Aug. 22, 2013, 9:13 AM
Aug. 22, 2013, 8:28 AM
- South Africa's labor unrest is spreading, as tens of thousands of construction workers prepare to lay down their tools next week and gold mining unions plan to call a strike over wages.
- The National Union of Mineworkers says it will consult members in the coming days to discuss strike action; NUM represents ~64% of ~140K South African gold miners, where major operators include AngloGold (AU), Gold Fields (GFI), Harmony (HMY) and Sibanye Gold (SBGL).
- A construction stoppage would affect major companies such as Wilson Bayly Holmes Ovcon, Aveng (AVEPY.PK) and Group Five.
Aug. 22, 2013, 8:18 AM
- Barrick Gold's (ABX) $300M sale of three mines in Western Australia to rival Gold Fields (GFI) is the start of its promised restructuring, allowing it to concentrate on its five lower-cost mines that already make up 60% of output.
- The three mines that comprise the Yilgarn South assets produced a total of 452K oz. of gold in 2012 and a further 196K oz. in H1 of this year, but ABX says the sale will not change its full-year plan to produce 7M-7.4M oz.
- The move switches GFI's main production focus away from western Africa to Australia, where it will bundle assets with its existing mines to try to lower costs.
- ABX +1.6%, GFI -6.5% premarket.
Aug. 22, 2013, 6:07 AM
- Gold Fields (GFI): Q2 EPS of -$0.18 misses by $0.28.
- Revenue of $637M. (PR)
Aug. 22, 2013, 3:16 AM
- Gold Fields (GFI) Q2 net loss $129M vs profit $27M in Q1, hurt by fall in gold prices and impairments.
- Loss per share $0.18 vs EPS of $0.04.
- Adjusted loss $36M vs $68.3M.
- Output -5% on quarter to 451,000 ounces at a total all-in cost of $1,572 an ounce. Average gold price $1,405 an ounce.
- Expects to produce 1.83-1.9M ounces of gold this year.
- Gold Fields is unlikely to achieve its 2016 target for annual output of 700,000 ounces at its South Deep mine in South Africa.
- Agrees to buy three Australian mines from Barrick Gold (ABX) for $300M.
- Cancels dividend. (PR)
Aug. 21, 2013, 5:37 PM
Aug. 19, 2013, 10:35 AM
- AngloGold (AU -5%) shares sink after a National Union of Mineworkers spokesman tells Bloomberg the wage-offer gap between gold producers and labor groups in South Africa appears too wide to resolve, saying "I smell a strike in the air."
- Wage negotiations stalled July 24 after the unions rejected an offer of a 5% pay increase and a housing-related allowance.
- GFI -1.7%, HMY -0.7%, SBGL -3.8%.
Aug. 13, 2013, 9:43 AM
- The recent sharp slide in AngloGold (AU -1.8%) bonds reignites calls from investors for the miner to spin off burdensome South African assets.
- Yields on AU’s dollar debt due July 2020 surged 117 bps since being sold on July 25 to a record 9.59% on Aug. 7, while the average yield on dollar bonds of emerging market metals and mining companies rose 18 bps.
- AU hasn’t heeded calls to spin off assets in South Africa, which is beset with strikes and higher costs; Gold Fields (GFI -4.7%) put most of its South African mines in a new company in February, a strategy that activist shareholder John Paulson has said AU should copy.
Aug. 12, 2013, 9:28 AM
- Gold and silver mining stocks are trading higher after the SPDR Gold ETF (GLD +2.1%) logs its first increase in holdings since June: HMY +4%, EGO +3.7%, IAG +3.6%, AUY +3.4%, HL +3%, GDX +2.6%, KGC +2.5%, SLW +2.4%, ABX +2.2%, SLV +2%, GFI +2%, NEM +1.7%.
- December Comex gold +2.2% to $1,341.50/oz.
- ETFs: GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING, SIL, SILJ, SLVP.
Aug. 8, 2013, 9:35 AM
- South African miners AngloGold Ashanti (AU +0.8%), Harmony Gold (HMY +0.3%) and Sibanye Gold (SBGL +3.2%) are cut to Sell from Hold at HSBC, which says lower gold prices are cutting margins.
- Foreseeing a 12-month period of "momentous pressure" on the industry, the firm expects "extremely tough operating conditions given the current tensions between management and labor, as wage negotiations enter dispute, and the negative implications of potential restructuring on industry jobs."
- Gold Fields (GFI +0.5%), which spun off SBGL earlier this year, is HSBC’s preferred South African gold miner with a Hold rating.
Jul. 26, 2013, 12:18 PM
Gold is falling and taking gold mining stocks with it, but South Africa’s miners have it worse: HMY -5.8%, SBGL -5.6%, AU -3.4%, GFI -1.9%. The fractious nature of labor relations and the potential for another violent incident is the biggest of many problems, Barclays writes, and getting it right is critical for the country; the sector accounts for 5% of real value added directly and 18% indirectly.| Jul. 26, 2013, 12:18 PM
Jul. 24, 2013, 3:34 PM
Gold prices (GLD -1.7%) suffer their biggest single-session drop in nearly three weeks, pressured by strength in the U.S. dollar and a surge in new U.S. home sales last month. It's a bad day for the miners (GDX -6.2%) too: ABX -6.3%, GFI -4.8%, GG -5.8%, NEM -5.6%, KGC -6.1%, NGD -3.4%, EGO -6.4%, AUY -6.6%, AEM -7.6%. Silver miners (SIL -5.4%): SLW -4.7%.| Jul. 24, 2013, 3:34 PM | 12 Comments
Jul. 22, 2013, 10:14 AMMetal miners is the strongest sector in early trading as gold futures climb as high as $1,325/oz.: GDX +4.9%, GDXJ +5.8%, NUGT +15.1%. Newmont Mining (NEM +4.6%) tops all S&P 500 gainers; also RGLD +6%, ABX +5.3%, GG +4.6%, KGC +4.6%, BVN +4.2%, GFI +3.8%. Silver miners (SIL +4.4%): CDE +7%, SLW +5.6%, HL +3.2%. | Jul. 22, 2013, 10:14 AM | 5 Comments
Jul. 16, 2013, 3:18 PM
Gold (GLD +0.4%) gains again, sending the price to a 3-week high of $1,290/ounce and the miners (GDX +4.2%), (PSAU +3.3%) are responding. "Never let a serious crisis go to waste," says the JPMorgan team, paraphrasing Rahm Emanuel. The bear market is forcing managements to not only cut costs, but to consider restructuring from "a shape that was optimized for the 12 year bull market in gold to one that is more suited to a future with less available liquidity." Barrick (ABX +5.2%), Goldcorp (GG +3.9%), Gold Fields (GFI +4.4%), NovaGold (NG +3.2%). Don't forget the silver miners (SIL +3.1%): Hecla (HL +4.5%), Silver Wheaton (SLW +3.9%), Coeur (CDE +5.8%).| Jul. 16, 2013, 3:18 PM | 3 Comments
Jul. 11, 2013, 10:09 AMThe materials sector is a big early outperformer, showing all-around strength among steelmakers (SLX +3.4%) and gold miners (GDX +5%) after Bernanke indicated the Fed is unlikely to scale back stimulus earlier than expected. GFI +8.4%, ABX +6%, RIO +5.9%, GG +5.2%, SLW +5.1%, BHP +5.1%, MT +5%, HL +4.6%, SLV +4.8%, HL +4.8%, CLF +4.5%, NEM +3.4%, FCX +3.2%, X +2.4%. | Jul. 11, 2013, 10:09 AM | 3 Comments
Jul. 11, 2013, 9:11 AM