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Oct. 14, 2015, 2:26 PM
- Gold settles at three-and-a-half month highs, rallying $14.50 (+1.2%) to $1180/oz., as soft U.S. economic data and concerns over deflationary pressures in China add to expectations the Fed will delay any interest rate increases.
- Gold is gaining more ground in electronic trading after the Fed Beige Book release.
- The yellow metal's eighth gain in nine sessions has sent the SPDR Gold Trust ETF (GLD +1.5%) past its 200-day moving average, and gold miners have ripped higher, as evidenced by this month's 18% gain in the Market Vectors Gold Miners ETF (GDX +5.6%).
- Top mining stocks including Barrick Gold (ABX +7.9%), Goldcorp (GG +8.5%), Kinross Gold (KGC +8.3%), Gold Fields (GFI +5.4%), Newmont Mining (NEM +5.4%), Agnico Eagle Mines (AEM +5.7%), Silver Wheaton (SLW +6.8%), Yamana Gold (AUY +6.7%), Franco Nevada (FNV +5%), Randgold (GOLD +4.8%) and AngloGold (AU +5.6%) are all sharply higher.
- Other ETFs: NUGT, AGQ, GGN, DUST, SIL, USLV, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, SLVO, GLDI, SGDM, DSLV, ASA, SLVP, DGL, DBS, DGZ, RING, DGLD, PSAU, USV, TGLDX, GEUR, UBG, GYEN
Oct. 8, 2015, 12:46 PM
- Mining companies operating in Zambia ask the government to set mineral royalties for both underground and open pit operations at 6% to mitigate the negative impact of falling copper prices on the industry.
- The government of Africa's second leading copper producer already cut mineral royalties for underground mines to 6% from 9% and those of open cast mines to 9% from 20% following an outcry by mining firms.
- Glencore's (OTCPK:GLCNF, OTCPK:GLNCY) Zambian unit has said it plans to lay off more than 3.8K workers due to lower metal prices and high production costs; other foreign mining companies operating in Zambia include First Quantum Minerals (OTCPK:FQVLF), Barrick Gold (NYSE:ABX) and Vedanta Resources (OTCPK:VDNRF).
Oct. 1, 2015, 6:51 PM
- A cyanide solution spill at Barrick Gold's (NYSE:ABX) Veladero mine in Argentina did not contaminate local water supplies, according to preliminary tests by U.N. investigators.
- The Sept. 13 leak prompted a court order that forced ABX to temporarily halt pumping the cyanide solution used in the leaching process; the ban was lifted last week.
- Veladero produced 722K oz. of gold last year and is expected to contribute ~10% of ABX's 2015 gold output.
Sep. 25, 2015, 11:43 AM
- Barrick Gold (ABX -1%) says restrictions on processing activities at its Veladero mine in Argentina have been lifted and does not expect any material impact to production as a result of a leak earlier this month.
- An Argentine judge yesterday lifted his order forbidding ABX from pumping cyanide solution for the leaching process in the mine, saying a leak had not contaminated water in the surrounding area.
- The Veladero mine produced 722K oz. of gold last year and is forecast contribute ~10% of ABX's 2015 gold output.
Sep. 22, 2015, 6:15 PM
- Indonesian government officials say Newmont Mining's (NYSE:NEM) copper export permit, which expired today, will not be renewed since the miner has failed to meet government stipulations for developing a domestic smelter.
- NEM CEO Gary Goldberg says the company is in talks with the government and has filed an application with the requested information; the CEO says he expected it would take "a couple of weeks" to sort out, but in the meantime operations are continuing at full capacity.
- Separately, Goldberg says NEM is not interested in buying the U.S. assets Barrick Gold (NYSE:ABX) has put up for sale, but would consider ABX's 50% stake in the Kalgoorlie mine in Australia at the right price.
- Earlier today, Goldcorp CEO Chuck Jeannes also said his company was not looking at ABX's U.S. assets.
Sep. 22, 2015, 12:36 PM
- Goldcorp (GG -3.4%) reiterates 2015 production estimates at the upper end of its 3.3M-3.6M oz. guidance range, as Latin American mines help counter minor setbacks at its newest operation in Canada.
- Earlier this month, GG cut its production forecast for the Eleonore mine in Quebec, citing higher than expected folding, but CEO Chuck Jeannes now adds that only a small percentage of the ore body is being affected as other mines perform well.
- The CEO also is “very comfortable” with GG's $1.2B-$1.4B capex guidance, as well as an all-in sustaining cost forecast of $850-$900/oz.
- Also, while Jeannes says he always keeps an eye open for acquisition opportunities, the U.S. mines being marketed by Barrick Gold (ABX -5.6%) would not be the kind of assets he would find attractive.
Sep. 21, 2015, 8:26 AM
- Barrick Gold (NYSE:ABX) has seen strong interest in a package of U.S. gold assets it is trying to sell, President Kelvin Dushnisky says, expecting a deal to close before year-end.
- Newmont Mining (NYSE:NEM) and Kinross Gold (NYSE:KGC) are considered likely buyers of the assets, Reuters reports.
- ABX said last month it wanted to sell six of its U.S. gold mines and projects: Bald Mountain, Round Mountain, Spring Valley, Ruby Hill, Hilltop and Golden Sunlight.
- If done before year-end, the sales would enable ABX to exceed its $3B debt reduction target following other asset disposals and financings, including a recent streaming deal on its Pueblo Viejo mine in the Dominican Republic.
- Dushnisky says he is not concerned about the possibility of ABX slipping into junk status; ABX is rated at the lowest investment grade by S&P and Moody’s, although both have stable outlooks.
Sep. 18, 2015, 3:18 PM
- Barrick Gold’s (ABX -2.2%) credit rating could be at risk if gold prices remain near $1,100/oz., RBC analyst Stephen Walker contends, as the miner's YTD divestments and debt repayment do not lead to a meaningful improvement in his estimates of long-term debt relative to EBITDA over the 2015-18 period.
- RBC cuts its stock price target to $8 from $10 due to its lower copper price forecasts and other model revisions that reduce ABX's net asset value by ~25%, also noting that asset sales could reduce gold production from 7.4M oz. in 2012 to 4.7M oz. by 2018 (Briefing.com).
- Separately, ABX says it will close its Salt Lake City office by the end of November, cutting loose more than 100 employees, and dissolve a standalone copper unit, as it continues to cut costs.
Sep. 17, 2015, 11:50 AM
- An Argentine judge orders a five-day suspension of the gold leaching process at Barrick Gold's (ABX -1.8%) Veladero mine to check for any environmental damage from a cyanide leak triggered by a faulty valve.
- The judge says he took action to ensure that production at Veladero, one of the largest gold mines in Argentina, was safe.
- ABX says it had detected no contamination in surrounding rivers since the leak happened over the weekend, and does not yet expect any material impact on production at the mine.
Sep. 16, 2015, 3:45 PM
- Newmont Mining's (NEM +5.8%) stock price target is lowered to $22 from $24 by RBC analysts on the back of downward revisions to base metal price assumptions, including a ~15% reduction to the firm's 2015-19 average copper price assumptions.
- NEM has significant leverage to copper prices through its Batu Hijau, Boddington and Phoenix mines, prompting the firm to reduce its EPS and cash flow/share estimates.
- But for today at least, shares of gold miners are surging, following gold prices higher as optimism grows that the Fed will not raise rates tomorrow: ABX +7%, KGC +9.2%, GG +5.3%, AEM +6.9%, GFI +3%, SBGL +2.4%, FNV +4.7%, NGD +7.1%, AUY +9.1%, IAG +7.6%, BTG +4.1%, EGO +9.7%, SLW +7.1%.
Sep. 2, 2015, 5:48 PM
- Lower copper prices could mean trouble for some gold miners, including Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), New Gold (NYSEMKT:NGD) and Buenaventura (NYSE:BVN), J.P. Morgan analysts warn.
- Gold has been under pressure but nevertheless shows relative strength, the firm says, while "perversely, copper had its own semi-investment demand when it was used for collateral lending, but if this category of demand falls away, prices could be weaker."
- JPM likes Goldcorp (NYSE:GG) and Agnico Eagle Mines (NYSE:AEM) for their production pipeline, but it cuts targets for ABX, NEM and BVN by a respective 14%, 15% and 20% due in part to their exposure to copper by-product credits.
Aug. 20, 2015, 2:29 PM
- Alongside interest rate sensitive names, the gold miners are well-bid as the major averages tumble.
- The yellow metal itself is higher by 2.15% to $1,152 per ounce.
- Gold Fields (GFI +15.1%), AngloGold Ashanti (AU +11.2%), Sibanye Gold (SBGL +11.3%), Alamos Gold (AGI +9.7%), IAMGOLD (IAG +6.1%), Randgold (GOLD +5.6%), Barrick (ABX +4.9%), Newmont (NEM +3.7%), Kincross (KGC +2.6%), Goldcorp (GG +3.2%).
Aug. 19, 2015, 9:48 AM
Aug. 19, 2015, 9:35 AM
- Macquarie has upgraded beaten-down Barrick Gold (ABX) to Neutral. The firm downgraded Barrick to Underperform on Jan. 9; shares had fallen 29% since.
- Barclays upgraded the gold miner earlier this month following its Q2 report and dividend cut, citing optimism Barrick will be able to pay down its debt obligations. Deutsche upgraded Barrick and other miners a few days later.
Aug. 12, 2015, 6:57 PM
- Barrick Gold's (NYSE:ABX) credit rating is downgraded by Moody’s by one notch to Baa3, the lowest investment-grade level, on concerns that asset sales will not be enough to reduce the miner’s ~$10B debt load with gold prices at five-year lows.
- The rating agency expects ABX’s adjusted financial leverage will range between 3x-3.5x through 2016, and sees capital spending remaining "below production maintenance levels" through the next couple of years so that it generates roughly breakeven free cash flow.
- So far this year, ABX has sold $2.45B in assets, including a 50% stake in the Porgera mine in Papua New Guinea to Zijin Mining.
Aug. 12, 2015, 3:46 PM
- China's moves to devalue the yuan and the potential for further devaluation have favorably shifted the risk/reward for stocks of precious metal miners, Deutsche Bank says as it upgrades Newmont Mining (NEM +6.1%) and Barrick Gold (ABX +5.2%) to Buy from Hold, citing improving balance sheets and share pullbacks the firm views as overdone compared to the move in gold prices.
- The firm notes 82% of ABX's and NEM's estimated 2016 revenues come from gold; Kinross Gold (KGC +2.8%) and Goldcorp (GG +4.9%) derive a respective 97% and 73% of their expected 2016 revenues from gold.
- Among silver miners, Deutsche Bank upgrades Pan American Silver (PAAS +6.1%) and Hecla Mining (HL +7.6%) to Buy from Hold, citing their cost exposures outside the U.S. and their respective 26% and 38% gold exposure.
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