Thu, Jul. 28, 12:59 PM
- Barrick Gold (ABX -1.5%) believes it could fetch as much as $1B for its 50% stake in the Kalgoorlie Super Pit mine in Australia, Bloomberg reports.
- ABX, which announced plans to sell its stake alongside its Q2 earnings, reportedly aims to sell in the next few months, and expects to attract interest from Australian, Chinese and other global miners in addition to Newmont Mining (NEM -0.3%), which has signaled it would be wiling to buy ABX's stake at the right price.
- However, Sibanye Gold (SBGL -2.2%) says it will not make an offer for the assets of ABX's Acacia Mining unit; Reuters reported earlier this week that ABX is weighing a sale of its majority stake in Acacia and has approached several South African miners.
Wed, Jul. 27, 6:38 PM
- Barrick Gold (NYSE:ABX) -0.7% AH after missing Q2 earnings expectations by a penny and saying it will explore selling its 50% stake in western Australia's Kalgoorlie mine to further trim its debt.
- Newmont Mining (NYSE:NEM), ABX's joint venture partner at Kalgoorlie, said last September that it was interested in buying out the rest of the mine.
- ABX says it has reduced its total debt by $968M YTD after cutting $3.1B in 2015, and remains on track to cut debt by at least $2B this year; over the medium term, it aims to reduce total debt to below $5B from $9B currently and lower all-in sustaining costs to below $700/oz. by 2019 after reporting AISC of $782/oz. for Q2, down nearly 13% Y/Y.
- ABX says Q2 gold production fell 7.5% to 1.34M oz. and its average realized gold price rose to $1,259/oz. from $1,190 a year earlier; ABX reaffirms its full-year gold production outlook of 5M-5.5M oz. and lowers its AISC guidance to $750-$790/oz. from $760-$810/oz.
- Q2 copper output rose to 380M-430M lbs. from 370M-410M lbs. with the start of commercial production at its 50%-owned Jabal Sayid mine in Saudi Arabia.
Thu, Jul. 21, 2:30 PM
- Newmont Mining (NEM +2.4%), which posted an impressive Q2 earnings beat yesterday, says it will review its dividend at an October board meeting, an indication that it may boost its payout later this year.
- "It's certainly worth noting that if today's gold price is maintained, our gold price-linked dividend would double in the third quarter," CFO Laurie Brlas said during today's earnings conference call.
- CEO Gary Goldberg said the board will weigh the use of cash for debt reduction, project investment and shareholder returns, but that raising the dividend is preferable to share buybacks.
- Slide show
Wed, Jul. 20, 6:22 PM
- Newmont Mining (NYSE:NEM) +2% AH after easily exceeding analyst expectations for Q2 earnings and revenues, benefiting from higher gold production and lower costs.
- NEM says it produced 1.3M oz. of attributable gold and 38K metric tons of copper during Q2, compared to 1.2M oz. of gold and 42K metric tons of copper in the prior-year quarter.
- All-in sustaining costs for gold improved to $876/oz. in Q2 from $909/oz. in the prior-year quarter, and copper AISC improved to $1.53/lb. vs. $1.61/lb. a year ago.
- NEM issues a new gold production forecast, excluding the Batu Hijau mine in Indonesia, which it is selling: the miner now expects output of 4.7M-5M oz. in 2016, rising to 4.9M-5.4M oz. in 2017 and remain stable at 4.5M-5M oz. through 2020.
- NEM also lowers its AISC guidance to $870-$930/oz. for 2016 from a previous outlook for $880-$940; 2017 guidance remains at $850-$950/oz.
Mon, Jun. 27, 8:59 AM
- Barrick Gold (NYSE:ABX) +2.9% premarket after Goldman Sachs adds the miner to its Conviction Buy List with a $27 price target, raised from $23, lifting its precious metals outlook to Attractive from Neutral and boosting its gold forecast by an average of 10% for 2017 and 2018.
- Citing Brexit uncertainty, Goldman raises its gold price deck for 2016/17/18 to $1,260/$1,261/ $1,250 from its prior estimate of $1,202/$1,150/$1,150.
- The firm says it now expects ABX to generate $1B-plus in free cash flow over the next 12 months, enabling it to further delever on net debt/EBITDA.
- Goldman also raises its price target for Newmont Mining (NYSE:NEM) to $47 from $36; NEM +2% premarket.
Fri, Jun. 24, 9:11 AM
- Gainers: AAU +20%. VGZ +18%. MUX +13%. AKG +12%. GPL +13%. GORO +12%. GFI +12%. EMES +12%. GOLD +12%. AU +12%. SBGL +11%. EXK +11%. KGC +10%. HMY +11%. SAND +10%. ABX +10%. EGO +9%. SA +7%. IAG +9%. AUY +9%. CDE 9%. NGD 9%. AEM 8%. NEM 8%. GG 8%. NG 8%. FSM 7%.
- Losers: LYG -27%. BCS -26%. SAN -24%. RBS -23%. AV -23%. BBVA -22%. DB -18%. ING -18%. BT -18%. VNR -11%. TEF -17%. CS -16%. PUK -15%. MT -15%. AEG -14%. RYAAY -13%. UBS -12%. FCAU -12%. GNCA -12%. NOK -12%. BBL -11%. IPI -11%. TOT -11%. ANFI -11%. MNKD -10%. BCEI -8%. VMEM -10%.
Mon, Jun. 20, 10:22 AM
- Gold futures -0.8% at ~$1,284/oz. after weekend polls showed a higher likelihood that the U.K. would vote to stay in the European Union.
- “This is a market that’s going to be very emotional this week” ahead of the June 23 referendum, says Peter Hug, global trading director at Kitco Metals, who believes that broader economic concerns and low interest rates will continue to support gold prices regardless of the Brexit outcome.
- Gold has risen 21% YTD amid worries over global growth and as the Fed has pushed back plans to raise short-term interest rates.
- Precious metals miners are among the biggest losers in early trading: ABX -3.8%, GG -2.4%, NEM -2.5%, AEM -1.6%, KGC -4.4%, SLW -1.7%, PAAS -2.7%, RGLD -0.8%, EGO -1.4%, NG -1.6%, GFI -4.8%, AUY -1.4%, IAG -1.8%, FNV -1%, HMY -2.3%, SBGL -2.6%, OTCPK:NCMGY -5%.
- 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
Fri, Jun. 3, 3:58 PM
- Gold miner stocks are skyrocketing, with the sector enjoying its best day in nearly seven years, as the disappointing May jobs report helped spark a strong rally in the yellow metal.
- The VanEck Vectors Gold Miners ETF (GDX +11.1%) surged more than 10% on heavy volume, and all 24 of the ETF’s U.S. equity components traded higher, with 10 of them enjoying double-digit percentage gains.
- In today's trade: ABX +12.9%, NEM +9.5%, GG +7.7%, AEM +11.1%, OTCPK:NCMGY +10.7%, KGC +15.4%, SLW +9%, FNV +9.1%, RGLD +9.4%, EGO +9.8%, GFI +13.7%, SBGL +8.2%, HMY +13%, IAG +16.4%, AU +14.4%, GOLD +8.6%, AUY +13.9%, NGD +9.6%, HL +12.1%, CDE +11.6%, TAHO +10.8%, NG +12.2%, AG +12.3%, PAAS +8.9%.
- ETFs: GDX, NUGT, GDXJ, GGN, DUST, SIL, JNUG, GLDX, JDST, SGDM, ASA, SLVP, RING, PSAU, SGDJ, TGLDX, GDXX, GDJJ, GDXS, GDJS
Wed, May 11, 11:37 AM
- Goldman Sachs raises its 2017 gold price forecast to $1,150/oz. from $1,000 but says equity investors must remain selective, as the firm issues two stock upgrades and two downgrades among gold miners.
- Newmont Mining (NEM +0.1%) is upgraded to Buy from Neutral with a $36 price target, hiked from $23.50, as Goldman says NEM as the gem of the group and believes organic growth from Merian is less than six months away.
- The firm also upgrades Kinross Gold (KGC -9%) to Neutral from Sell with a $5.30 price target, but downgrades Franco-Nevada (FNV -2.7%) to Sell from Neutral with a $51 price target and Goldcorp (GG -1.8%) to Neutral from Buy with a $16 target.
- Now read Paul Singer: Gold just getting started
Tue, Apr. 26, 12:26 PM
- Newmont Mining (NEM +2.7%) is upgraded to Outperform from Sector Perform with a $40 price target, raised from $34, at RBC Capital, which cites NEM's strong free cash flow outlook and the potential sale of its Batu Hijau project in Indonesia.
- At a forecast gold price of $1,250/oz. in 2017, the firm forecasts NEM will generate free cash flow of $1.4B, enough to pay back a sizeable chunk of debt and fund new development projects.
- NEM has said it is in discussions with parties interested in buying its stake in the Batu Hijau open pit copper and gold mine, and the firm thinks proceeds could be as much as $900M and that a sale would be a positive outcome given the ongoing geopolitical risk and future capital commitments; with proceeds from a Batu sale, RBC suggests NEM could buying the 50% stake in the Kalgoorlie mine it does not already own from Barrick Gold for an estimated $634M.
- Now read Newmont Mining: Commentary on the Indonesian bid for Batu Hijau
Wed, Apr. 20, 5:25 PM
- Newmont Mining (NYSE:NEM) +1.8% AH after Q1 earnings beat analyst expectations with help from higher production and lower costs.
- NEM says Q1 attributable gold production rose 3.3% Y/Y to 1.23M oz. while copper output gained 2.7% to 38K metric tons, keyed by increased production at Batu Hijau in Indonesia; all-in sustaining costs improved to $828/oz. of gold from $849 in the same quarter a year ago.
- NEM says average realized gold and copper prices in the quarter fell to $1,194/oz. and $2.02/lb., respectively, vs. $1,203/oz. and $2.34/lb. in the year-ago period.
- The miner reaffirmed gold production guidance of 4.8M-5.3M oz. in 2016, rising to 5.2M-5.7M oz. in 2017 and remaining stable at 4.5M-5M oz. through 2020.
- NEM also says vice chair Noreen Doyle has been appointed to succeed Vincent Calarco as Chairman; Calarco will remain as a director.
Wed, Apr. 20, 4:18 PM
Mon, Apr. 11, 12:39 PM
- Gold miners are surging amid higher gold prices and a positive research note from RBC Capital, as the Market Vectors Gold Miners ETF (GDX +4.9%) powers higher with all 39 of its equity components rising.
- Kinross Gold (KGC +6.9%) and AngloGold Ashanti (AU +4.9%) are upgraded to Outperform at RBC, citing valuation amid an increase in the firm's 2016 gold price outlook to $1,250/oz. from $1,150; the firm says KGC's production profile has improved with the 2015 acquisition of mines from Barrick Gold (ABX +5.6%) and the planned Tasiast expansion, while AU represents the most robust opportunity in its South African coverage, supported by a diverse, low cost asset portfolio.
- Goldcorp (GG +3.8%) is sharply higher despite RBC's downgrade to Underperform, as the firm believes shares trade at a significant premium to Tier 1 peers and management needs to re-establish investor confidence in operations and strategy.
- Also: NEM +5.7%, AEM +4.9%, FNV +2.9%, HMY +3.8%, EGO +7.9%, NG +7.6%, HL +4.4%, GFI +3.1%, GOLD +1.7%, SBGL +6%, SLW +4.2%.
- Other ETFs: NUGT, GGN, DUST, SIL, GLDX, SGDM, ASA, SLVP, RING, PSAU, TGLDX, GDXX, GDXS
- Now read Kinross Gold: Analyst estimates following the news on Tasiast mine expansion
Fri, Apr. 8, 11:57 AM
- Barrick Gold (ABX +4.7%) is upgraded to Outperform from Neutral with a $17 price target, raised from $11, at Credit Suisse, which sees ABX as ideally positioned to capture gold leverage because of its capital allocation strategy.
- Credit Suisse says ABX’s commitment to a 15% return on invested capital is differentiated in the gold sector and positions the miner to effectively capture the leverage through prudent deployment of cash flow that would accrue during a period of higher gold prices.
- The firm also says ABX is on track to reduce its debt to a more manageable $8B target by year-end 2016 from $10B at year-end 2015 and $13B, and a higher gold price could accelerate the process.
- The firm sees ABX's net asset value multiple at 2x vs. Goldcorp (GG +2.5%) at 1.75x and Newmont Mining (NEM +4.1%) at 1.80x to "reflect the preference of newer investors in the gold space for a turnaround story with demonstrated leverage to gold price."
- Now read Barrick earnings: No surprises
Wed, Mar. 23, 3:49 PM
- The YTD commodity price rally has been driven by incrementally positive data from China but the trend is unlikely to continue, as supply cuts are needed across most commodities, Deutsche Bank analyst Jorge Beristain says.
- Following a strong Q1 in precious metals, Beristain downgrades Barrick Gold (ABX -8.3%), Hecla Mining (HL -7%) and Pan American Silver (PAAS -5.4%) to Hold from Buy and Coeur Mining (CDE -9.7%) to Sell from Hold.
- The firm says it "favors select companies with relatively strong balance sheets and businesses that can defend margins through low cost, contractual sales or patented technologies," and recommends some gold exposure through Newmont Mining (NEM -8.3%) but advises avoiding Sell-rated CDE, Franco-Nevada (FNV -4.6%), Goldcorp (GG -7.1%) and Teck Resources (TCK -14.5%).
Mon, Feb. 29, 3:49 PM
- Every $100/oz. gain in the price of gold bullion adds $350M to free cash flow at Newmont Mining (NEM +2.3%), after taxes, and will help improve the company's balance sheet, CEO Gary Goldberg tells Bloomberg.
- NEM’s net-debt is now ~1.4x EBITDA, and the company plans to lower that ratio to 1x over the next two to three years, the CEO says.
- "As long as real interest rates stay down below 3%, that’s generally good for gold," Goldberg says, adding that at $1,200-$1,300/oz., "we still see it as a good price where we can deliver good free cash flow and dividends back to shareholders."
Newmont Mining Corp. is a gold producer, which is engaged in the acquisition, exploration and production of gold and copper properties in U.S., Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. The company's operating segments include North America, South America, Asia Pacific... More
Sector: Basic Materials
Country: United States
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