From other sites
at CNBC.com (Tue, 12:56PM)
at Zacks.com (Mon, 3:09PM)
at Nasdaq.com (Mon, 12:49PM)
at CNBC.com (Fri, 1:12PM)
at Fox Business (Thu, 6:00PM)
at Zacks.com (Nov 12, 2014)
at CNBC.com (Nov 10, 2014)
at Zacks.com (Nov 3, 2014)
at Zacks.com (Nov 3, 2014)
at CNBC.com (Oct 30, 2014)
- Goldcorp recently withdrew its environmental impact study for El Morro copper-gold project in Chile.
- Goldcorp has good growth coming from Cerro Negro and Éléonore, and near-term gold production from Cochenour.
- Camino Rojo is advancing to the pre-feasibility stage, and that should be complete early 2016.
Update: Goldcorp Announces Dividend - The Significance To Shareholders
- Goldcorp has just announced its latest dividend of $0.05, in-line with its prior payout.
- As I predicted the dividend was maintained despite the serious cash burn in Q3.
- The commitment to the dividend is significant for shareholders who have suffered over the last few years and I maintain that we should do some buying as others panic.
Update: Goldcorp Withdraws Its Environmental Impact Study For El Morro
- Goldcorp just announced that it has withdrawn its EIS for El Morro as the company was not able to get government approval with the current plan.
- This should come as no surprise and I expressed concerns over this project in my recent article.
- Goldcorp has no near-term growth projects after Eleonore and Cerro Negro reach full production and shares remain overvalued.
Goldcorp Sinks To 6-Year Lows; Buying Opportunity On Tax Loss Selling
- Impairment charges at its Peñasquito and El Sauzal Mexican gold mines negatively affected earnings growth.
- Cerro Negro and Éléonore will play a big role in helping Goldcorp achieve its fourth quarter, and full-year production forecast.
- Tax loss related selling in December could provide an ample buying opportunity for those who want to own a gold, dividend paying stock.
What It Really Costs To Mine Gold: The Goldcorp Third Quarter Edition
- Goldcorp’s costs on both a core and a core non-tax basis rose significantly on a year-over year basis.
- This rise was due to increasing costs and lower gold-equivalent production due to operating issues at some of the company's mines.
- We expect production to rise again in upcoming quarters and capital spending to decrease into 2015.
- For gold investors, the fact that costs are well above the current gold price suggest that the current gold price is too low to be sustainable in the long-term.
- Goldcorp’s output slightly increased despite the lower-than-expected production at El Sauzal.
- Higher all-in sustaining cost slashed its profitability.
- The company will have to show a sharp rise in production to reach its annual production guidance.
- Goldcorp missed production and earnings estimates in Q3.
- Goldcorp has over 54 million ounces of gold reserves and over 800 million ounces of silver reserves.
- The stock appears expensive when compared to other big cap gold stocks based on its gold and silver reserves.
Alan Greenspan Is Bullish On Gold - Could Goldcorp Be The Opportunity?
- Greenspan argues gold is a good investment with QE coming to an end.
- Goldcorp shares tank after Q3 earnings disappointment.
- My assumptions in the Levered Returns valuation models yield a fair value per share of $22, 20% above GG’s October 31st closing price of $18.61.
- Goldcorp reports weak results and is free cash flow negative.
- This is a negative surprise as I was aiming for the company to be FCF positive this year.
- 2014 will be a ‘lost year’ for Goldcorp, but fortunately the capex will start to decrease from next year on.
Update: Goldcorp Drops 10% On Weak Q3 Earnings, But Shares Are Way Oversold
- Goldcorp has reported poor Q3 earnings with higher than expected cash costs.
- The company lost $.05 per share or $44 million, with all-in costs coming in at $1,066 an ounce.
- Still, the company reported adjusted net earnings of $70 million and operating cash flows of $192 million.
- With a 10% drop in share price, I think the market has overreacted as results weren't nearly that bad.
- Goldcorp (GG) just reported its third quarter results which missed estimates on earnings but saw revenues climb year-over-year.
- I discuss the production results and costs.
- What is going on with cash?
- Is the dividend secure?
- Goldcorp is a universally loved gold miner - there are simply no bears to be found.
- The stock is actually quite richly valued, and this is a reason for concern.
- While bulls point to growth, there is none after next year for a few years, and the company's depleting assets act as a headwind.
- While the company is positioned to use its overvalued stock as currency with which to make acquisitions, it has not done so, and until it does I'm on the sidelines.
Update: Chilean Court Halts Development At Goldcorp's El Morro Project
- Chile's Supreme Court has halted development at Goldcorp's $3.9 billion El Morro gold and copper mine.
- An environmental permit awarded last year will be put on hold until a new consultation has taken place with local indigenous groups who oppose the project.
- This news is negative for Goldcorp, but does not alter my bullish stance on the company for a few reasons.
- I think Goldcorp's Eleonore and Cerro Negro projects are world-class mines; in addition, the company has a 10+ million ounce gold project in Mexico which it can focus on.
- I'm looking to buy shares of Goldcorp on any future weakness.
Update: Goldcorp's El Morro Gold And Copper Mine Progress Halted - Bull Thesis Hampered
- Goldcorp has just been dealt a blow, learning that Chile's Supreme Court has halted the development of the El Morro gold and copper mine.
- When I suggested accumulating Goldcorp while waiting for a turnaround in gold prices, I was clear regarding geopolitical risks but did not see this bad news coming.
- For now, my original thesis stands, but this news has impacted the positive outlook.
- Goldcorp started production at Eleonore.
- The current low price of gold calls into question this mine's profitability.
- The uncertainty around the production also poses a question about this project's profitability.
Update: Goldcorp Announces Dividend - Why It Is Significant To My Thesis
- Goldcorp has just announced its tenth monthly dividend payment for 2014. Once again, the dividend is being maintained at $0.05 per share.
- Last week I had opined that now is the time to start accumulating Goldcorp shares, specifically highlighting the yield as a key reason to buy for the long term.
- The present news is bullish because after my article was published there was debate and some strong opinions that the dividend could be cut this month.
Update: Goldcorp Announces First Production At Eleonore
- Following four years of development, Goldcorp has announced the achievement of initial production at its Eleonore project in Canada.
- The project is expected to ramp-up production to 7,000 tonnes per day by the year 2018.
- 2014 production will be just 40,000 to 60,000 ounces, but will peak at 600,000 ounces of gold. The deposit remains open at depth with expansion potential.
- Goldcorp is my favorite major mining company, and I continue to purchase shares at depressed levels.
Update: Goldcorp Commences Production At Eleonore, Virginia Mines Sees Cash-Flow
- Goldcorp announced that it has begun producing at Eleonore.
- This benefits Virginia Mines as well, which owns a royalty on Eleonore.
- I have anticipated this in articles focused on both companies.
- Unfortunately both companies are overvalued, and Goldcorp needs to demonstrate that it can expand Eleonore to 600,000+ ounces of production before Virginia Mines becomes attractive.
- In addition Goldcorp needs to find a new growth source.
Tue, Nov. 18, 3:59 PM
- Gold prices jumped 1.2% to settle just shy of $1,200/oz. as the dollar eased against major currencies amid tensions in eastern Europe and the Middle East, and some observers are starting to ask if gold mining and production stocks (GDX +4.8%) have finally found a bottom.
- 24/7's Chris Lange thinks gold giants may have hit their lows on Nov. 5, followed by an impressive recovery since that date with gold fundamentals apparently not changing drastically.
- Major precious metals miners are strong across the board: ABX +6.5%, AEM +4.4%, AU +6.2%, GG +3.7%, GFI +7.6%, SLW +3.6%, NEM +3.4%, AGI +4.9%, IAG +6.6%, AUY +6.8%, KGC +9.2%, NGD +2.8%, GOLD +1.9%, RGLD +3.7%.
- Other ETFs: GDXJ, NUGT, DUST, SIL, JNUG, GLDX, JDST, SLVP, SILJ, RING, SGDM, PSAU
Fri, Nov. 14, 10:58 AM
- The gold market will enter deficit by 2016 as producers cut capex, resulting in reduced supply in the medium- to long-term, Credit Suisse analyst Anita Soni writes, seeing 2014 as a likely plateau for supply (Briefing.com).
- Agnico Eagle Mines (AEM +2.6%) and Eldorado Gold (EGO +4.5%) are the firm's top picks among gold miners under coverage.
- Other Outperform rated gold companies are GG, KGC, AUY, AUQ, FNV, GSS and IAG; rated Neutral are ABX, NEM, NGD and AGI.
Mon, Nov. 10, 6:46 PM
- With gold trading down as low as $1,131/oz., precious metals miners were hit hard again today, with the Market Vectors Gold Miners ETF (NYSEARCA:GDX) tumbling 6.3% and now 17% lower YTD.
- Barrick Gold (NYSE:ABX), which fell 6.7% today, was the subject of negative comments from Deutsche Bank, which said, “Management’s target net debt of $7B, conveyed on its 3Q14 earnings conference call, is a tall order without a combination of a higher gold price and asset sales.”
- Mining companies at least can look forward to the modest consolation prize of weaker local currencies and falling oil prices that will help trim their costs; for example, Agnico Eagle Mines (NYSE:AEM) estimates local currency declines could reduce its U.S. dollar-denominated cash production costs by 5%-6%.
- Also today: AU -9.8%, GG -4.8%, GFI -4.6%, SLW -4.7%, NEM -5.9%, AGI -6.8%, IAG -6.1%, AUY -6.6%, KGC -6.4%, NGD -7.2%, GOLD -5.1%, RGLD -5.3%.
- Other ETFs: GDXJ, NUGT, DUST, SIL, JNUG, GLDX, JDST, SLVP, SILJ, RING, SGDM, PSAU
Mon, Nov. 10, 11:49 AM
Fri, Nov. 7, 2:49 PM
- Goldcorp (GG +5.5%) says it has withdrawn the environmental impact study for its El Morro gold and copper mine in Chile after the country's Supreme Court halted development last month.
- GG says a project team has begun new studies to determine an optimal development plan for the $3.9B project that meets the company's investment return criteria.
- As of Dec. 31, El Morro on a 70% basis contains proven and probable gold reserves of 6.73M oz. and proven and probable copper reserves of 4.89B lbs.
Fri, Oct. 31, 11:35 AM
- Precious metals miners are slammed for a third straight session as gold prices plunged to multiyear lows.
- Japan’s surprise stimulus move is supporting the U.S. dollar and driving the ICE U.S. Dollar index to a four-year high, making gold more expensive to overseas buyers; while the prospect for more monetary stimulus usually increases the lure of gold, the threat of global deflation has withered gold’s appeal as a hedge against rising prices, Barron's Chris Dieterich explains.
- Nearly everyone in the sector is hitting 52-week lows (again): ABX -4.5%, NEM -7.7%, GG -0.5%, SLW -3.6%, AGI -5.8%, AEM -4.1%, AUY -10.6%, IAG -4.6%, KGC -16.2%, NGD -6.1%, AU -2%, GOLD -1.6%.
- Also: GFI -7.4%, RGLD -3.8%.
- ETFs: GDX, GDXJ, NUGT, DUST, SIL, JNUG, GLDX, JDST, SLVP, RING, SGDM, PSAU
Thu, Oct. 30, 9:17 AM
- Goldcorp (NYSE:GG) -1.7% premarket after reporting Q3 earnings and revenues that fell well short of analyst estimates as costs rose.
- Q3 gold production rose 2% Y/Y to 651.7K oz., but average all-in sustaining cost was $1,066/oz., compared with $995/oz. a year ago and much higher than analysts expected.
- GG says it reduced the carrying value of a low-grade ore stockpile at its Penasquito mine in Mexico, which raised average costs by $64/oz. and negatively affected adjusted earnings by $0.04/share.
- Expects FY 2014 gold output will be at the low end of its forecast range of 2.95M-3.1M oz., citing pit wall instability at El Sauzal and the suspension of activities at Los Filos in Q2; expects all-in sustaining costs at the low end of its guidance range of $950-$1,000/oz.
- Full-year capital spending guidance remains unchanged at $2.3B-$2.4B.
Thu, Oct. 30, 8:03 AM
Wed, Oct. 29, 7:40 PM
- Precious metals miners and the ETFs that track them were slammed today as the Fed moved to end its bond purchase program.
- Today’s 4.3% swoon in the Market Vectors Gold Miners ETF (NYSEARCA:GDX) drives the price below $20 for the first time since Oct. 2008, and the Global X Silver Miners ETF (NYSEARCA:SIL) tumbled 3.5% to its lowest finish since its launch in April 2010.
- The Fed action was expected, but paired with a more upbeat assessment of the U.S. labor market, gold’s appeal is further dampened vs. income generating assets, Barron's Chris Dieterich writes.
- Among individual names today: ABX -5.1%, NEM -4.7%, GG -4.1%, GFI -3.2%, SLW -3.3%, AGI -3.4%, AEM -4.7%, AUY -4.1%, IAG -4.6%, KGC -2.9%, NGD -4.3%, AU -3.3%, RGLD -4.8%, GOLD -2.5%.
- Other ETFs: GLD, SLV, GDXJ, NUGT, AGQ, IAU, DUST, USLV, SIVR, JNUG, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, JDST, DSLV, SLVP, OUNZ, DGL, DBS, SILJ, DGZ, RING, DGLD, AGOL, SGDM, PSAU, USV, UBG, BAR, BARS
Wed, Oct. 29, 5:30 PM
- ABC, ABMD, ACIW, ACOR, ALLE, ALU, AMAG, AMT, ANR, APD, APO, ATK, AUDC, AVP, BCO, BG, BGCP, BLL, BWA, CAH, CARB, CBM, CEVA, CI, CME, CNSL, COP, COR, CRCM, CRNT, CRR, CVI, CVRR, DBD, DFT, DHX, DST, EPD, EXLS, FCH, FCN, FIG, FIS, GBX, GEL, GG, GLOP, GNC, GOV, GTI, GTLS, HAR, HEES, HGG, HST, I, IDA, IDCC, INCY, INGR, IQNT, IRDM, IRM, ITC, IVZ, JCI, K, KCG, KEM, KMT, LAD, LECO, LKQ, LLL, LPLA, LRN, MA, MD, MDC, MDXG, MGM, MMYT, MO, MOD, MOS, MPC, MPLX, MPW, MSCI, MZOR, NEO, NGD, NI, NILE, NOV, NVO, NYT, O, OAK, OCN, ODFL, OXF, PBI, PCRX, PEG, Q, RDEN, RDN, RDS.A, RFP, RGLD, RTIX, SCG, SHOO, SMP, SNAK, SPAR, SSE, STRA, STRZA, SUI, TASR, TEVA, THRM, TRI, TWC, UAN, UPL, USAC, VICL, VNTV, WLT, WST, WWE, XEL
Thu, Oct. 9, 3:58 PM
- The price of gold may be rising, but gold mining stocks are getting hammered today; after all, "they are still stocks," Barron's Johanna Bennett writes.
- Gold prices rallied today to $1,234/oz., their highest level since Sept. 23, a day after the dovish minutes from the Fed’s September policy meeting excited gold bugs, but shares of the mining companies are falling along with the broader market selloff.
- Among the top mining names: IAG -6.9%, KGC -6.2%, SLW -5.9%, NGD -5.5%, AU -4.9%, GG -4.7%, ABX -3.9%, AUY -3.9%, GFI -2.8%, BTG -2.7%, RGLD -2.6%, AGI -2.1%, GOLD -1.8%.
- ETFs: GLD, SLV, GDX, GDXJ, NUGT, AGQ, IAU, DUST, SIL, USLV, SIVR, JNUG, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, JDST, SLVO, GLDI, DSLV, SLVP, DGL, DBS, SILJ, DGZ, RING, OUNZ, GGGG, DGLD, AGOL, SGDM, PSAU
Thu, Oct. 9, 10:35 AM
- Goldcorp (GG -2.4%) is looking to cut costs on its planned and already-delayed $3.9B El Morro copper and gold project in Chile, and that may mean new permits are needed and further hold-ups, CEO Chuck Jeannes says.
- The project has been caught up in a legal fight, and this week Chile's Supreme Court ruled El Morro's environmental permit should be suspended until the company holds new talks with local indigenous groups.
- While progress on the project has been bogged down, the CEO says GG has been reviewing engineering plans to find a better way to build the mine and is continuing those studies.
Wed, Oct. 8, 6:20 PM
- No investment sector benefited more today from the dovish take on the FOMC meeting minutes than precious metals miners, as the Fed's worries over weakening world economies and a strong U.S. dollar offer hope for gold bulls that the Fed will not rush to raise interest rates.
- Gold mining ETFs surged past those linked to the commodity price, with GDX +7.4% and GDXJ +9.6% while GLD +1%; among leveraged ETFs, NUGT +21.5%.
- Among major miners: BTG +14.4%, AGI +13.6%, GG +8.6%, RGLD +8.6%, SLW +8%, NGD +7.6%, IAG +7.5%, GFI +7%, AUY +6.9%, ABX +5.2%, AU +4.8%, KGC +3.5%.
- Other ETFs: SLV, AGQ, IAU, DUST, SIL, USLV, SIVR, JNUG, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, JDST, SLVO, GLDI, DSLV, SLVP, DGL, DBS, GLTR, SILJ, DGZ, RING, OUNZ, GGGG, DGLD, AGOL, DBP, SGDM, WITE, PSAU
Tue, Oct. 7, 2:33 PM
- Chile's Supreme Court has halted development of Goldcorp's (GG -1.2%) El Morro gold and copper mine, saying an environmental permit awarded last year should be stopped until a fresh consultation takes place with local indigenous groups who oppose the $3.9B project.
- The decision overturns a local appeals court finding from last April, which dismissed an appeal lodged by the local Diaguita community, who say the mine is planned on what they deem as sacred ancestral land, and that it could pollute a local river.
- El Morro is 70% owned by GG and 30% by New Gold (NGD -2.6%).
Mon, Oct. 6, 2:45 PM
- Gold prices bounce off 15-month lows to reclaim $1,200/oz. as the dollar rally pauses, helping strengthen shares of precious metals miners: AU +4.4%, GFI +3%, IAG +1.9%, BTG +3%, GG +2.2%, NGD +1.5%, KGC +1.6%, AGI +1.6%, RGLD +1%, SLW +2.1%.
- Sterne Agee analysts Michael Dudas and Satyadeep Jain foresee gold and silver prices trending higher, with gold averaging $1,400/oz. in 2015 and $1,450 in 2016 and silver averaging $19 next year and $21 in 2016, as “global demand remains firm, liquidity remains ample and the dollar appears overbought.”
- With investor sentiment still skeptical, Sterne thinks any supportive macro news flow could provide fuel for a rally; the firm rate Newmont Mining (NEM +1.5%), Agnico-Eagle Mines (AEM +2.4%), Coeur Mining (CDE +1.3%) and Gold Resource (GORO +0.2%) as Buys, with Barrick Gold (ABX +0.5%), Hecla Mining (HL +4.3%) and Pan American Silver (PAAS +1.5%) rated Neutral.
- ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, DGL, DBS, DGZ, OUNZ, DGLD, AGOL, DBP, TBAR, USV, UBG, JJP, GLDE, BAR, GYEN, GEUR, RGRP, BARS, GGBP, BLNG
Mon, Oct. 6, 11:59 AM
GG vs. ETF Alternatives
Other News & PR