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Overall country risk improving for gold miners, J.P. Morgan says

  • 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
Comments (7)
  • minecanary
    , contributor
    Comments (488) | Send Message
     
    I'd say this article is a couple weeks late since the world has just shifted again. China will end up controlling the African mines and maybe some of the S. American ones. The U.S. will probably end up w/the Canadian and C. American mines. The metals price (and miners) is about to go sky high but may not do anybody any good as gov'ts will just confiscate the mines as soon as China introduces a gold backed yen.
    6 Mar, 01:00 PM Reply Like
  • filipo
    , contributor
    Comments (3680) | Send Message
     
    canary in the mine,
    Seems you are right.
    What the hell is going on ?
    USD plunges and gold skyrockets.
    Is this the ultimate revenge of the miners ?
    6 Mar, 03:37 PM Reply Like
  • vegas boomer
    , contributor
    Comments (7) | Send Message
     
    Yes it is! My neck hurts because there are too many cheap miners to analyze! This is a once in a generation opportunity!
    6 Mar, 11:20 PM Reply Like
  • minecanary
    , contributor
    Comments (488) | Send Message
     
    I think this is a lot bigger play then just the miners...just as pushing Putin will be a lot tougher then whooping up on Gadhafi or Morsi. Obama is running his mouth, for all it's worth, like Draghi jawboning but somebody is in for a major fold. I think it will be the U.S. since Europe has too much skin in the game. If China jumps in on the Russian side or lands a rowboat on the Jap islands, gold will be at 5K by morning.
    6 Mar, 05:27 PM Reply Like
  • minecanary
    , contributor
    Comments (488) | Send Message
     
    By the way the market is going straight up w/all the news being bad, everybody has to be betting Yellen halts the taper or even more likely, the Fed is buying the index so they don't have to reverse course (yet).
    6 Mar, 05:31 PM Reply Like
  • Ninja Trader
    , contributor
    Comments (929) | Send Message
     
    Country risk improving? What fantasy land is JPM living in? Oh, that's right, the one where they can screw everyone over and laugh all the way to the bank...pun intended. When the sh*t hits the fan, it'll be everyone for themselves...something they already know too well.
    6 Mar, 08:31 PM Reply Like
  • june1234
    , contributor
    Comments (2705) | Send Message
     
    Rising rates, tapering ,when 14 is in the books miners will be remembered as one of the trades of the year I think
    7 Mar, 01:24 AM Reply Like
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