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Aug. 21, 2015, 9:15 AM
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. 20, 2015, 12:45 PM
Aug. 20, 2015, 9:14 AM
Aug. 17, 2015, 9:15 AM
Aug. 17, 2015, 8:28 AM
- A focus on costs looks to be working with Q2 production of 1.007Moz at a total cash cost of $718 per ounce vs. 1.098Moz at a cost of $833 per ounce a year earlier. Guidance had been for just under 1Moz at $770-$820 per ounce.
- All-in sustaining costs (AISC) of $928 per ounce fell from $1,052 a year earlier.
- Adjusted EBITDA of $391M vs. $372M a year ago, even as gold price received fell 8% and production slipped.
- Gold production for Q3 is expected at 900K-950K ounces, with total cash cost of $770-$820 per ounce.
- Previously: AngloGold Ashanti reports Q2 results (Aug. 17)
- AU +8.8% premarket
Aug. 17, 2015, 6:16 AM
- AngloGold Ashanti (NYSE:AU): Q2 net income of $26M
- Revenue of $1.01B (-19.2% Y/Y)
Aug. 13, 2015, 9:19 AM
Aug. 3, 2015, 11:38 AM
- South Africa's second biggest gold miner's union rejected a pay offer over the weekend made by operators including AngloGold Ashanti (AU -1.9%) but stopped short of calling a strike.
- AU and Sibanye Gold (SBGL -5.1%) proposed on July 30 to raise monthly pay for entry-level workers by 1,000 rand/year ($79) for the three years starting July 1, while Harmony Gold (HMY -3.4%) offered a 500-rand increase.
- The AMCU union is demanding 12.5K rand/month for basic pay, more than double the current basic pay of ~5,800 rand, while the National Union of Mineworkers lowered its demand last month to 9.5K rand/month, still at least 60% more than the current wage.
- AU, SBGL and HMY are at or near 52-week lows in today's trade as gold futures prices continue to fall further below $1,100/oz.
Jul. 24, 2015, 9:17 AM
Jul. 20, 2015, 10:39 AM
- Several gold miner stocks strike new 52-week lows in early trading, as gold prices plunge below $1,100/oz. overnight and adding pressure to a sector that already faces razor-thin margins.
- Investors have turned sharply negative on gold as the U.S. dollar rises ahead of a likely rise in interest rates, and a report out of China shows lower than expected holdings of the metal.
- While most senior gold miners can generate decent margins at $1,100 gold, many small and mid-tier producers are underwater at the price, and some of the seniors are struggling with heavy debt.
- Hitting new 52-week lows today: ABX -9.3%, GG -7.7%, GFI -10.7%, KGC -9.4%, AGI -6.6%, AU -9.7%, SBGL -7.8%, BTG -9.3%, EGO -2.9%, NGD -8%, AUY -8.8%, RGLD -8.2%, FNV -6.8%, SLW -5%.
- Also lower: NEM -9.4%, AEM -7.9%, NG -7%, GOLD -4.8%, IAG -5.1%, HL -5.4%.
- ETFs: GDX, NUGT, GDXJ, GGN, DUST, SIL, JNUG, GLDX, JDST, SGDM, ASA, SLVP, SILJ, RING, JUNR, PSAU, TGLDX, GDJJ, GDXS, GDXX, GDJS
Jul. 20, 2015, 9:14 AM
Jul. 17, 2015, 2:58 PM
- Barrick Gold (ABX -4.9%) sinks to 24-year lows in Toronto trading, leading a rout among bullion miners as the yellow metal extends its selloff to five-year lows.
- ABX is under particular pressure, as the fall in gold casts doubt on the company’s strategy of shedding assets to pay down its $12.9B debt, as it "becomes harder and harder to sell those assets at any kind of reasonable value if metal prices are unwinding," Macquarie analyst Ron Stewart says.
- ABX reportedly is nearing a deal to sell its Zaldivar copper mine in Chile, and is looking for buyers for its 50% stake in its Kalgoorlie mine, among other properties.
- NEM -2.6%, GG -5.7%, GFI -1.1%, KGC -5.2%, AEM -5.1%, NG -2.2%, AGI -6.6%, AU -5.7%, GOLD -2.5%, SBGL -4.2%, BTG -6.4%, IAG -7.6%, EGO -7.6%, HL -3.5%, NGD -8.4%, AUY -2.9%, RGLD -2.9%, FNV -3.6%, SLW -3.3%.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, SGDM, ASA, SLVP, RING, PSAU, TGLDX, GDXS, GDXX
Jun. 22, 2015, 8:19 AM
- South Africa's major gold miners, including AngloGold Ashanti (NYSE:AU), Harmony Gold (NYSE:HMY) and Sibanye Gold (NYSE:SBGL), have begun talks with labor unions to discuss wage increases and other employment conditions.
- The process is expected to drag on for weeks or even months, while any strike action could further hurt the bottom lines of the country’s already-struggling mining companies amid weak gold prices and soaring electricity costs due to frequent power outages.
- Unions represent more than 80% of South Africa’s gold workers and say the companies can afford an increase of more than 80% in the basic monthly pay of entry-level underground miners.
- HMY -6.2%, AU -1.1% premarket.
Jun. 18, 2015, 12:46 PM
- Newmont Mining (NEM +1.6%) is reiterated with a Buy rating and $29 price target at Citigroup following its recent acquisition of the Cripple Creek & Victor gold mine from AngloGold (AU +4.3%).
- Citi cites NEM’s free cash flow generation profile at $1,200/oz. gold and further debt reduction opportunities, and says the transaction appears earnings accretive by 3.2% in 2016 while free cash contribution is not expected until 2017.
- NEM's decision to fund the sale by issuing equity was attributed to the need for capital to finish funding growth projects and desire to pay down $750M of debt this year, but the firm forecasts NEM will still generate $600M-plus/year in free cash flow (after project capex) from 2015-17 at $1,200/oz. gold.
Jun. 9, 2015, 10:23 AM
- AngloGold Ashanti (AU +8.5%) surges at the open following the sale of its Cripple Creek & Victor mine to Newmont Mining (NEM -1.5%), ending speculation it would have to issue shares in its effort to cut $3.1B in debt.
- CEO Srinivasan Venkatakrishnan says the sale of the Colorado mine for $820M plus 2.5% of future gold production will reduce AU’s net debt to its target level of 1.5x earnings.
- Proceeds from the sale represent ~25% of AU’s market value, while the asset produced less than 5% of the company’s gold, the CEO says, adding that the sale will save $200M on capital spending in the next two years.
- The sale benefits NEM too, Sterne Agee analysts say, adding a large long-life mine to its U.S. profile with expansion potential, improving geographic mix, lowering NEM's overall all-in sustaining costs profile, and appearing accretive on a production per share basis.
- However, Jefferies says the fact that NEM is funding the acquisition with an equity issue may indicate that NEM shares are overvalued.
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