Iamgold Is Priced Like It Is Highly Leveraged But It Is Sitting On A Ton Of Cash
Equitable Research • 46 Comments
Equitable Research • 46 Comments
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
Tue, Nov. 8, 9:17 AM
Mon, Nov. 7, 5:09 PM
Sun, Nov. 6, 5:35 PM
- ACAD, ACXM, ADUS, AKAO, ALB, ALGN, AMC, ANDE, APEI, APLE, ARNA, BIOS, CHGG, CKEC, CRAY, CST, CTLT, CUTR, CZR, DEPO, DMD, DTLK, DTSI, EBS, EDIT, ENV, EPM, FANG, FARM, FICO, FN, FNV, FOGO, FRGI, FSM, FTD, HALO, HCKT, HTZ, IAG, IFF, JKHY, JPEP, KND, LSCC, LYV, MAR, MATX, MCHP, MODN, MXL, NCMI, NEWR, NH, NVGS, NVRO, NWSA, OAS, OMF, OPK, ORA, OUT, PACD, PCLN, PINC, PKI, PRAA, PTLA, RARE, REN, RMTI, RRR, RST, RTEC, RWT, SCSC, SGY, SITE, SNCR, SNHY, TCX, TDW, TREX, TSLX, ZGNX
Mon, Oct. 24, 2:24 PM
- Analysis from Canaccord Genuity suggests the gold price may have bottomed, thus the firm upgrades Goldcorp (GG -2%), Centerra Gold (OTCPK:CAGDF +0.8%), Detour Gold (OTCPK:DRGDF -1.5%) and Fortuna Silver Mines (FSM -0.4%) to Buy from Hold.
- With the recent pullback in commodity prices, "a window of opportunity appears to have presented itself, and we believe investors should consider increasing weights" in select precious metals stocks, the firm says.
- Canaccord cites rising market volatility related to the upcoming U.S. election, the recent pullback in extreme non-commercial long gold positions on the Comex, declining selling pressure among hedge funds, and real interest rates remaining near zero whether or not the Fed raises rates in December.
- The firm cites other names that could benefit, as underperforming portfolio managers look to increase their leverage to gold, including Kinross Gold (KGC -5.7%), Iamgold (IAG -2.2%) and B2Gold (BTG -3.9%) among senior producers, Endeavour Mining (OTCQX:EDVMF -1.6%) and Alamos Gold (AGI -3%) among mid- and small-cap producers, and Tahoe Resources (TAHO -1.1%) in the silver space.
Wed, Oct. 19, 10:58 AM
- Iamgold (IAG +4.6%) is upgraded to Buy from Hold with an $8 price target, raised from $7.50, at Canaccord Genuity, which says a recent tour of the company's operations showed productivity improvements and major cost savings in most areas.
- The firm says IAG is ahead of schedule in completing the secondary crusher at the Rosebel gold mine in Suriname, with additional crushing supply apparently ready to come online in November.
- Canaccord also notes that IAG shares have dropped ~35% since peaking in August and now trade at a 17% discount to peers on a price/NAV basis.
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
Fri, Sep. 23, 5:35 PM
Thu, Sep. 22, 5:36 PM
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
Mon, Sep. 12, 2:02 PM
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
Tue, Aug. 23, 2:01 PM
Tue, Aug. 9, 9:19 AM
Mon, Aug. 8, 7:42 PM
- IAMGOLD (NYSE:IAG) -6.7% AH after announcing a public offering of 38.85M common shares on a bought deal basis at US$5.15 each for ~$200M in total gross proceeds, plus an underwriters option to purchase up to an additional 5.827M shares.
- IAG says it plans to use to ~$150M of the proceeds to fund a tender offer for its outstanding 6.75% senior notes, with the remainder to fund internal growth projects, including the expansion of the Sadiola mine.
Mon, Aug. 8, 12:58 PM
- Agnico-Eagle Mines (AEM -0.3%) is downgraded to Sector Perform from Outperform with a $67 price target at RBC Capital, which says AEM has consistently met or exceeded production targets but the strong execution already is priced into the stock's premium valuation.
- The firm says AEM appears to be pricing in the miner's recent favorable guidance revision as well as expected Q4 and year-end resource and reserve additions.
- Despite AEM's premium valuation, RBC acknowledges several potential exploration catalysts ahead, including results from Amaruq, El Barqueno, Kittila, Canadian Malartic and Barsele.
- Meanwhile, RBC upgrades IAMGOLD (IAG +3%) to Sector Perform from Underperform with a $6.50 price target, raised from $5.50, citing improving operational performance and positive cost trends through Q2, which combined with a healthier gold price environment should see IAG deliver positive sustaining and operating free cash flow in H2.