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, Mar. 7, 3:57 PM
- Randgold Resources (GOLD -0.2%) is downgraded to Equal Weight from Overweight at Morgan Stanley, which says the stock appears fully valued with metal prices “far above spot leaving their risk-rewards skewed to the downside."
- Stanley says the stock is pricing in a gold price at $1,890/oz., or using spot prices and “working back” to the share price suggests the market is accounting for a discount rate of 1%.
- However, the firm believes GOLD is best-in-class in the sector, with the lowest cost assets, a robust balance sheet and an excellent track record of developing gold mines while maintaining a strict capital allocation discipline.
Tue, Feb. 16, 3:49 PM
- Gold prices tumbled to their sharpest single-session loss since March 2015, based on most-active contracts, as investors turned more optimistic on the global economy after stock markets rallied and the European Central Bank said it stood ready to boost stimulus measures if needed.
- Adding to gold's decline was a report from Goldman Sachs commodities chief Jeffrey Currie, who said it is time to bet against the traditional safe haven as investor fears are overdone and do not justify the recent rally.
- "On net, fears around China, oil and negative interest rates have likely been overstated in the gold price and other financial markets," Currie says, doubling down on an earlier prediction that gold will slump to $1,100/oz. in three months and $1,000/oz. in 12 months.
- ABX -5.2%, NEM -5.1%, GG -5.5%, AEM -4.1%, SLW -2.9%, KGC -9.5%, NG -5.8%, AU -10.1%, FNV -3.8%, GFI -10.7%, HMY -5.3%, SBGL -11.6%, IAG -10.7%, GOLD -6.5%, EGO -10.5%, AUY -7.1%, HL -7.7%.
- ETFs: GLD, SLV, GDX, NUGT, IAU, AGQ, GGN, CEF, PSLV, DUST, SIL, PHYS, USLV, SIVR, SGOL, ZSL, UGL, GLDX, DGP, GTU, SPPP, GLL, UGLD, DZZ, SLVO, GLDI, SGDM, DSLV, ASA, OUNZ, SLVP, DGL, DBS, GLTR, RING, DGZ, DGLD, DBP, WITE, PSAU, TGLDX, USV, GEUR, GYEN, JJP, UBG, GDXS, GDXX
Thu, Feb. 11, 3:27 PM
- Gold stocks (GDX +7.8%) power higher as April gold futures jumped by $53.20/oz., or +4.5%, to settle at $1,247.80, the highest level since February 2015 and the biggest one-day dollar and percentage gain since September 2013, as investors sought safe-haven assets amid the global equity market rout.
- A growing universe of government bonds with negative yields has helped gold, while a lower U.S. dollar has made it cheaper for buyers in other currencies to purchase gold.
- Investor sentiment “seems to be thawing at the start of 2016, with a focus on gold’s wealth preservation and risk diversification properties,” the World Gold Council says.
- ABX +4.8%, GG +4.4%, AEM +8.7%, SLW +6.3%, KGC +14.2%, NG +6.2%, AU +7.4%, FNV +6.8%, GFI +10.8%, HMY +15.1%, SBGL +16%, IAG +12.3%, GOLD +4%, EGO +14%, AUY +9%, BTG +15.2%, HL +8.8%.
- ETFs: GLD, SLV, NUGT, IAU, AGQ, GGN, PSLV, DUST, SIL, PHYS, USLV, SIVR, SGOL, ZSL, UGL, GLDX, DGP, GTU, GLL, UGLD, DZZ, SLVO, GLDI, SGDM, DSLV, ASA, OUNZ, SLVP, DGL, DBS, RING, DGZ, DGLD, PSAU, TGLDX, USV, GEUR, GYEN, UBG, GDXS, GDXX, QGLDX
Mon, Feb. 8, 3:42 PM
- Randgold Resources (GOLD +9.1%) reaches a 52-week high after proposing to raise its annual dividend by 10% and as gold prices shoot higher today amid big losses in the broader equity markets.
- In an interview with Financial Times, CEO Mark Bristow cools expectations that the company is poised to make a big acquisition, with the brighter outlook for gold making it less likely that the company can snap up cheap assets.
- Deutsche Bank downgrades the stock to Hold from Buy, saying low cost production and an ungeared balance sheet should provide a relative premium but that shares have overshot the firm's fair value and do not offer enough growth or yield to maintain the rally, especially as gold's run-up is likely to "peter out."
Mon, Feb. 8, 9:49 AM
- AngloGold Ashanti (AU -0.9%) wants to find a solution for its aging Obuasi mine in Ghana by H2 of this year, CEO Srinivasan Venkatakrishnan tells Bloomberg.
- AU cut workers and placed Obuasi on limited operations last year as costs spiraled to more than $1,500/oz., but the CEO says returns can be improved once the government agrees to a tax regime and mining laws.
- AU needs a partner to help access the mine's 5.29M oz. of gold situated in high-grade ore yielding 6.7 grams/ton; Randgold Resources (GOLD +6.8%) in December rejected a proposal to redevelop the mine with AU, saying the project does not meet its investment criteria.
Mon, Feb. 8, 9:19 AM
- Randgold Resources (NASDAQ:GOLD) +2.3% premarket after proposing to increase its annual dividend by 10% on the back of strong cash flow, as Q4 earnings came in roughly as expected.
- GOLD says its cash on hand more than doubled to $213.4M last year, while production and costs were in line with its forecast; CEO Mark Bristow says the company is able to break even with a gold price that is less than $800/oz.
- “We will continue to increase our dividend and continue to grow our cash until we get to $500 million cash on the balance sheet,” the CEO says.
- The miner says it produced a record 1.21M oz. in 2015 at an average cost of $679/oz., and plans to produce 1.25M-1.3M oz. of gold at a cash cost of $590-$630/oz. this year.
- GOLD plans to spend $240M on capital spending in 2016 and $115M in 2017, compared with $182M spent in 2015.
- “Randgold is one of the few companies to still generate earnings growth, while its investment discipline has left it well placed to withstand the current environment,” Investec says.
Mon, Feb. 8, 6:29 AM
Mon, Feb. 8, 4:59 AM
Fri, Feb. 5, 5:38 PM
Wed, Feb. 3, 5:33 PM
- Mining companies that have been hit hard by weakening Chinese demand surged the most in five months today, as a rally in metal prices signaled production cuts are starting to pay off, Bloomberg reports.
- Newmont Mining (NEM +11.3%), Freeport McMoRan (FCX +11.2%) and First Quantum Minerals (OTCPK:FQVLF +16.6%) all gained at least 11% today in leading the Bloomberg Americas Mining Index to a 7% surge and its biggest increase since August.
- Gold futures broke above their 200-day MA for the first time since October, and zinc, copper, aluminum, nickel, lead and tin all gained, helped by the outlook for tighter supplies and a plunge in the dollar.
- In today's trade: ABX +8.8%, GG +10.2%, AEM +5.5%, SLW +8.7%, KGC +10.3%, NG +6.6%, AU +9.6%, FNV +7%, GFI +8.5%, HMY +5.1%, SBGL +6.1%, IAG +9.6%, GOLD +3.6%, EGO +8.3%.
- ETFs: GLD, GDX, NUGT, IAU, GGN, DUST, PHYS, SGOL, UGL, GLDX, DGP, GTU, GLL, JJC, UGLD, DZZ, DBB, SGDM, ASA, OUNZ, DGL, DGZ, RING, DGLD, JJN, PSAU, JJU, TGLDX, CPER, UBG, JJT, BOM, RJZ, BOS, FOIL
Tue, Jan. 19, 3:58 PM
- Randgold Resources (GOLD -2.1%) signs three joint venture agreements with junior miners to explore potential gold deposits in Democratic Republic of Congo.
- The new JVs with Kilo Goldmines, Deveron Resources and Loncor Resources more than double the size of GOLD's landholdings in Congo; GOLD already operates the Kibali mine in Congo, a joint venture with AngloGold Ashanti and state miner Sokimo, and has a joint venture with Kilo to explore for gold in the area.
- GOLD also announces that Kibali, which poured its first gold in 2013, likely will exceed its 2015 production target of 600K oz.
Thu, Jan. 7, 6:38 PM
- Gold and silver miners are the lone rose growing in this week's stock market garbage heap, as the out-of-favor group responds to the highest gold prices in two months amid the flight to perceived safe havens.
- China’s move to devalue its currency at once stokes worries that growth in the world’s no. 2 economy is more sluggish than feared and that other Asian countries will retaliate with devaluations of their own to keep exports competitive, which could bode well for further gold price upside.
- This week's results so far for top precious metals miners: HMY +53.7%, ABX +18.4%, IAG +14.3%, AEM +14.1%, GFI +13.2%, AUY +12.9%, SBGL +12.8%, AU +11.2%, EGO +10.8%, GG +10.1%, KGC +9.9%, FNV +7.9%, GOLD +6.1%, NEM +4.9%, SLW +4.6%.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, SGDM, ASA, SLVP, RING, PSAU, TGLDX, PICK, GDXS, GDXX
Dec. 21, 2015, 8:35 AM
- Randgold Resources (NASDAQ:GOLD) says it is walking away from a proposed joint venture with AngloGold Ashanti (NYSE:AU) to redevelop the aging Obuasi gold mine, one of the largest in Africa.
- GOLD says it believes the mine in Ghana no longer satisfies its investment requirements; the redevelopment could have cost up to $1B, according to an estimate when the proposed partnership was announced in September.
- The decision “shows that Randgold remains financially disciplined, but a negative is that medium-term growth options remain lacking," says analysts at Investec.
- Meanwhile, AU must look for another partner to redevelop Obuasi, which the miner says is too large and expensive for it to put back into production by itself.
Nov. 18, 2015, 5:44 PM
Nov. 6, 2015, 9:29 AM
Oct. 16, 2015, 8:42 AM
- Randgold Resources (NASDAQ:GOLD) is aggressively seeking new mining rights in Democratic Republic of Congo and expects to close a deal before year-end, CEO Mark Bristow says.
- Gold production in the country has surged over the past two years as mines including Kibali - a joint venture between GOLD, AngloGold Ashanti and Congo’s state-owned mining company - have started output; Kibali produced ~526K oz. in its first full year of operation in 2014, and GOLD says the mine is on course to produce 600K oz. this year.
Randgold Resources Ltd. Is a gold mining and exploration company, which engages in the mining, exploration and development of gold deposits and related activities. It develops and operates profitable gold mines in Central and West Africa. The company's projects include Kibali and Massawa and... More
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