Oct. 6, 2014, 2:45 PM
- Gold prices bounce off 15-month lows to reclaim $1,200/oz. as the dollar rally pauses, helping strengthen shares of precious metals miners: AU +4.4%, GFI +3%, IAG +1.9%, BTG +3%, GG +2.2%, NGD +1.5%, KGC +1.6%, AGI +1.6%, RGLD +1%, SLW +2.1%.
- Sterne Agee analysts Michael Dudas and Satyadeep Jain foresee gold and silver prices trending higher, with gold averaging $1,400/oz. in 2015 and $1,450 in 2016 and silver averaging $19 next year and $21 in 2016, as “global demand remains firm, liquidity remains ample and the dollar appears overbought.”
- With investor sentiment still skeptical, Sterne thinks any supportive macro news flow could provide fuel for a rally; the firm rate Newmont Mining (NEM +1.5%), Agnico-Eagle Mines (AEM +2.4%), Coeur Mining (CDE +1.3%) and Gold Resource (GORO +0.2%) as Buys, with Barrick Gold (ABX +0.5%), Hecla Mining (HL +4.3%) and Pan American Silver (PAAS +1.5%) rated Neutral.
- ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, DGL, DBS, DGZ, OUNZ, DGLD, AGOL, DBP, TBAR, USV, UBG, JJP, GLDE, BAR, GYEN, GEUR, RGRP, BARS, GGBP, BLNG
Oct. 3, 2014, 5:36 PM
Sep. 8, 2014, 5:17 PM
- Agnico Eagle Mines (NYSE:AEM) agrees to acquire Canadian precious metals exploration company Cayden Resources (OTCQX:CDKNF) for ~C$205M, or C$3.79/share.
- Cayden owns, has options to acquire or has staked, concessions constituting a 100% interest in Mexico's El BarqueHo property, which contains a significant epithermal bonanza type gold vein and disseminated stockwork system, as well as other Mexican properties.
Aug. 14, 2014, 10:41 AM
- Agnico-Eagle Mines (AEM -0.4%) released updated mineral reserves and resources for the Canadian Malartic mine, owned jointly with Yamana Gold (AUY +0.7%), which shows a decrease of ~60K oz. to the reserve base from previous estimates published by Osisko Mining after taking into account a 5% royalty payable to Osisko.
- Proven and probable in-pit mineral reserves are 8.9M oz. of gold based on a US$1,300/oz. gold.
- Raymond James analysts say their initial view of the report indicates a neutral impact to each company’s net asset value.
Jul. 31, 2014, 11:35 AM
- Agnico Eagle Mines (AEM -9%) has a defender as shares are pummeled today following a disappointing Q2 earnings report, with Sterne Agee's Michael Dudas reiterating his Buy rating and $48 price target.
- AEM is a leading, well-managed mining equity that has effectively managed the down cycle in precious metals, Dudas says, noting that while Q2 estimates were off due to slightly lower metal price realizations and other line items, management raised 2014 production and lowered cost guidance on continued strong performance and the Osisko acquisition completion.
- AEM's mid-year exploration update signals potential for resource expansion at Meliadine and Kittila, the analyst adds.
Jul. 30, 2014, 5:34 PM
- Agnico Eagle Mines (NYSE:AEM) -1.3% AH after Q2 earnings and revenues miss analyst expectations.
- Payable gold production in Q2 totaled ~326K oz., including 11,878 oz. from the Canadian Malartic mine, up 45% Y/Y, at a cash cost of $626/oz. vs. $785/oz. in the year-ago quarter; AEM cites higher grades at Meadowbank and contributions from commercial production at Goldex and La India.
- Raises FY 2014 production guidance, now seeing 1.35M-1.37M oz., with total cash costs of $650-$675/oz.; all-in sustaining costs are unchanged at $990/oz.
- In a mid-year exploration update, AEM highlights continued expansion at its IVR discovery in Nunavut, a new deep intersection at Kittila, and technical studies progress at the Meliadine and Akasaba West projects.
Jul. 30, 2014, 5:19 PM
Jul. 29, 2014, 5:35 PM
- ABX, AEL, AEM, AKAM, ALB, ALL, ALLE, AMC, ANIK, ARII, ASGN, ATEN, ATW, AUY, AVG, BALT, BGC, BMRN, CATM, CAVM, CBT, CENX, CHDN, CJES, CLUB, CMO, CNL, CNW, CODE, COHR, CTRP, CW, CWT, DDR, DRE, DRIV, EGN, EHTH, ELGX, ENTR, EQIX, EQY, ESRT, ESV, EXL, EXR, FBHS, FEIC, FISH, FMC, FNF, FOE, FORM, FORR, GLUU, HIG, HK, HOLX, HOS, HR, HTH, INT, IPI, ISIL, KBR, KEX, KGC, KRFT, KS, LGCY, LNC, LOCK, LPSN, LRCX, MAA, MANT, MDAS, MEOH, MET, MOBL, MOH, MTGE, MTW, MUR, NANO, NE, NEWP, NOW, OI, OTEX, PDM, PEIX, PGTI, PPC, PVA, QUIK, RKUS, ROVI, RRTS, SAM, SBRA, SCI, SFLY, SIMG, SPN, SPRT, SSS, STAA, STAG, STMP, STR, SU, SZYM, TCO, TGB, TGI, TS, TSO, TTEK, TTMI, TWTC, UNM, VGR, VPRT, WDC, WFM, WLL, WMB, WPZ, WSTL, WTW, YELP
Jul. 14, 2014, 11:29 AM
- Precious metals miners are broadly lower as gold futures head for their biggest daily drop of 2014, plunging $29.30, or 2.2%, to $1,308.10/oz.
- Physical demand has remained short of expectations, Commerzbank's Eugen Weinberg says, and India's decision to maintain a 10% import duty on gold and silver likely will dampen future gold demand expectations from the country.
- Barclays, which expects gold to drop to $1,200/oz. by Q3, also expresses caution, saying recent gains across the metals complex look toppy.
- ABX -1.2%, NEM -1.7%, GG -2.4%, KGC -1.8%, AEM -1.4%, AUY -1.4%, EGO -3%, NGD -2.8%, FNV -2.4%, AGI -2.6%, AU -2.2%, IAG -1.9%, GFI -3.4%, BTG -2.1%, NG -0.7%, SLW -2.1%.
- ETFs: GLD, SLV, GDX, NUGT, AGQ, IAU, DUST, SIL, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLDX, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, SLVP, DGL, DBS, GLTR, DGZ, RING, AGOL, DGLD, OUNZ, DBP, GGGG, WITE, PSAU, TBAR, USV, UBG, JJP, GLDE, GYEN, GLDL, RGRP, GLDS, GEUR, GGBP, BLNG
Jul. 10, 2014, 3:56 PM
- Agnico Eagle Mines (AEM -1.6%) fails to hold early gains after announcing it exercised the 19.8M warrants of Pershimco Resources (RSPRF) it acquired in January.
- Sterne Agee had raised its price target for AEM to $48 from $42, noting that continued careful cost and capital management with upside potential generated by the newly acquired, co-owned Malartic mine should allow for earnings, cash flow and multiple improvement; as gold and silver prices grind higher, AEM should continue to outperform.
- The firm is more positive generally on the gold mining sector, noting the aggressive restructuring of operations for a $1.1K-$1.2K/oz. gold market; besides AEM, it likes Coeur Mining (CDE), Newmont Mining (NEM) and Gold Resource (GORO).
Jul. 10, 2014, 10:54 AM
- Eldorado Gold (EGO -0.6%) is downgraded to Hold from Buy with a $9 price target at Canaccord, which notes that shares have outperformed gold miner competitors by 14%.
- The firm says EGO is experiencing a closing gap in valuation due to its expansion plan with its Kisladag, Olympias and Skouries assets, leading it to take a more conservative approach on the shares.
- EGO is one of the few major gold miners not sporting a gain in early trade, as overseas events have boosted the sector: NEM +1%, GG +1.2%, ABX +1.3%, KGC +1%, AEM +1.5%, AUY +2.4%, NGD +3.2%, FNV +1.9%, AGI +0.9%, AU +0.5%, BTG +0.3%, GFI -0.5%, IAG -1.3%.
Jun. 20, 2014, 3:22 PM
- It's a good idea to have exposure to gold stocks in one's portfolio, say JPMorgan analyst John Bridges and team, but beware of sector plays (GDX -1.3%), and instead pick and choose carefully.
- Goldcorp (G +0.1%) is a "simple decision stock," says the team, thanks to its strong balance sheet, growth profile, and disciplined management. Names like Barrick (ABX -1.2%), Newmont (NEM +1.1%), and Kinross (KGC -1.9%) would fare better in a gold bull market, but today's "back-to-basics phase" means valuations are driven by strong operations and accretive deals.
- Another theme is to own players with operations in the safest locations, an idea paying off for Agnico (AEM +0.7%), but the team also recently initiated B2Gold (BTG +1.1%) with positive coverage on the idea some companies can learn how to operate successfully in "more complex locations."
- Another favorite is laggard Buenaventura (BVN -0.5%) which is likely to see improved results in H2.
Jun. 17, 2014, 12:26 PM
- Agnico-Eagle Mines (AEM +0.5%) is upgraded to Buy from Hold with a $42 price target, up from $31, at TD Securities following the closing of its acquisition of Osisko Mining with Yamana Gold.
- TD says AEM has all of the hallmarks it looks for in a gold equity: The company is generating free cash flow, its projects are in relatively safe jurisdictions, its balance sheet is sound, and production is expected to grow over the next three years.
- TD estimates the Osisko deal is accretive to AEM’s 2015 EPS by 4%, cash flow/share by 5% and net asset value by 5%; the firm forecasts the addition of Canadian Malartic will allow AEM to generate ~$300M/year in free cash flow that may be used to fund the company’s next generation of mines.
- Also, BMO raises its rating on AEM to Outperform from Market Perform and hikes its price target to $44 from $37.
May 29, 2014, 7:50 AM| 1 Comment
May 15, 2014, 5:53 PM
- John Paulson maintained his place as the biggest shareholder in the SPDR Gold Trust ETF (GLD) as of the end of Q1, keeping his 10.2M-share stake valued at nearly $1.3B while tinkering around the edges of some single-company bets in the mining sector.
- Paulson cut his stake in Freeport McMoRan (FCX) by a third and in AngloGold Ashanti (AU) by ~10%, while holding steady on positions in Agnico Eagle Mines (AEM), Allied Nevada (ANV), Gold Fields (GFI), Iamgold (IAG) and Randgold Resources (GOLD).
- His biggest new positions came in Verizon (VZ), buying ~8.75M shares worth $415.9M, and CBS, acquiring a ~4.47M-share stake worth $276.6M; he more than doubled holdings in (GM, $138M) and Cobalt Energy (CIE, $499M) while cutting his stake in Hess (HES) by 62%.
May 2, 2014, 9:18 AM
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