Randgold Resources LimitedNASDAQ
The Odds For Our Golden Pair Trade Just Got Better
Itinerant • 16 Comments
Itinerant • 16 Comments
A Golden Pair Trade: Long Endeavour Mining, Short Randgold
Itinerant • 15 Comments
Itinerant • 15 Comments
Mon, Nov. 28, 9:57 AM
- South Africa's mining industry is at risk of collapse due to political unrest and labor instability which have negatively impacted investment into the country, Sibanye Gold (SBGL +1.2%) CEO Neal Froneman tells Reuters.
- "We sit on a knife edge as an industry. It could well collapse, and that means it's unlikely that Africa's potential will be realized because resources will be sterilized," the CEO says at the Investing in African Mining seminar in London.
- South Africa's mining sector, which accounts for ~7% of GDP, opposes the introduction of regulations and laws that could see the powers of the mining minister increase and black ownership commitments of companies rise.
- Ratings agencies Fitch and Moody's on Friday kept their ratings on South Africa unchanged but Fitch cut its outlook for the economy to negative, citing concerns over political risk and low growth.
- Other relevant tickers include GFI, GOLD, AU, HMY, OTCPK:AAUKF, OTCPK:AAUKY.
Thu, Nov. 17, 6:47 PM
- Higher gold prices this year has prompted some of the world's largest bullion producers to increase dividends, but Randgold Resources (NASDAQ:GOLD) CEO Mark Bristow warns higher payouts may be too hasty in light of past mistakes.
- "The industry hasn't learned" from squandering the spoils from gold prices above $1,900/oz. in 2011 on dividends and acquisitions, rather than cutting costs and investing in existing mines, Bristow tells Reuters.
- Newmont Mining (NYSE:NEM) doubled its quarterly dividend last month and introduced a new payout policy with the potential to more than double dividends from Q1 2017, Newcrest Mining (OTCPK:NCMGF) reinstated its dividend this year for the first time since 2013, Agnico Eagle (NYSE:AEM) raised its quarterly dividend by 25% in July to the highest in three years, and Harmony Gold (NYSE:HMY) paid its first dividend in four years in August.
- Randgold, which prides itself on being a low-cost producer that is careful with its cash, itself is planning to raise its dividend at year-end.
Wed, Nov. 16, 7:15 PM
- Gold mines are on the verge of peak production as the pipeline of new withers, supporting prices and delivering a new impetus for dealmaking and industry consolidation, Goldcorp (NYSE:GG) Chairman Ian Telfer tells Bloomberg.
- The number of deals in the gold sector this year is the highest since 2011, as gold’s price surge has prompted producers to trade assets to add production or to improve the mine portfolio quality, and Telfer says GG is reviewing opportunities for acquisitions or partnerships including in new discoveries and existing assets.
- Randgold (NASDAQ:GOLD) CEO Mark Bristow said recently that gold production may peak in the next three years as miners fail to replace their reserves, and Telfer concurs, saying producers have limited scope to raise output in response to higher prices, and that “we are having a heck of a time finding gold."
- “Once supply from mines starts to decline and people start to realize the impact that’s going to have... it’s going to be incredibly bullish for gold,” Telfer says.
- ETFs: GLD, IAU, PHYS, SGOL, UGL, DGP, GTU, UGLD, GLL, DZZ, OUNZ, DGL, DGZ, DGLD, UBG
Fri, Nov. 11, 5:35 PM
Wed, Nov. 9, 10:51 AM
- Gold has pared early gains approaching 5%, now just +1% at $1,287.70/oz., with silver +1.5% at $18.64/oz., but precious metals mining stocks continue to enjoy strong gains.
- “The market is telling you that the mining sector is the biggest beneficiary of a Trump election, particularly precious metals,” says Investec Securities analyst Jeremy Wrathall.
- Among precious metals miners today: ABX +3.5%, NEM +4.3%, GG +5.6%, AEM +4.2%, SLW +3.4%, KGC +4.2%, RGLD +5.1%, EGO +3.8%, NG +5.8%, GOLD +5%, GFI +5.5%, AU +4.5%, HMY +5.9%, SBGL +7.1%, FNV +3.8%, AUY +5.3%, IAG +4.6%, BTG +6.3%, NGD +7.6%.
- ETFs: GLD, SLV, GDX, NUGT, IAU, AGQ, GGN, DUST, PSLV, SIL, PHYS, USLV, SIVR, SGOL, ZSL, GLDX, UGL, DGP, GTU, UGLD, GLL, DZZ, SLVO, SGDM, GLDI, ASA, DSLV, OUNZ, SLVP, DGL, RING, DBS, DGZ, DGLD, PSAU, TGLDX, GYEN, USV, GEUR, UBG, GDXX, GDXS
Thu, Nov. 3, 7:45 AM
- Randgold (NASDAQ:GOLD) -6% in London trading as Q3 profit posted a 55% Y/Y increase but gold production fell short of analyst expectations, raising questions about whether the company will hit its full-year output target.
- GOLD says Q3 production of slightly more than 301K oz. was up 7% Q/Q and in-line with the previous year, reflecting a recovery from its Tongon and Kibali mines in the Ivory Coast and Congo, respectively, following technical issues in H1.
- Q3 total cash cost of $663/oz. of gold was 9% lower Q/Q and 5% lower than the prior-year quarter.
- Net cash generated by operations rose 18% Q/Q to $361M, and CEO Mark Bristow says that "if the gold price stays above $1,250/oz., and we deliver on our forecasts, we should get close to a $500M net cash position at year-end."
Thu, Nov. 3, 3:04 AM
Wed, Oct. 26, 2:36 PM
- Randgold Resources (GOLD -2.2%) agrees to pay Mali's government 15B CFA francs ($25M) to help to resolve a tax dispute that resulted in the company's Bamako offices and bank accounts being closed by authorities earlier this month.
- CEO Mark Bristow says GOLD agreed to the payment on the understanding that both parties will soon sit down to fully resolve the company's tax issues.
- The company's dispute with the government relates to tax assessments during 2011-13; Mali's finance minister said this week that GOLD owes 42B CFA, which the company disputes.
Fri, Oct. 21, 9:48 AM
- Mali's government has allowed the offices of companies controlled by Randgold Resources (GOLD -0.5%) in the capital Bamako to reopen, an economy ministry official says, after it shut them two weeks ago over a tax dispute.
- The government shut down the offices amid allegations that the companies owed 46.9B CFA francs ($80M) in unpaid taxes.
- The official says discussions to resolve the dispute will begin on Monday.
Wed, Oct. 12, 9:44 AM
- Mine workers in Mali will go on strike for five days beginning Oct. 24 at mines belonging to gold producers including Resolute Mining (OTCPK:RMGGF) and Robex Resources (OTCPK:RSRBF), the country's biggest union says.
- The union, which represents 80% of the mining industry's workforce in the country, says it is also in dispute with Randgold Resources (NASDAQ:GOLD) over unpaid productivity bonuses.
- Mali depends on gold and cotton for 80% of its exports, and vies with Tanzania as Africa’s third biggest gold producer after South Africa and Ghana.
Mon, Oct. 10, 1:45 PM
- Randgold Resources (GOLD -1.2%) is told by Mali's government to pay half the 46.9B CFA francs ($80M) it says the miner owes it before opening talks about the remaining sum, Reuters reports.
- The government also says the company must provide accounting information that it has so far refused to give to tax authorities.
- Mali's government recently closed the offices of companies controlled by GOLD but left three of its mines there operational.
Mon, Oct. 10, 9:15 AM
- Randgold Resources (NASDAQ:GOLD) says its tax dispute with Mali's government has not affected operations at its three mines in the country.
- GOLD says it is disappointed that the government escalated their long-running tax dispute to the extent of closing the company's offices in the capital city of Bamako, but its Morila, Loulo and Gounkoto mines remain in operation.
- GOLD disclosed in August that it had been professionally advised that most of the tax claims received from the Mali government in respect of its operations in that country are without merit or foundation.
Tue, Oct. 4, 5:37 PM
Tue, Oct. 4, 2:20 PM
- Precious metals miners are slammed as gold prices dip well below $1,300/oz. to settle at $1,269.70, its lowest since the U.K.'s Brexit vote in June, as upbeat U.S. manufacturing data yesterday has stoked expectations of higher interest rates.
- Gold is “falling off the cliff,” says Naeem Aslam, chief market analyst at ThinkMarkets. “Traders are buying the equity market with both hands, especially over in the U.K.” as the British pound declines.
- Among precious metals miners today: ABX -9.2%, KGC -10.4%, GG -7.8%, NEM -8.7%, EGO -7.4%, RGLD -7.8%, AEM -8.9%, NG -9.7%, SLW -9.1%, FNV -5.6%, IAG -11.2%, GOLD -8.1%, AU -9.3%, GFI -6.4%, SBGL -8.1%, HMY -9.9%, AUY -11.6%, BTG -9.3%, NGD -6.6%.
- ETFs: GDX, NUGT, GDXJ, GGN, DUST, SIL, JNUG, GLDX, JDST, SGDM, ASA, SLVP, SILJ, RING, PSAU, SGDJ, TGLDX, GDJJ, GDXX, GDXS
Wed, Sep. 21, 5:55 PM
- Newmont Mining (NYSE:NEM) was today's best-performing stock in the S&P 500 and precious metals miners gained across the board, enjoying a big boost from the Fed’s decision to keep interest rates unchanged.
- NEM even outperformed the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) - +7.5% vs. +7% - and Credit Suisse analysts say business in looking up for the miner, as NEM continues to meet or beat cost and production targets, as well as strengthen its portfolio.
- The firm adds that NEM believes shareholders appreciate its predictability, discipline and defining growth based on free cash flow rather than production.
- Also today: ABX +8.6%, GG +7%, AEM +7.1%, EGO +5.7%, KGC +7.6%, SLW +7.8%, FNV +4.8%, RGLD +9.6%, IAG +7.9%, GOLD +4.7%, AU +10.4%, GFI +9%, SBGL +9.5%, HMY +11.8%, AUY +7.6%, BTG +6.3%, NG +8.1%.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, SGDM, ASA, SLVP, RING, PSAU, TGLDX, GDXX, GDXS
Wed, Aug. 24, 2:30 PM
- Shares of gold miners are sharply lower as gold futures fall 1.2% to settle at a one-month low $1,329.70/oz., closing below its 50-day moving average for the first time since June 7.
- The top gold miners ETF (GDX -6.3%) trades well below its 50-day moving average of $29.09 and is on pace for its first four-day losing streak since early November.
- Investors are dialing down bullish bets on gold ahead of Friday's scheduled remarks from Janet Yellen, says Peter Hug, global trading director at Kitco Metals.
- Among top mining stocks: ABX -8.4%, NEM -6.7%, GG -8.7%, KGC -9%, AEM -6.3%, SLW -7.3%, RGLD -7.3%, EGO -7.2%, GFI -5.1%, AUY -8.8%, GOLD -5%, HMY -5.7%, SBGL -4.9%, IAG -8.7%, BTG -6.9%, NG -7.3%, FNV -6%.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, UGL, DGP, UGLD, GLL, DZZ, SGDM, ASA, SLVP, DGL, RING, DGZ, DGLD, PSAU, TGLDX, UBG, GDXX, GDXS