- One of the biggest risks to gold miners - aside from lower gold prices - has been country risk where the companies house their mines, but overall country risk is improving, according to a J.P. Morgan analysis.
- The average Fraser PPI score improved for miners in its coverage area, the firm says, as the weighted average of scores using regional NPVs at 5% discount improved 9% over the last survey.
- Newmont Mining (NEM +0.9%) enjoys a boost from Peru’s score, which rose from 42 to 48.5, and from improvements in Africa, as “investors get more comfortable with mining in less developed countries,” J.P. Morgan says.
- Barrick Gold (ABX +0.3%) also could benefit from improvement in Peru; Argentina deteriorated but could be on the verge of changing this year, which also would give Goldcorp’s (GG +0.5%) prospects a boost.
- ETFs: GDX, GDXJ, NUGT, DUST, GLDX, JNUG, RING, GGGG, JDST, PSAU
at Zacks.com (Nov 18, 2014)