Sibanye Gold Ltd
Why Harmony Gold Rose Strongly after Beating Estimates
Harmony Gold’s (HMY) revenues came in higher than analysts’ estimates while its all-in sustaining costs were lower than market expectations.
How Did AngloGold Reduce Its Costs despite Lower Production?
AngloGold Ashanti that for the last three years, its management’s focus has been on the widening of its margins on a sustainable basis.
Will Gold Keep a Tab on the Inflation Level?
As precious metals have steadily fallen for the past few weeks, investors have been trying to read the increase in Treasury yields during the same period.
Palladium Trades at Multiyear Low Owing to Chinese Slump
Palladium has seen six out of seven down trading days as of January 12. The recent stock market slump in China, which caused global tumult, hurt palladium.
Gold ETFs and Miners Taking Cues from Rate Hike Conundrum
Investments in the precious metals sector—including mining—substantially depend on the rate hike conundrum.
Reading the Technicals of Mining Shares
After the revival on Friday, June 29, Monday was another choppy day. Let’s look at the technicals for four miners.
How Mining Stocks Are Trading
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), […]
Gold Recovered as Markets Took a Breather following the Election
After surging to multimonth highs, gold slowly retreated to its original level. Gold fell from its overnight high, and equity markets rebounded from their fall.
How the Physical Gold Demand Translates to Prices
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 Maintained Their Gains on Tuesday
The precious metals saw two straight days of gains on Monday and Tuesday. Gold futures for December expiration rose 0.76% on Tuesday and closed at $1,356.90 per ounce.
India’s Slumping Gold Imports Are Bad News for Gold Investors
India imported gold worth $1.97 billion in June—a fall of 37% YoY (year-over-year). That’s quite low compared to a rise of 10.50% YoY in May.
How Is the Gold-Silver Ratio Moving in April 2017?
As of April 18, 2017, gold and silver have risen 12% and 14.8%, respectively, year-to-date.
AngloGold, South Africa’s Lowest-Cost Miner: Can Others Catch Up?
AngloGold Ashanti (AU) is the lowest-cost South African gold miner.
What’s the Production Upside for Stillwater in the Long Term?
Stillwater is ramping up Blitz, a new project and its main development asset. The company expects the first product from it in mid-2018.
The Word on the Street: What Analysts Are Saying about AngloGold Ashanti
About 59% of analysts covering AngloGold Ashanti have issued “buy” recommendations. About 24% of analysts have issued “holds,” and 18% have issued “sells.”
Can Stillwater Defend Its Place on the Cost Curve?
Stillwater Mining is in the first quartile of the industry cost curve. This is due to its robust cost structure, higher productivity, higher grades, and stable input costs.
Eldorado Gold: The Worst-Performing Gold Miner in January
Eldorado Gold (EGO) is Canada’s second-largest gold mining company, whose price is trading at $2.22 per share as of January 28, 2016.
Gold Is the Dominant Precious Metal
Precious metals are taking the lead. The gold for August delivery was the most actively traded contract on July 20. It fell 2.20% and closed at $1,106.80 per ounce.
Is the Egyptian Pound Set for More Devaluation?
The IMF announced that it would be lending $12 billion to help revive the Egyptian economy and help the central bank stabilize the Egyptian pound.
Which South African Miner Offers the Optimal Geographical Mix?
AngloGold Ashanti (AU) it is less exposed to South Africa than other South African miners. About 28% of its production comes from South Africa.
Which Intermediate Gold Miners Have Cost Advantages in 2H15?
All-in sustaining costs make up a comprehensive and important cost metric for gold mining companies. A lower AISC is better for gold miners.
Analyzing Investors’ Positions in Gold
COMEX non-commercial gold futures contracts, traded by large speculators and hedge funds, totaled 292,000 in the data reported through September 27, 2016.
What’s in Store for South African Miners after the Fed’s Rate Hike?
AngloGold Ashanti (AU) stock has been under pressure in 2017 and is down 2% year-to-date through March 16, 2017.
Which South African Gold Miner Has Received an Upgrade?
Sibanye Gold (SBGL) entered into an agreement with Stillwater Mining (SWC) to acquire all its stock in December 2016.
What Will Sibanye Achieve through the Stillwater Deal?
The acquisition will add a significant long-term production upside from Blitz as well as recycling capabilities through the Columbus metallurgical complex.
Weighing the Affects of Financial Leverage on Gold Miners in 2015
Because gold mining is a capital-intensive industry, gold miners raise debt to fund their capital expenditures—a risky funding source, given interest.
How Strong Does AngloGold’s 2H16 Need to Be to Reach Its 2016 Guidance?
AngloGold’s 1H16 production was somewhat lower than expected due to safety stoppages in South Africa and poor recoveries at Kibali in the DRC.
Inside the Analyst Estimates for AngloGold
Wall Street analysts covering AngloGold Ashanti (AU) are estimating revenue of $1 billion for 2Q16, which implies a YoY growth of 4% and QoQ growth of 7.5%.
Here’s What Could Be Driving the Rating Changes for South African Gold Miners
AngloGold Ashanti (AU) saw its last recommendation change in May 2017, when CIBC downgraded the stock to a “sector perform” rating.
Which Stocks Are Uptrending in Their Correlations to Gold?
It’s expected that precious metal mining stocks will follow precious metals. So it’s crucial to know which stocks are closely associated with precious metals.
Evaluating Gold Production for Intermediate Gold Miners in 2Q15
Gold production is an important metric for gold miners, because miners generally try to increase gold production in order to reduce costs amid low prices.
Platinum Touched Its Six-and-a-Half-Year Low in 2015
As automobile catalysts comprise ~44% of the demand for platinum, the Volkswagen scandal curbed the demand for diesel-fueled cars that use platinum as a catalyst. This pulled down the already depressed platinum and comparatively strengthened palladium.
Could South African Gold Miners Catch Up with Gold?
South African gold miners’ issues South African miners, which can be categorized as senior or intermediate miners, are driven by unique factors. In 2Q17, South Africa was downgraded to “junk” by Fitch Ratings and Standard and Poor’s. The South African mining industry has been riddled with political, infrastructure, and labor issues. Stock performance In 2017, Gold Fields […]
Ratings Changes for South African Gold Miners: What Do They Mean?
The Bank of America Merrill Lynch upgraded AngloGold Ashanti (AU) from “neutral” to “buy” on April 5, 2017. Citigroup downgraded it to “sell” on February 22, 2017.
Are Stillwater Mining’s Assets Value Accretive for Sibanye Gold?
Stillwater Mining (SWC) is the only US-based miner of PGM (platinum-group metals) and the largest producer outside of Russia and South Africa.
What Are the Biggest Catalysts for AngloGold’s Valuation Multiple?
AngloGold Ashanti, one of the largest gold mining players, has an EV-to-EBITDA multiple of 5.7x—the highest among the South African mining companies.
Stillwater Mining’s Balance Sheet against Its Global Peers
Despite lower PGM (platinum group metals) prices, Stillwater Mining (SWC) has a strong balance sheet and maintained a position of strong net cash at the end of 2015.
How Is Stillwater Cutting Costs to Stay Ahead of Platinum Prices?
Stillwater Mining (SWC) has seen a significant increase in recovery rates, which is one of the best in the PGM (platinum group metals) industry.
Is the Gold-Silver Ratio Headed South?
The gold-silver ratio was trading at 78.7 on Monday, April 11, 2016. The gold-silver ratio is trading close to its 100-day moving average.
Gold Prices Are near $1,200 per Ounce: Led by Depreciating Dollar
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.
How Could the Fed’s Decision Impact South African Miners?
With the Federal Reserve’s rate hike decision in December 2016, the US dollar has strengthened, which could weaken the rand. In such a scenario, miners’ costs could fall.
Harmony Gold: Rand Gold Price Leverage a Plus, but Concerns Remain
Inconsistent operational performance, local labor issues, and a volatile metal price environment have impacted Harmony Gold’s (HMY) stock negatively.
How Are South African Gold Miners Doing Post-Brexit?
This year has been exceptional for South African gold miners. The uptrend for the stocks has been driven by gold’s safe-haven appeal and the weak South African rand.
Platinum and Palladium Lose Their Luster in 2016
While gold and silver have topped charts in 2016 so far (as of February 2), the typically best-performing metals, platinum and palladium, have begun to lag.
Assessing Free Cash Flows of Intermediate Gold Miners in 2015
FCF is important in that it is used for debt repayment, capital expenditures, and dividends or buybacks. FCF is directly related to gold industry prospects.
The Outlook for Asian Gold Demand in 2017
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 […]
What Factors Are Impacting Costs for AngloGold?
Gold prices fell by 3% YoY in 1Q16. Production dropped by 7.2% YoY. AngloGold’s total cash costs fell by 5%, and its AISC fell by 7% YoY in the same period.
Interpreting Analyst Recommendations for Intermediate Gold Miners in 2015
Tahoe Resources appears to be a favorite in gold among analysts because it had the highest percentage of “buy” recommendations at a whopping 86%.
What Will Impact AngloGold’s Valuation Most?
AngloGold has an EV-to-EBITDA multiple of 5.1x—the highest ratio among South African mining companies. Its estimated EBITDA margin for 2017 is 42.4%.
Why Has Stillwater Mining Underperformed Its Peers in 2016?
Stillwater Mining (SWC) has underperformed its peers YTD as of March 2, 2016. It has, however, outperformed palladium prices with a rise of 3%.
Gold Prices Settle near Monthly Lows: US Dollar Index Appreciates
The US Dollar Index gained against the basket of currencies on April 23, 2015. The index gained on the consensus of the improving US economy.
Inside AngloGold Ashanti’s Positioning in 2016
YTD, Sibanye Gold (SBGL) has risen by 191%, while AngloGold Ashanti (AU) and Gold Fields (GFI) have risen 180% and 100%, respectively.
South African Miners Enjoy Unique Factors that Merit Attention
While South African miners can be categorized with senior or intermediate miners, there are unique factors driving South African miners that merit special attention.
Net Debt-to-EBITDA Expectations for Intermediate Gold Miners in 2015
In 2015, the average net debt-to-EBITDA ratio of the six intermediate gold miners we’ve been evaluating in this series is 0.9x—a similar level to 2014.
Gold Price Leverage at Full Play at Sibanye: How Far Can It Go?
Since the start of 2016, Sibanye Gold has successfully played its operating leverage to the upside. While gold prices have risen by 16% year-to-date, Sibanye’s stock price has risen by a whopping 127%.
How Have Harmony and Sibanye Outperformed Their Peers in 2016?
On May 27, Harmony Gold (HMY) had gained a staggering 275% year-to-date.
Weighing Liquidity against Leverage for Intermediate Gold Miners
Eldorado is the best-placed mining company in terms of short-term liquidity, whereas Sibanye Gold’s current ratio is the poorest-placed, as it is very low.
These Factors Will Impact AngloGold’s Costs in 2H16
AngloGold’s cost metrics improved during 1H16. Its AISC (all-in sustaining costs) for 1H16 reached $911 per ounce—$13 per ounce YoY improvement.
Where Does Stillwater Rank in Terms of Mining Risk?
Stillwater Mining (SWC) exhibits strong leverage to palladium prices. It has lower geopolitical mining risk than South African PGM (platinum group metals) producers.
As Gold Prices Rally, What Else Is Driving Gold Mining Stocks?
Gold prices have risen 15% year-to-date as of April 13, making gold the best-performing investment in 2016 so far. But there’s more to the story than prices alone.
Gold Surges on Non-Farm Employment Data: Will Gains Be Sustainable?
In the wake of the stabilizing economy, we have seen a downfall in precious metals that has been especially painful for gold investors.
How Are the Mining Stocks’ Technical Indicators Moving?
Goldcorp (GG) and Newmont Mining (NEM) have dropped 4.2% and 6.2%, respectively, over the last month.
Can Sibanye Achieve Its Cost Guidance for 2016?
Sibanye Gold’s (SBGL) gold production in 1Q16 was 360,800 ounces, which is 14% higher compared to the same quarter last year.
An Overview of Miners as January 2018 Wraps Up
Sibanye Gold (SBGL), Agnico Eagle Mines (AEM), Yamana Gold (AUY), and Kinross Gold (KGC) had RSI readings of 37.9, 61.7, 63.4, and 48.4, respectively, on January 25, 2018.
How Interest Rates Played on Gold in 1Q17
The Fed raised the interest rate in March, which increased pessimism for precious metals. But soon after the rate hike, precious metals started reviving.
Where Is the Gold-Silver Ratio Headed?
The rise in the haven bids in 2016 has caused a jump in the price of gold by close to 17%. However, silver has increased only 8.3%—almost half the rise in gold.
Miners Traded Significantly above Their 100-day Moving Averages
With the rally in precious metals, precious metal mining stocks benefited the most. Among the miners, the South African miners outperformed.
How Mining Stocks Performed on July 17
Most mining companies have started rebounding from the losses they saw over the past one week due to the drop in precious metals.
African Central Banks Tighten Policy Rates to Counter Inflation
The South African Reserve Bank increased policy rates by 25 basis points to 7.0% on March 17, 2016, as Governor Lesetja Kganyago expressed concern over the recent sluggish economic growth in South Africa.
Mining Stocks Gave Mixed Reactions to Global Tensions
On Tuesday, January 5, mining companies gave a mixed reaction to the continued rise in precious metals.
Optimism Driving HSBC’s Near- and Mid-Term Forecasts for Platinum
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.
A Brief Technical Analysis of the Miners in October 2017
When considering mining stocks, investors should consider crucial indicators like RSI (relative strength index) levels and call implied volatility.
How Dollar Weakness Prompted Gold’s Rise
The most recent fall of the US dollar against the basket of six major world currencies gave further support to dollar-denominated precious metals.
Are Gold Miners Beating Their Key Moving Averages in 2016?
Silver has outperformed gold over the past month. Gold and silver have risen 21% and 25.2%, respectively, since the beginning of the year.
How Miners Are Performing in April amid Less Unrest
All four precious metals except palladium saw a down day on Friday, April 20. That led to a fall in most miners’ prices.
The Correlation between Gold and Oil
Oil is widely used in mining exploration, and a surge in oil prices may squeeze miners’ margins, leading to a fall in their share prices.
Could Harmony Gold Regain Analysts’ Lost Favor?
According to the consensus compiled by Thomson Reuters, Harmony Gold (HMY) has “buy” ratings from 30% of the analysts covering the stock.
Could South African Miners’ Difficulties End in 2019?
South African miners (GDXJ) have traditionally traded at discounts to their global counterparts (GDX).
Platinum at 14-Year Low, All Precious Metals Tumble: What’s Next?
After witnessing a rebound on Friday, precious metals fell again on Monday, July 2. Gold fell 0.88% to close at $1,242 per ounce.
How the Platinum Markets Are Moving in Relation to Gold
Higher demand for gasoline-powered vehicles over diesel-based vehicles caused a slump in platinum prices.
US GDP Misses Expectations—Is Gold Reacting?
Gold posted a fifth straight day of decline on June 28, touching a fresh six-month low of $1,244.80. Gold ended the day at $1,247.80.
What’s Baked In to Gold Fields’ Analyst Ratings?
Gold Fields stock has fallen 11.4% YTD (year-to-date) as of June 14, and so have its South African peers (GDX).
What’s Supporting Gold Prices and What’s Not
On Thursday, silver was up 0.8% to $16.6 an ounce.
Reading the Reactions of Precious Metals Miners on May 23
In this article, we’ll discuss the moving averages, returns, and RSI scores of Sibanye Gold, Gold Fields, Coeur Mining, and Barrick Gold.
What the Gold-Platinum Ratio Indicates
Lower platinum prices are a major concern for platinum miners in Africa.
How Market Unrest Is Affecting Gold
If we look at the historical performance of precious metals compared to markets, we see that gold has been closely tracking market volatility.
Reading the Movements of Miners’ Correlations with Gold
In this part of our series, we’ll look at the correlation between gold and four mining stocks: Royal Gold (RGLD), Goldcorp (GG), Sibanye Gold (SBGL), and Gold Fields (GFI).
Precious Metal Miners and Their Technicals
All four precious metals except platinum saw their prices rise on Tuesday, April 10, 2018.
What Mining Stocks’ Relative Strength Index Tells You
The precious metals and miners were widely expected to react negatively after the Fed decided to hike interest rates.
A Look at Precious Metal Miners at the End of March
Most mining companies saw an upswing in prices on Thursday, March 29, 2018, since silver rose and gold was only marginally lower.
Fed Rate Hike and Outlook Priced into Gold Prices: More Upside?
In its first meeting under new Chief Jerome Powell, the US Federal Reserve increased interest rates by a quarter of a point.
How Mining Stocks Move in Relation to Precious Metals
In general, most mining companies rose on Friday, March 23, following gold and silver.
Keeping an Eye on Mining Stocks’ Correlation with Gold
Mining stocks’ correlation with gold is crucial, as gold is famously known as the big brother of precious metals.
How Mining Stocks Moved on March 6
Precious metal miners had a reasonably good start to 2018.
How Could Trade Wars Impact Precious Metals?
If trade wars do result from the steel and aluminum tariffs, it could be a boon for gold.
How Is the Volatility Index Impacting Gold?
Another critical factor that has been affecting the price movement of precious metals is overall market volatility.
What the Gold-Silver Spread Indicates
The RSI (relative strength index) of the gold-silver spread was 54.9 on February 23.
Analyzing Miners’ Performance in February 2018
Among the four miners that we’re discussing, New Gold and Sibanye Gold have a YTD loss of 13.7% and 7.7%, respectively.
How the Interest Rate Hike Is Playing on Precious Metals
Another element besides the fluctuations of the US dollar that could have led to the fall in precious metals is the US interest rate.
Why Gold Failed to Draw a Bid after the Equity Market Sell-Off
In this series, we’ll look at fundamental factors such as inflation, the US dollar, interest rates, and the equity market outlook to assess gold’s outlook for the rest of the year.