Tahoe Resources Inc
Newmont Mining Rejects Barrick Gold’s Hostile Acquisition Bid
In a press release today, Newmont Mining said that Barrick’s unsolicited negative premium proposal is not in shareholders’ best interest.
Barrick Gold Makes a Hostile Bid to Acquire Newmont Mining
Today, Barrick Gold (GOLD) made an unsolicited bid for its rival Newmont Mining (NEM) in an all-share deal.
Will Silver Miners’ Multiples Expand after a Long Dry Spell?
On November 14, 2018, Pan American Silver announced that it was buying Tahoe Resources in a $1.07 billion cash and stock deal.
Can Gold Miners Be Repriced as Consolidation Hits the Sector?
The consolidation in the gold sector has already taken a major step up, with two of the largest miners announcing mergers.
Why Gold Miners’ Mergers and Acquisitions Are Heating Up
Newmont Mining (NEM) and Goldcorp’s (GG) deal, the gold space’s latest mega-merger, may suggest miners are getting serious about turning things around for stakeholders.
Pan American to Buy Tahoe Resources in $1.07 Billion Deal
Pan American Silver Corp. (PAAS) announced today that it has agreed to buy Tahoe Resources (TAHO) in a $1.07 billion cash and stock deal.
Which Silver Miners Look Primed for a Rebound after a Dry Spell?
Of all the major silver stocks, Tahoe Resources (TAHO) is trading at the lowest forward EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 3.3x.
Which Silver Miners Look Reasonable at Current Valuations?
Of all the stocks we’ve covered in this series, Tahoe Resources (TAHO) is trading at the lowest enterprise-value-to-forward-EBITDA multiple of 3.5x.
Can Tahoe Resources Regain Analysts’ Lost Favor?
YTD (year-to-date), Tahoe Resources (TAHO) has had the worst performance of all silver miners with losses of 44%.
What Could Change Analysts’ Minds about Hecla Mining
Of the silver miners (SIL) we’re covering in this series, Hecla Mining (HL) has a higher percentage of “buy” ratings only in comparison to Tahoe Resources (TAHO).
What’s Baked into Analysts’ Pan American Silver Ratings?
Pan American Silver (PAAS) stock has outperformed its peers as well as silver prices YTD.
How Do Analysts Rate Silver Miners?
In 2018 so far, silver prices have significantly underperformed gold prices.
Why Tahoe Resources Has Lost Favor with Analysts
YTD, Tahoe Resources (TAHO) has risen 3.5%. Its “buy” ratings are only better than Hecla Mining (HL).
Why Analysts’ Ratings for Pan American Silver Have Improved
Pan American Silver (PAAS) stock has outperformed its peers as well as silver prices YTD (year-to-date). As of June 26, it has risen 12.7%.
Analyzing Analysts’ Love-Hate Relationship with Silver Stocks
The five silver miners we’ll be discussing in this series have broadly outperformed silver prices and the silver miners’ index YTD.
Bulls versus Bears: What’s Driving Gold?
Since the start of 2018, several factors have boosted gold. However, gold has still been trading in a narrow range for the most part of the year.
Valuation Catalysts Silver Miners Should Watch for in 2018
Among the stocks we’ve discussed throughout this series, Tahoe Resources (TAHO) is trading at the lowest forward EV-to-EBITDA multiple of 4.7x.
Silver Underperforms Gold in 2018: Can It Correct Its Course?
As of March 16, 2018, the SPDR Gold Shares ETF (GLD), which tracks gold prices, had risen 0.8% YTD.
4Q17 Preview: Coeur Mining Seeks a Price Reversal in 2018
Coeur Mining (CDE) stock gained ~270.0% in 2016—among the highest in its peer group. In 2017, the situation reversed as CDE stock fell 17.5%.
This Is How Analysts See Gold Prices Moving in 2018
ICBC Standard Bank While ICBC Standard Bank is concerned about gold correcting in the short term due to extremely long inventor positioning, it remains optimistic about its prospects overall in 2018. The bank believes that lower inflation should keep the Fed from raising rates aggressively, thereby supporting gold. It expects gold prices to average $1,312 […]
What Put Coeur Mining in 2nd Place?
Right now, of the nine Wall Street analysts covering CDE stock, according to Thomson Reuters, 78% recommend a “buy,” while 22% recommend a “hold.”
Here’s What Drove Coeur Mining’s Free Cash Flow Year-to-Date
Coeur Mining’s (CDE) management is focused on generating significant FCF (free cash flow). For 3Q17, however, the company didn’t generate any positive FCF.
Which Gold Miners Popped and Dropped in 2017?
The North American gold miners’ results season is slated to begin on October 25. In this series, we’ll see how analysts view their revenues, earnings, and free cash flows.
Behind the Recent Analyst Rating Changes for Silver Miners
After the Guatemalan government’s decision to suspend Tahoe Resources’ (TAHO) license, the company saw several downgrades.
How the Ratings and Potential Upsides for Silver Miners Look Today
The performances of precious metal miners with substantial exposure to silver have been disappointing in 2017. As a group, they’ve returned just 0.9% YTD.
What Led to the Recent Divergence of Gold and Gold Mining Stocks?
The year-to-date stock performances of precious metal miners have been driven more by company-specific factors than by the direction of gold prices.
Analyst Support for Tahoe Resources Softens: What’s Next?
Due to the weak performance of Tahoe Resources (TAHO) stock and the uncertainty surrounding the outlook of the Escobal mine, Wall Street analysts have toned down their enthusiasm regarding the stock.
The Market Sentiment for Coeur Mining as 4Q17 Begins
CDE stock has risen 2.6% year-to-date. However, during the same period, silver prices gained 4.7% and the Global X Silver Miners ETF (SIL) rose 5.5%.
How Do Analysts View Tahoe Resources despite Its Underperformance?
Tahoe Resources (TAHO) stock has lost 44.1% of its value year-to-date until the end of September.
Coeur Mining Ranks 4th in the Top 10: Are Analyst Ratings Improving?
Coeur Mining has relatively higher costs than its peers (SIL), which makes it more leveraged to the changes in precious metal prices.
Which Silver Miners Look Undervalued?
Among the four silver miners we’re looking at in this part, First Majestic Silver (AG) has the highest forward EV-to-EBITDA multiple of 14.3x.
What Gold Miners’ Technical Indicators Are Telling Us
While the current rise in precious metal prices has provided a tailwind for miners, for some of them, the gains might be more self-sustained.
Are Technical Indicators Pointing to a Pullback in Silver Mining Stocks?
Among the five major silver miners under discussion in this series, only Pan American Silver has given positive stock returns in the trailing-three-month period.
Behind Silver Miners’ Debt Repayment Capacities
Silver companies try to maintain an optimal level of debt-to-equity to lower their costs of capital and maintain an optimum level of risk-reward for shareholders.
These Silver Miners Keep Improving Costs
Hecla Mining (HL) reported AISC (all-in sustaining costs) of $9.97 per ounce in 2Q17, an impressive improvement of 22.0% over the same quarter last year.
Why Silver Miners Are Underperforming Silver Prices in 2017
While silver prices often act as a leveraged play on gold, this hasn’t happened so far in 2017.
Understanding Coeur Mining’s Valuation Catalysts in 2017 and Beyond
Coeur Mining (CDE) is trading at a forward EV-to-EBITDA multiple of 6.9x, which is just higher than Tahoe Resources’ (TAHO) multiple in the peer group.
Behind Coeur Mining’s Free Cash Flow Drivers in 2H17
Coeur Mining’s (CDE) management is focused on generating significant FCF (free cash flow). It generated FCF of -$8.2 million in 2Q17.
Analysts Are Optimistic about Coeur Mining
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) […]
Why Silver Miners’ Stock Performance Has Diverged in 2017
It’s important for investors to keep tabs on analysts’ recommendations and ratings, as they are market sentiment indicators. In this series, we’ll look at recommendations and ratings for silver miners.
Inside Silver Mining Stock Ratings: What Led the Downgrades
BMO Capital Markets, Credit Suisse (CS), RBC Capital Markets, TD Securities, and Macquarie have all downgraded Tahoe Resources stock.
What Celanese’s Falling Interest Expense Trend Suggests
At the end of 1Q17, CE’s interest coverage ratio stood at 9.24x, indicating that Celanese can easily service its debt.
Factors That Could Drive Silver Miners’ Valuations in 2017
Coeur Mining (CDE) is trading at a forward EV-to-EBITDA multiple of 6.9x, the lowest multiple in the peer group.
How Silver Miners Rank Based on Debt Repayment Capacity
Coeur Mining (CDE) has a net debt-to-forward-EBITDA ratio of 0.40x, which seems comfortable. Hecla Mining’s (HL) ratio is slightly higher at 1.3x.
Silver Miners’ Financial Leverages after 1Q17 Results
While most silver producers have been significantly deleveraged over the past several months, Hecla Mining (HL) has been slow to deleverage.
Huntsman and Clariant Agree to Merge
On May 22, 2017, Huntsman (HUN) and Clariant announced that their respective boards have approved a merger to form a new entity called HuntsmanClariant.
Huntsman Increases Price of Titanium Dioxide across Regions
On May 8, 2017, Huntsman’s (HUN) spinoff division Venator announced a price increase for its titanium dioxide pigments.
Analyzing Silver Miners’ Relative Valuations
Precious metals miners with substantial exposure to silver are usually classified as silver miners.
Silver Miners in 2017: Gauging Market Sentiment
Market sentiment So far in this series, we’ve analyzed silver miners’ key operating and financial metrics. In this part, we’ll look at the market sentiment toward these companies. We’ll also look at analysts’ recommendations, target prices, and potential upsides for silver miners (SIL). Analysts’ favorite Among all primary silver producers (SIL), Tahoe Resources (TAHO) seems […]
Comparing Silver Miners’ Valuation
Valuation The EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple is a good measure for capital-intensive industries because it helps investors compare companies with various capital structures. The chart above compares silver miners’ EV-to-forward-EBITDA multiples to their EBITDA margins in 2017. Remember, EV refers to the total market value of a […]
Comparing Silver Miners’ Free Cash Flow
Free cash flow The generation of FCF (free cash flow) is important for precious metal mining companies (GDXJ) (SIL). It helps them invest in projects that can drive long-term value, optimize their financial leverage, and provide shareholder returns. Silver mining companies are constantly trying to reduce their costs in order to generate FCF. Hecla Mining (HL) delivered […]
Which Silver Miner Needs to Work on Its Liquidity?
Financial liquidity Previously in this series, we analyzed the financial leverage of five silver mining companies. Financial leverage only considers the long-term[1. more than one year] solvency of a company, whereas financial liquidity checks short-term[2. less than one year] cash outflow and inflow. Amid weak commodity prices, short-term liquidity could come under more pressure. Current ratio […]
What Could Drive Silver Miners’ Cost Reduction in 2017
Cost discipline Cost discipline and lower cost assets are critical for silver miners (RING) (SIL). They help miners navigate low metal price environments, while improving margins and free cash flow in times of high metal prices. In a commoditized business such as mining, cost efficiency differentiates miners based on long-term premiums and performance. Improving costs […]
Looking at Silver Miners’ Financial Leverage after 4Q16
Leverage ratios Investors in the precious metal mining industry need to know companies’ debt levels. High debt can strain a company’s credit rating. It’s important to know that during an industry downturn, companies with higher leverage usually underperform. However, if metal prices recover, companies with higher leverage ratios can outperform those with lower leverages. This […]
Comparing Silver Miners’ Reserves
Reserve replacement Precious metal miners (SIL) (GDXJ) face the problem of compensating for every ounce they take out of the ground. While mines have finite lives, companies operating them don’t, so it’s important to look at miners’ reserves and resource estimates and the assumptions used to calculate them. Reserve additions Coeur Mining (CDE) reported a […]
Reaching for Growth: Charting Silver Miners’ Exploration Spending
Long-term sustained growth After years of cutting back on sustained capital expenditure, silver miners (SIL) have started to refocus on production growth. Increased exploration and capital expenditure budgets have been the key themes of miners’ earnings in 2016. Sustained growth is one of the prerequisites for sustainable outperformance over the long term. Focus on exploration sharpening […]
What Silver Miners Expect for Production in 2017
Higher guidance for 2017 Hecla Mining (HL) recorded strong silver production growth of 9% and gold production growth of 5% YoY (year-over-year) in 4Q16. For fiscal 2017, the company has guided for silver production of 46.5 million–49.4 million ounces of silver equivalent, which implies YoY growth of 4%. This guidance is due to higher expected […]
This Silver Miner Has the Highest Geographic Risk among Peers
Geographic exposure Due to rising taxes, royalties, changes to mining codes, and asset nationalizations in the past few years, many big mining projects have been rendered uneconomical. Investors and miners have become wary of geographic exposure to risky mining jurisdictions. High geopolitical risk The above graph shows the revenue contribution from different geographies for silver miners […]
A Look at Silver Miners’ 2016 Commodity Exposure
Commodity exposure In the previous part of this series, we looked at miners’ geographic exposure, which is important to consider due to the geopolitical risks some jurisdictions face. It’s equally important to consider their revenue compositions in terms of commodity exposure. Contribution from silver Silver companies are rarely pure-play miners. For investors considering silver […]
Silver Shines Brighter Than Gold: How Are Silver Miners Doing?
In this series, we’ll look at various factors affecting precious metal miners, and why some miners have fared better than others this year.
A Look at Technical Indicators for Coeur Mining and Its Peers
Coeur Mining and its closest peers are currently trading below their 20-day and 50-day moving averages.
Coeur Mining and Its Peers: Closing the Valuation Gap in 2017
Coeur Mining (CDE) is trading at a forward EV-to-EBITDA multiple of 5.3x. That’s the lowest among its peer group (SIL).
Can Coeur Mining Generate Positive Free Cash Flow in 2017?
Coeur Mining’s (CDE) management is focused on generating significant FCF. In 4Q16, FCF was -$4.5 million after having positive FCF in the first two quarters.
What’s behind Coeur Mining’s Underperformance Year-to-Date?
Coeur Mining (CDE) was one of the most successful mining stocks in 2016, rising more than 268.0%. In 2017, its has become one of the worst performers.
Looking at Silver Miners after the Federal Reserve’s Rate Hike
Silver miners (SIL) are usually a levered play on gold. Notably, silver has outperformed gold year-to-date.
What’s Affecting Ratings for Silver Miners as We Enter 2017?
Precious metal miners with substantial exposure to silver have performed quite well in 2016. Silver miners are essentially a leveraged play on silver.
Latest Rating Changes for Silver Miners: What Do They Mean?
Raymond James cut its target price for Coeur Mining (CDE) from $16.50 to $11.75 on December 22, 2016. Deutsche Bank cut its target price from $11 to $10.50.
Which Silver Miners Could Re-Rate as We Enter 2017?
First Majestic Silver is trading at the highest EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple among its peers at 12.3x.
What Do Coeur Mining’s Technical Indicators Point To?
Coeur Mining and its closest peers are currently trading below their 20-day and 50-day moving averages.
How Has the Analyst Sentiment Changed for Silver Miners?
Among primary silver miners, Tahoe Resources (TAHO) seems to be an analyst favorite, with the highest “buy” ratings at 100% and no “sell” ratings.
Understanding the Debt Repaying Capacities of Silver Miners
High debt isn’t always bad if a company has the capacity to pay back its debt with its earnings.
Inside Silver Miners’ Financial Leverage after 3Q16
Investors in the precious metal mining industry need to know a company’s debt levels because high debt can strain a company’s credit rating.
Understanding the Long-Term Growth Drivers for Silver Miners
After years of cutting back on sustained capital expenditure, silver miners—like their gold mining peers—have started to refocus on production growth.
Silver Miner Production Growth: The Outlook for 4Q16
Hecla Mining (HL) recorded strong 67% silver production growth and 19% gold production growth YoY (year-over-year) in 3Q16.
Which Silver Miner Offers Optimal Geographic Exposure?
Given rising taxes, royalties, changes to mining codes, and asset nationalizations in the past few years, many big mining projects have become uneconomical.
Which Silver Miners Offer Diversified Exposure to Commodities?
For investors considering silver stocks due to their leveraged exposure to silver prices, the higher the company’s revenues derived from silver, the better.
Why Did Silver Outperform Gold in 2016?
While the last two months of 2016 chipped away a large part of the gains made by precious metals, silver outperformed gold on a yearly basis.
Which Miners Could Offer a Valuation Upside in the Silver Space?
Precious metal miners with substantial exposures to silver are usually classified as silver miners.
Sibanye Gold to Acquire Stillwater Mining: What Are the Benefits?
On December 9, 2016, Sibanye Gold (SBGL) announced that it has entered into an agreement with Stillwater Mining (SWC) to acquire all its stock for $18 per share in cash.
What Are the Key Catalysts for Coeur Mining’s Stock Valuation?
Coeur Mining (CDE) is trading at a 2017 EV-to-EBITDA of 5.1x. This is the lowest among its peer group
Which Silver Stock Is Seeing Upgrades These Days?
On October 3, 2016, Deutsche Bank (DB) upgraded Coeur Mining (CDE) from “sell” to “hold.” The firm also increased its target price from $7.50 to $11.
As Silver Outperforms Gold, How Do Analysts View Silver Miners?
Precious metal miners with substantial exposure to silver have performed quite well YTD (year-to-date) since silver has outperformed gold.
Should You Bet on Silver Miners as the Fed Sparks Gold?
Precious metals miners with substantial exposures to silver are usually classified as silver miners. Tahoe Resources, Coeur Mining, and Pan American Silver are a few.
Analyzing Market Sentiment: Which Silver Miner Do Analysts Favor?
So far in this series, we’ve analyzed the key operating and financial metrics for silver miners. Here, we’ll look at market sentiment for these companies.
Coeur Mining’s Trying to Improve Its Financial Health: Here’s How
While precious metal prices have remained buoyant since the start of the year, miners are leaving no stone unturned in their mission to prune their balance sheets wherever possible.
Silver Miners: Which Stocks Have Comfortable Liquidity Profiles?
While financial leverage is important in gauging a company’s long-term solvency, short-term liquidity profiles are also important. In a weaker commodity price environment, short-term liquidity might come under more pressure.
Which Silver Miners Could Have an Upside to Cost Guidance in 2016?
In a commoditized business such as mining, cost efficiency differentiates miners based on command premium and outperformance over the long term.
Which Silver Miners Can Deliver Production Growth in 2016?
Hecla Mining (HL) recorded strong 71% silver production growth and 41% gold production growth year-over-year in 2Q16.
Should You Worry about Tahoe Resources’ Geographic Exposure?
Due to rising taxes, royalties, changes to mining codes, and asset nationalizations in the last few years, many big mining projects have been rendered uneconomical.
Silver Miners’ Commodity Exposure: What You Need to Know
In the previous part of this series, we looked at miners’ geographic exposure—which is important to consider, given the geopolitical risks some jurisdictions face.
Why Have Coeur and Hecla Outperformed in 2016?
Along with gold, silver has risen as one of the best-performing metals in 2016. Here’s what you need to know.
Coeur Mining’s Valuation Going Forward: What’s the Key?
Coeur’s EBITDA margin is only higher than PAAS. This is mainly due to higher costs, which results in a lower valuation multiple.
Silver Stocks: Keeping Up with Analyst Rating Changes
Following the recent strong run in silver (SLV), several analysts have commented on silver miners (SIL), as we’ll see in this part of the series.
As Silver Outshines Gold, Which Silver Miners Are in Favor?
Precious metal miners with substantial exposure to silver have also performed quite well year-to-date, as silver has outshined gold.
What Could Drive Estimates Higher for Pan American Silver?
Being a high-cost producer, Pan American Silver had EBITDA margins of just 10.5% in 2015, which is the lowest among its peers.
What’s Driving Analysts’ Estimates for Tahoe Resources?
Tahoe is an intermediate precious metals producer with high-quality assets in attractive mining jurisdictions and a strong growth profile.
Tahoe Resources Is an Analyst Favorite
Among all the primary silver producers (SIL), Tahoe Resources (TAHO) seems to be an analyst favorite.
How Are Silver Miners Doing as Silver Outshines Gold?
Silver has outperformed gold year-to-date (or YTD). The SPDR Gold Shares ETF (GLD) has risen 17% YTD, while the iShares Silver Trust ETF (SLV) has risen 24%.
Why Goldcorp Plans to Acquire Kaminak Gold
On May 12, 2016, Goldcorp (GG) announced the acquisition of Kaminak Gold (KMKGF) for 520 million Canadian dollars in a share swap transaction.
How Are Silver Prices Influencing Major Silver Miners?
Silver miners have shown a significant correlation to gold prices at 0.90 since the start of 2013. Silver prices have a strong correlation as well.