Primero Mining Corp

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.

On May 31, 2017, the implied volatilities of Royal Gold, Goldcorp, Agnico Eagle Mines, and Primero Mining stood at 26.5%, 30.7%, 32.1%, and 90.6%.

Among these miners in our analysis, Primero Mining has the highest correlation with gold, and First Majestic Silver has the lowest correlation.

Mining stocks react Precious metals saw a sudden upswing in their prices due to geopolitical unrest in Syria and North Korea. Consequently, precious metal mining stocks and funds rose. Meanwhile, investors remain concerned about the potential impact of any further interest rate hikes that the Fed may pursue. On a YTD (year-to-date) basis, Sibanye Gold (SBGL), […]

India and China make up 50.0% of the global demand for physical gold. When gold prices fall, physical gold-buying provides support for gold.

Precious metals mining companies suffered in 2015 due to falling precious metals prices. In 2015, precious metals took many of their movement cues from the Fed’s meetings.

The New Home Sales figure stood at 592,000, higher than the expectation of 575,000. The higher sales were likely due to the better forecast for the economy.

Gold prices once again retreated on Friday, November 25, by $10.3 to close at $1,179 an ounce—the lowest level that gold has seen since February.

The strong economic numbers from the US during 1Q17 have been casting a shadow over precious metals.

COMEX-traded gold futures for June delivery fell marginally by 0.24% and closed at $1,190.30 per ounce on Wednesday, May 6, 2015. Gold prices were down.

The Fed rate hike expectation has been one of the biggest factors driving gold prices for some time. Interest rates have been near zero since 2008.

COMEX-traded June gold futures fell marginally by 0.50% and closed at $1,183 per ounce on May 11. Gold prices traded almost flat—led by weak Asian demand.

Lower gold prices impact gold mining stocks. The US Dollar Index appreciated against the major currencies and increased by 0.06% on May 7, 2015.

Gold June futures contracts trading in COMEX rose by 0.54% and settled at $1,193.20 per ounce on May 5. Prices gained as the US Dollar Index depreciated.

June gold futures trading in COMEX settled at $1,192.40 per ounce on May 12, 2015. The increase in gold prices was supported by the depreciating dollar.

After falling 18% in 1Q17, physical demand for gold seems to have picked up in 2Q17.

Physical gold demand India and China constitute ~50% of the global demand for physical gold. These markets are price sensitive, so when gold prices fall, physical gold-buying in these markets provides support for gold. In this article, we’ll see if demand from India and China could accelerate in 2017. Indian gold demand India’s demand for gold […]

June gold futures contracts increased marginally by 0.19% and closed at $1,188.80 per ounce on May 28, 2015. Gold prices increased marginally.

The iShares Gold Trust (IAU) and the iShares Silver Trust (SLV) have seen massive YTD (year-to-date) gains of 12.1% and 14.8%, respectively.

Gold futures for April expiration fell for the second straight day on March 1, 2017, as the US dollar showed strength.

Palladium has been a lagger in the current year, having rallied the least among the four precious metals. Palladium is mined largely as a by-product of nickel production in Russia and platinum production in South Africa.

The companies in the energy sector were lower on November 29. The major ETFs related to the energy sector such as USO and DBO fell 3.6% and 3.4%.

The rise in precious metals on Tuesday, June 27, 2017, was also due to the slump in the US dollar.

Currently, Goldcorp (GG) is free cash flow (or FCF) negative. It had a negative FCF of $355 in 3Q14. However, Goldcorp should turn FCF positive in 2015.

Our experience with Steve Yuzpe has been an extremely favorable one and we have confidence in his abilities to lead the company going forward.

Gold is the most dominant among the four precious metals. It’s important that investors analyze how miners are moving compared to precious metals.

If we look at the one-year correlation of miners, Barrick Gold has the lowest correlation with gold, while Eldorado Gold has the highest.

When you look at mining stocks’ performance, it’s important to analyze their correlation with gold. These stocks typically take their directional cues from gold, which is the most dominant among precious metals.

A study of the correlation of mining shares to gold is important since it gives investors an idea of the directional move of miners compared to gold.

Gold fell for the third consecutive day on October 18, 2017, as the US dollar regained strength. However, October 19 was an up day for gold and silver.

The Sprott Gold Miners (SGDM) and the iShares MSCI Global Gold Min (RING) have risen 10.6% apiece on a YTD (year-to-date) basis.

Among the miners that we’re looking at in this part of the series, Sibanye Gold has the lowest correlation to gold on a YTD basis, while Gold Fields has the highest correlation to gold.

Mining funds that have a strong relationship to precious metals are the Global X Silver Miners (SIL) and the VanEck Vectors Gold Miners (GDX).

On a YTD basis, First Majestic has the lowest correlation to gold, while Primero Mining has the highest correlation to gold.

The outlook for palladium looks bright due to the possible rise in demand from China. Switzerland witnessed its net exports of palladium rise in August.

Monday, September 25, 2017, was a day of revival for mining shares as tensions in North Korea resurfaced.

In this part of our series, we’ll look at the relationships that some miners have with the precious metals they mine.

The miners that experienced the greatest losses during the past five trading days were IamGold (IAG), Silver Wheaton (SLW), Goldcorp (GG), and Primero Mining (PPP). These miners fell 7.5%, 6.0%, 6.2%, and 57.5%, respectively.

On September 18, gold fell 1.1% and closed at $1,306.90 per ounce. Of the precious metals, silver fell 3.1% and closed at $17.10 per ounce.

Among the four miners we’re looking at, Gold Fields has the highest correlation to gold on a YTD basis, while Sibanye Gold has the lowest correlation to gold.

Silver Wheaton has a three-year correlation of ~0.70 with gold and a year-to-date correlation of ~0.80.

Primero and Goldcorp have seen the highest correlation with gold, while Goldcorp has the lowest correlation.

Silver Wheaton has the highest correlation with gold, while Franco-Nevada has the lowest correlation.

Palladium is the precious metal with the highest returns on a YTD basis. It has risen 28.6% YTD. The other three precious metals have been slower.

Precious metals once again saw a down day on Thursday, August 3, 2017, except for platinum, which rose 1.1%.

Most of the miners have seen an upswing in their prices over the past week.

Gold prices fell once again on Wednesday, July 26, 2017. Gold futures for August expiration were 0.22% lower for the day, settling at $1,249.4 per ounce.

Another element that was crucial in determining the directional movement of precious metals was the two-day Federal Reserve meeting.

Gold hit a four-week high on July 24, 2017. Gold futures for August expiration touched a high of $1,259 per ounce on the day, ending up at $1,254 per ounce.

In this part of the series, we’ll look at the technicals of mining stocks such as New Gold (NGD), Newmont Mining (NEM), Gold Fields (GFI), and Primero Mining (PPP).

Mining stocks have bounced back from the choppy markets we’ve seen over the past month. On July 20, most mining stocks saw upward movements in their prices.

Precious metals saw an up-day on July 20, 2017, after Mario Draghi said that policymakers would discuss potential changes in the bond-buying program in autumn.

So far, palladium has been stronger than the other precious metals in 2017. It has seen a YTD (year-to-date) gain of 26.5%.

Gold futures for August expiration touched a low of $1,209.6 an ounce and ended the day at $1,212.1 on Monday, July 10.

Palladium has been much stronger than its fellow precious metals, having seen a YTD (year-to-date) gain of 26%.

Gold fell again on Friday, June 9, 2017, for the third consecutive day. It touched a low of $1,264.80 per ounce and then settled at $1,269.50.

Gold retreated on June 8, 2017, by almost 1% to $1277.50 an ounce. Silver and platinum followed, falling 1.2% and 1%, respectively.

On June 6, the implied volatilities of Alamos Gold, Primero Mining, Silver Wheaton, and Franco-Nevada were 51.1%, 90.6%, 30.8%, and 24.5%, respectively.

Physical demand fell in 1Q17 Physical gold demand fell 18% in 1Q17, according to the WGC (World Gold Council). Investors most likely dumped the metal to bet on riskier assets after the US presidential election. The demand in 1Q17 was 1,034 tons, the lowest in 11 years. ETF inflows suffered greatly compared with last year, […]

One of the critical elements that plays on precious metals besides the overall market sentiment is the US dollar.

The price of gold witnessed a rebound on Monday, May 8, after touching $1,221 per ounce—the lowest level we’ve seen since the middle of March.

The gold-platinum spread was ~1.3 on April 26, 2017. The gold-platinum spread RSI on that day was 59.

US dollar drops Besides geopolitical news, another important factor that has contributed to the rise of gold is the fall of the US dollar. The US dollar (UUP), depicted by the US dollar index, or DXY, dropped 0.27% on April 17 after hitting close to a four-week high on April 10. The DXY had fallen 1.9% […]

On a 30-day trailing basis, gold, silver, platinum, and palladium have risen 6.8%, 1.7%, 3.3%, and 5.5%, respectively.

Platinum was the winning precious metal and rose 2.9% on April 11, ending the day at $966.20 per ounce.

After US President Donald Trump ordered the launch of nearly 60 Tomahawk cruise missiles on a Syrian air base, precious metals experienced a lift off.

Now that mining companies have begun witnessing revivals from their losses earlier this year, it becomes crucial to examine the volatility figures and RSI.

Besides the Fed’s stance, another crucial factor that is playing on precious metals is the US dollar.

Amid the recent turbulence in markets, precious metals have begun to rise, but we’ve only seen the slightest positive impact on mining shares.

Aside from the Trump trauma that gripped markets last week, another specific focus on Friday, March 24, was the Fed.

For those investors interested in parking their money in mining shares, it’s crucial to understand which stocks are closely tied to precious metals and which aren’t.

The buoyancy of precious metals could be challenged even more by future interest rate hikes, as the Fed indicated by its latest hike on March 15.

Precious metal stocks (IAU) (SLV) are often more carefully synced to the metals that they mine than they are to the overall equity market.

As platinum markets are looking at a deficit in supply in 2017, the fundamentals for the price of these metals seem supportive.

The uncertainty of the markets not only closely impacts precious metals, but also precious metal mining stocks.

Precious metals fell on Thursday, March 2, 2017, as the US dollar firmed.

Agnico-Eagle Mines has the highest correlation to gold year-to-date. Primero Mining is the least correlated to gold.

It’s important to understand which mining stocks have overperformed and underperformed precious metals.

Mining companies that have high correlations with gold include B2Gold (BTG), Royal Gold (RGLD), Agnico Eagle Mines (AEM), and Primero Mining (PPP).

A reduction in volatility could mean a downward swing for gold, and an increase in inflation could mean more demand for gold.

Precious metal prices have risen due to uncertainty since Donald Trump won the US presidential election.

Mining companies with high correlations to gold include Agnico-Eagle Mines (AEM), Primero Mining (PPP), Silver Wheaton (SLW), and Franco-Nevada (FNV).

Sibanye Gold is the most correlated with gold on a YTD (year-to-date) basis among the four stocks in our review.

The rate hike phenomenon in December 2016 played negatively for precious metals.

Many of the changes in precious metals are determined by the overall health of the economy.

Sibanye Gold is the most correlated with gold on a YTD basis among the four stocks in this review.

It’s important to monitor the implied volatilities of large mining stocks as well as their RSI levels—especially after the carnage in precious metal prices.

The SPDR S&P Metals and Mining ETF and the Vaneck Vectors Junior Gold Miners Fund have seen YTD gains of 6.9% and 14.8%, respectively, as of January 11.

Precious metal mining stocks are known to closely track the performance of their respective precious metals.

The volatilities of Gold Fields, Agnico-Eagle, Primiero, and Randgold were 25.9%, 20.8%, 33.4%, and 15.2%, respectively, on December 5, 2016.

India’s demonetization As India moved to replacing its higher-denomination notes, the impact was far felt. The country’s tax authority is making a list of dealers that they believe could be involved in suspicious activity. The ban on gold imports after the demonetization has put many dealers in danger. Axis Bank, India’s third-biggest private sector lender […]

Randgold is the most correlated with gold on a YTD basis among the four stocks under review. Primero Mining is the least correlated with gold.

Fluctuations in the dollar are a major determinant of changes in the prices of precious metals. Gold and the US dollar mostly have an inverse relationship.

Randgold is the most correlated with gold on a YTD basis among our four mining companies. Primero Mining is the least correlated with gold, mainly due to its YTD losses.

While many investors are watching the Fed’s interest rate stance, others are looking at the fundamentals of South African precious metal mining companies.

After Donald Trump won the US presidential election on November 8, gold initially climbed above $1,300 per ounce. Shortly after that, it was back its original trading range and fell even lower after that.

Though all four precious metals have been slowly retreating, palladium has a year-to-date gain of 24.9%.

Precious metals saw some good news at the beginning of 2016. However, lately, precious metals prices have been falling slowly. As a result, mining stocks have also fallen.

Donald Trump’s recent victory is shining a light on the possibility of a rise in inflation and how such a rise could work for gold.

On November 14, 2016, Dallas’s Federal Reserve president, Robert Kaplan, said that the US central bank is on track to raise rates soon.