Newmont Mining Corp

When the Federal Reserve chair, Janet Yellen, testified to Congress on February 11, she affirmed the Fed’s consideration of negative interest rates. Under a negative interest rate scenario, investors would pay interest to the bank for holding their money.

Fears in the overall financial market about a Brexit, the possible exit of Britain from the European Union, have abated. This helped gold fall.

With manufacturing slowing, a reading of the Non-Manufacturing Index at an above-neutral level (56.9) may provide some relief to the US economy, which is highly dependent on the service sector for its economic growth.

Goldcorp’s (GG) all-in sustaining costs (or AISC) are falling. In 2013, its AISC was $1,031 per ounce. It expects the AISC to be in the range of $950–$1,000 for 2014.

Goldcorp (GG) reported its 3Q17 results after the market closed on October 25, 2017. It reported EPS (earnings per share) of $0.13, which beat analysts’ expectations by $0.02.

Cheaper oil means lower inflation. This means gold should be affected negatively since it’s usually considered a hedge against inflation.

These economic concerns and monetary stimulus expectations have decreased the probability of an interest rate hike by the US Federal Reserve, and the chances of an interest rate hike in July dropped to zero.

Physical buying from China and India should support the demand for gold. But a rate hike by the Fed could be the catalyst that could take gold down.

AISC (all-in sustaining costs) are an encompassing measure that helps compare miners’ performance—a vital metric for investors. They show the company’s margin cushion at prevailing gold prices (GLD)(IAU).

It’s important to keep an eye on labor conditions since they offer a look at the future direction of gold prices and ultimately gold-backed ETFs.

Lower ore grade increases the amount of waste stripping required—in order to extract some volume of ore—as a result of mining more tons of waste.

The average ratio of the NYSE Arca Gold Miners Index and the S&P 500 Index (SPY) is 0.18 compared to the ten-year average of 0.68.

As a group, the average gains of North American senior gold miners (GDX) (RING) have been muted.

Market sentiment for Coeur Mining Coeur Mining (CDE) is a high-cost producer compared with peers (RING) (SIL). While it has initiated several measures to bring down its costs in the last few years, they remain high. Higher costs make CDE more leveraged to gold and silver prices than other low-cost producers such as Barrick Gold (ABX) […]

Gold doesn’t give any returns besides appreciation. Appreciation doesn’t always happen. As a result, gold has to compete against assets that yield something. When the return on the alternate assets begins to rise, the demand for gold falls. In a scenario where the real interest rates are rising continuously, the demand for gold—as an investment—will start falling.

Although 2017 has not been very good for Newmont Mining stock due to short-term issues, its outlook remains strong.

Gold price’s reversal this year has created opportunities in gold stocks. The SPDR Gold Shares ETF (GLD) had gained 11% year-to-date as of Friday.

The RSI levels of our four select mining giants have all increased lately due to their higher stock prices.

Copper prices stabilized on Monday, July 4, amid expectations of stimulus from central banks.

Newmont Mining is poised to overtake Barrick Gold as the world’s largest gold producer in 2018.

Debt to gross domestic product (or GDP) is the ratio that shows how much a country owes versus how much it earns. Investors use this ratio to measure a country’s ability to make future payments on its debt. This impacts the country’s borrowing costs and government bond yields.

Kirkland Lake is first among analysts’ favorite gold stocks with 91% “buy” and 9% “hold” ratings. The target price implies a potential upside of 16%.

Goldcorp (GG) has given negative returns in 2017. Its stock has lost 6.1% of its value as compared to a gain of 12.8% in the iShares Gold Trust (GLD) and 11.1% in the VanEck Vectors Gold Miners ETF (GDX).

All the gold miners (RING)(GDX) we’re covering in this series except for Barrick Gold (ABX) reported earnings beats in 3Q17.

Investors should watch out for any tailwinds or headwinds that could impact Newmont’s costs in 1Q15.

Among senior gold miners, Goldcorp is trading at the highest multiple of 10.3x—a premium of 31% compared to the peer average.

All-in sustaining costs (or AISC) came in at $554 per ounce, a reduction of $142 per ounce from the same period last year. The reduction was mainly due to lower sustaining capital expenditure (or capex).

Gold and the U.S. dollar were associated when the gold standard was being used. During this time, the value of a unit of currency was tied to the specific amount of gold. The gold standard was used from 1900 to 1971. The separation was made in 1971. The U.S. dollar and gold were freed. They could be valued based on supply and demand.

Newmont Mining (NEM) has five projects in final stages, all of which will start production either this year or next.

In 3Q15, Goldcorp (GG) posted record gold production of 922,200 ounces—2% growth quarter-over-quarter and 42% growth year-over-year.

Tracked by the Federal Reserve, the weekly US Dollar Index measures the value of the dollar compared to the currencies of its significant trading partners.

When money supply growth is used to prop up the financial and economic system instead of fuel strong economic growth, the price of gold relates to growth of the money supply.

A cap was put in place to stop the currency’s appreciation. An appreciating local currency is detrimental to exporters.

The gold price increase kept pace with the global money supply until recently. The relationship between the two appears to have broken.

Increased shareholder returns were the main motivation behind the Newmont Mining and Goldcorp merger.

Gold miners usually act as a leveraged play on gold prices. In 2018, the VanEck Vectors Gold Miners ETF (GDX) fell 9.3%, amplifying the 1.9% fall in gold prices (GLD).

In this series, we’ll consider recommendations, target prices, estimates, and potential upsides and downsides for senior gold miners.

Barrick has reduced its debt more than 57% in the last four years from $13.4 billion at the end of 2014 to $5.7 billion at the end of 2018.

Barrick Gold (GOLD) reported AISC of $788 per ounce and a cost of sales of $980 per ounce in the fourth quarter.

At the end of 2018, Barrick Gold (GOLD) reported mineral reserves of 64.5 million ounces—a decline of 3.4% YoY.

When it comes to investing in stocks, Berkshire Hathway’s (BRK.A) chair, Warren Buffett, and Bridgewater’s founder, Ray Dalio, have similar advice.

Newmont Mining (NEM) reported its fourth-quarter earnings results before the market opened on February 21.

Newmont Mining’s (NEM) has one of the best project pipelines in the sector (GDX)(GDXJ)—stronger than Kinross Gold (KGC), Barrick Gold (ABX), and AngloGold Ashanti (AU).

In this article, we’ll do a technical analysis of a few select mining stocks. When investing in mining stocks, it’s crucial to read their indicators.

NGD and HL are both trading below their longer-term 100-day moving averages.

None of the analysts covering Kinross Gold (KGC) recommended a “sell” rating on the stock. 40% of them have “buy” ratings, while 60% suggest a “hold” for the stock.

Gold is a non-yield bearing asset that reacts negatively to rises in the interest rate.

Gold is the most influential precious metal, and most miners follow its price trends.

Among these spreads, the gold-silver spread is the most talked about because it measures the number of silver ounces it takes to buy a single ounce of gold.

The PowerShares DB Gold Fund (DGL) and the VanEck Merk Gold Trust (OUNZ) rose 2.2% over the five trading days leading up to December 27, 2017.