Fri, Mar. 6, 2:42 PM
- Precious metals miners are bludgeoned as April Comex gold tumbles 2.7% to $1,164.30/oz. for its lowest settlement of the year so far.
- The culprit was the upbeat February jobs report, which sparked fears that the improving economy will prompt the Fed to hike interest rates sooner rather than later.
- ABX -6%, GG -6.6%, NEM -7.9%, AU -6.1%, AUY -6.6%, KGC -7.8%, SLW -3.4%, GOLD -5.4%, EGO -5%, GFI -7.9%, HL -10.4%, RGLD -8.6%, FNV -3.2%, NG -4.3%, SBGL -6.4%, PAAS -4.3%,BTG -6.5%, IAG -6.2%, AUQ -5.6%, AGI -2.8%.
- Precious metals ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, OUNZ, DGL, DBS, GLTR, DGZ, DGLD, AGOL, DBP, WITE, TBAR, USV, UBG, JJP, BAR, GYEN, GEUR, BARS, RGRP, BLNG
- Precious metals mining ETFs: GDX, NUGT, DUST, SIL, GLDX, SLVP, RING, SGDM, PSAU, GDXX
Fri, Feb. 6, 11:54 AM
- Sibanye Gold (SBGL -3.1%) says it has suspended work at its Beatrix mine in South Africa after several workers were injured in fighting between members of two rival unions.
- Beatrix accounts for ~20% of SBGL's annual production of nearly 1.6M oz.
- The conflict between members of the AMCU and NUM unions has killed dozens of miners over the last three years and damaged investor confidence in South Africa's economy.
Tue, Jan. 27, 10:49 AM
- Top South African gold producer Sibanye Gold (SBGL +1.5%) says it achieved record output in Q4, producing 452.7K oz. of gold to bring full-year output to 1.59M oz., in line with company guidance.
- SBGL expects 2015 capex to climb 10% to 3.6B rand ($320M), largely due to an increase in spending on projects to extend the operating lives of mines and on growth projects such as Burnstone; forecasts 2015 gold production to rise to 1.61M-1.67M oz.
- The capex announcement is something of a surprise, coming at a time of general belt tightening in the global mining industry and capex cutbacks amid falling commodity prices.
Dec. 30, 2014, 4:18 PM
- With the dollar falling against the yen and pound and a minor flight to safety afoot - Treasurys are higher, stocks have closed moderately lower - COMEX gold is up 1.4% today to $1,197/oz., and COMEX silver is up 2.6% to $16.20/oz. The gains have provided a lift to the volatile/beaten-down shares of gold and silver miners.
- Notable gold gainers: IAG +11.7%. ABX +3.6%. AUY +5.2%. NEM +3.6%. GG +4.6%. AU +4.2%. SBGL +4.9%. KGC +4.1%. AGI +5%. AEM +5.1%.
- Notable silver gainers: AG +7.6%. SVM +7.1%. SSRI +6.2%. SVM +6.4%. PAAS +3.9%. SVLC +5.2%. EXK +6.9%.
- ETFs with 3%+ gains: NUGT +10.1%. GDXJ +5.1%. USLV +9.7%. UBG +5.4%. USV +3.8%. SIVR +3.4%. AGQ +6.3%. BAR +3.2%. DBS +3.2%.
- The group rallied on Friday after the PBOC relaxed lending rules for banks, but sold off on Monday.
Dec. 17, 2014, 9:13 AM
Nov. 19, 2014, 5:38 PM
Oct. 17, 2014, 9:20 AM
Aug. 13, 2014, 12:28 PM
- Austerity moves clearly have helped gold miners navigate through the lower price environment, but Citigroup analysts warn that further belt-tightening will be difficult, and may even hurt long-term prospects.
- Citi cautions that the slowdown in capex invariably will result in a fall in production, which in turn will lead to a faster rise in unit costs; also, the recent increase in head grades across the global mining space is an unsustainable mining practice that can have further detrimental effects on future mine plans and ore bodies.
- Among miners Citi sees as most vulnerable to a low gold price environment are Sibanye Gold (NYSE:SBGL), Harmony Gold (NYSE:HMY) and DRDGOLD (NYSE:DRD), which the least vulnerable are Goldcorp (NYSE:GG), Barrick Gold (NYSE:ABX), Yamana (NYSE:AUY), Medusa Mining (OTC:MDSMF) and OceanaGold (OTCPK:OCANF).
- ETFs: GDX, NUGT, DUST, GLDX, RING, GGGG, PSAU
Jul. 25, 2014, 10:58 AM
- AngloGold Ashanti (AU +2.1%) says Q2 profit will be hurt by costs related to the closing of its Yatela mine in Mali and reorganizing operations in Ghana.
- AU also says it will provide for a $51M (537M rand) writedown on its 42.4% stake in Rand Refinery, which processes gold in South Africa.
- Harmony Gold (HMY +1.1%), a partner in Rand, says it will make a 125M rand provision, and Sibanye Gold (SBGL -8.2%), also with an ownership stake in the refinery, will write down 316M rand.
Jul. 21, 2014, 4:36 AM
- Anglo American's (OTCPK:AAUKY) subsidiary, Amplats, is planning to sell its Union mine, Rustenburg operations and a joint venture in South Africa.
- The move will reduce the miner's staff count by 20k, and follows a continuous five-month strike against the company by the AMCU union.
- The mine is expected to be sold to Sibanye Gold (NYSE:SBGL), whose CEO Neal Froneman announced a wish for a platinum deal before the end of the year.
- ETFs: PPLT, PTM, PLTM, PGM
Jul. 7, 2014, 9:14 AM
Jun. 19, 2014, 3:35 PM
- Beaten-up gold miner stocks are strong across the board as precious metal prices move sharply higher and take out key technical resistance levels; Comex gold jumped $41.40 (+3.3%) to settle at $1,314.10/oz., the highest level since April 14, and silver added $0.87 (+4.4%) to end at $20.65/oz..
- Among today's winners: EGO +8.5%, AGI +8.5%, BTG +8.1%, SBGL +8.1%, SLW +5.5%, AUY +5.3%, AUY +5.2%, KGC +5.2%, GG +4.8%, NG +4.4%, AU +4.1%, ANV +4%, GFI +3.8%, ABX +3.2%, NEM +2.8%, IAG +1.7%.
May. 29, 2014, 10:37 AM
- Citigroup is bearish on the gold mining sector but it does prefer some miners to others, namely Buy-rated Goldcorp (GG -0.7%) and Barrick Gold (ABX +0.4%) as well as Neutral-rated Newmont Mining (NEM +0.8%).
- Citi sees GG as one of the few large gold producers set to deliver meaningful low-cost production growth over the next several years, and management continues to expect positive free cash flow beginning in Q4 at $1,200/oz. gold; the firm thinks ABX is in a better position to manage free cash generation after divesting high-cost assets, focusing on cost reductions and dialing back major project spending; NEM expects to generate positive free cash flow in 2014 at $1,250/oz. gold and has done a good job managing costs and dialing back capex.
- The firm slaps Sell ratings on Gold Fields (GFI -0.7%), Harmony Gold (HMY +1.1%) and Sibanye Gold (SBGL +1%).
Jan. 23, 2014, 11:43 AM
- South African gold miners are higher - AngloGold Ashanti (AU) +6.3%, Harmony Gold (HMY) +3.2%, Gold Fields (GFI) +2.4%, and Sibanye Gold (SBGL) +2.1% - as they enjoy a reprieve from the start of strikes at the country's platinum mines.
- There was talk of labor strikes in the gold mines too, but the gold miners managed to avert that by challenging the AMCU labor union in court; any potential strike against gold producers is delayed until Jan. 30, and analysts say the union is looking to see how the platinum strikes go before moving forward.
Jan. 17, 2014, 5:37 PM
Jan. 15, 2014, 11:24 AM
- Citi expects South African gold miners will have produced ~6% more gold Q/Q in December, mainly due to the inclusion of Gold Fields' (GFI +1.2%) recently acquired Yilgarn assets and the ramp up of AngloGold’s (AU +2.5%) Tropicana and Kibali projects.
- But bearish fundamentals have not changed, Citi says, maintaining its Neutral rating on GFI but Sell ratings on AU, Harmony Gold (HMY +0.3%) and Sibanye Gold (SBGL +3.2%).
- If Citi is right, the South African gold miners will continue to lose their equity value, although perhaps at a slower pace.
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