Nov. 7, 2013, 8:59 AM
- Randgold Resources (GOLD) +5.3% premarket after posting Q3 net profit of $81.3M, down from $103.3M in the year-ago quarter, and basic EPS of $0.88, down from $1.12 a year ago but above analysts' consensus estimate of $0.64.
- GOLD produced 233,677 oz. in Q3, +14% Y/Y, while gold sales rose on the year to 348,688 oz., +9.5%; says it is on track to produce 550K oz. in Q4.
- Forecasts the Kibali mine, a joint-venture with AngloGold Ashanti (AU) which began commercial production in September, will produce more than 30K oz. of gold this year and 550K oz. next year.
Nov. 6, 2013, 9:15 AM
- Top 10 Gainers: MSPD +69%. MCHX +22%. REGI +14%. BCOR +12%. OXBT +10%. AXAS +10%. MYGN +9%. YRCW +7%. VRNG +7%. ANV +7%. AU +6%. ABIO +6%. Z +6%. OPEN +5%. RMTI +5%. NQ +5%. ECOM +5%.
- Top 10 Losers: STP -41%. CRIS -18%. TSLA -13%. MELI -11%. TNGO -10%. SZYM -10%. NAVB -7%. CYTX -7%. ANF -7%. CTRP -6%.
Nov. 6, 2013, 2:57 AM
- AngloGold's (AU) profit attributable to shareholders collapsed to $1M from $168M a year earlier, although the figure marked an improvement from Q2, when a writedown of $2.4B - a result of falling gold prices - caused the miner to make a loss.
- Adjusted profit more than doubled to $576M.
- Production +1.3% to 1.043M troy ounces; gold price received -19% to $1,327/oz.
- AngloGold is exiting a number of exploration projects in 13 "non-core" countries as part of a restructuring. The company is "trying to close a sale" of its small Navachab operation in Namibia and it's cutting 430 positions at its troubled Obuasi mine in Ghana. (PR)
Oct. 21, 2013, 12:49 PM
- HSBC upgraded its stock ratings on various gold mining companies, noting that recent weak stock performance has "opened up value again," demand for gold remains strong, lower prices are resulting in reduced supply.
- The firm expects gold prices to rebound again, bringing better value in some gold miners, particularly Barrick Gold (ABX +1.9%), Goldcorp (GG +2.1%) and IAMGOLD (IAG +3%), upgraded to Overweight from Neutral (I, II, III); it also raises Agnico-Eagle Mines (AEM +0.4%), Yamana Gold (AUY +2%) and AngloGold (AU +0.3%) to Neutral from Underweight (I, II, III).
- HSBC, however, cuts Gold Fields (GFI +0.2%) to Underweight from Neutral, in part due to higher risk related to an SEC investigation.
- ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING.
Oct. 16, 2013, 5:35 PM
Oct. 14, 2013, 8:49 AM
- Norway's government decides to exclude five companies from the investment portfolio of the country's $790B oil fund on concerns about their environmental behavior and warns others, including Royal Dutch Shell (RDS.A, RDS.B) and Eni (E).
- The ethics council recommended to place the activities of Shell and Eni in the Niger Delta under observation, but the Ministry of Finance declined.
- The ministry also asked Norges Bank to discuss potential environmental damage with AngloGold Ashanti (AU); the ethics council wanted to exclude AU from investment, but Norges Bank's assessment was that active ownership strategies could contribute positively.
Oct. 1, 2013, 12:58 PM
- Fitch is calling a gold rebound unlikely and saying that it no longer believes in a $1,200 gold price floor, and as a result expects gold producers to reassess their dividend policies.
- Fitch thinks gold at $1,000/oz. would put the ratings of some gold miners under significant pressure if no serious cost cutting and cash conservation measures are taken.
- Recall that Barrick Gold (ABX -3.2%) cut its last dividend to $0.05 from $0.20, Kinross Gold (KGC -2.5%) suspended its dividend over the summer, and Gold Fields (GFI -3.2%) said in August it would not declare an interim dividend.
- Also: NEM -3.7%, SLW -3.4%, GG -3%, AU -3% AUY -2.9%, CDE -2.4%, IAG -2.3%, AUQ -2.1%, HMY -1.7%, NGD -1.5%.
- ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING, GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI.
Sep. 25, 2013, 11:47 AM
- Though gold futures are up ~1.5% today, Citi remains negative on South African gold miners because of weak balance sheets and negative cash flows.
- Sell-rated AngloGold (AU +5.7%) is "badly positioned" given a weak balance sheet, high capex commitments and the failure to dispose of high-cost, non-core assets, Citi says.
- On Harmony Gold (HMY +3.2%), another Sell, the firm finds the touted Wafi/Golpu project unfeasible; the firm had estimated the project to have a negative NPV of $595M in a year-old analysis when its average gold price assumptions were ~30% above current spot prices.
- The analysts have the most positive outlook on Gold Fields (GFI +1.5%), which is rated only at Neutral.
Sep. 24, 2013, 11:49 AM
- Randgold Resources (GOLD -0.8%) says its giant Kibali gold project in the Congo has successfully started production ahead of its original year-end target and is still in line with capital forecasts.
- With the earlier start-up, Kibali is expected to exceed its production target of 30K oz. for the rest of this year, and is on track to meet next year's forecast of 550K oz.
- The project is being developed in two phases; the plant's oxide circuit has been commissioned early and is treating oxide ore from the stockpile of more than 1M metric tons already produced by the open pit mine.
- Kibali is a joint venture between GOLD (45%), AngloGold Ashanti (AU, 45%) and a Congolese partner.
Sep. 23, 2013, 5:39 PM
Sep. 16, 2013, 8:49 AM
- Iamgold (IAG) -4.2% premarket after announcing the suspension of excavation activities at the Yatela mine in Mali, citing the drop in gold prices and reduced profit margin.
- Processing of heap leach pads and ore already mined will continue until the end of 2016.
- IAG owns a 40% stake in the mine; AngloGold Ashanti (AU) also owns 40% while the government of Mali has a 20% stake.
Sep. 6, 2013, 2:11 PM
- Some striking South African gold miners returned to work last night after accepting an 8% pay increase from companies including AngloGold (AU +2.6%) and Sibanye Gold (SBGL +3.6%).
- The offer has been accepted by most members of the National Union of Mineworkers, which represents two-thirds of the country's gold miners.
- However, 10 of Harmony Gold’s (HMY -0.6%) 11 mines continue to be affected by the strike, and workers at Gold Fields' (GFI +1.3%) South Deep mine also aren’t yet back at work, but they may report for duty later today.
- AU’s six mines report normal shifts, and two of SBGL’s three sites are operating with the remaining mine expected to resume tonight.
Aug. 30, 2013, 7:58 AM
- South Africa’s four biggest gold producers - AngloGold (AU), Gold Fields (GFI), Harmony Gold (HMY) and Sibanye Gold (SBGL) - are hoarding cash and lining up access to more as they prepare for the first industry-wide strike since 2011, as the National Union of Mineworkers says its members will lay down their tools on Sept. 3.
- The companies seem unwilling to meet the labor union’s terms; “The gold mines are taking action to put their operations into positive cash flow at this gold price," a Johannesburg-based analyst at SBG Securities says. "Hunkering down on wages is part of that strategic plan. They can’t afford it."
Aug. 28, 2013, 7:07 PM
- South Africa's National Union of Mineworkers will give gold producers on Friday 48-hour notice of its intention to strike over deadlocked wage talks, Reuters reports.
- Negotiators on behalf of gold producers said yesterday it had made a final offer to riase basic wages by 6%-6.5%, depending on activity, which the union rejected.
- The companies say steeper increases are unrealistic, as their operations are being hurt by rising costs and falling bullion prices.
- AngloGold (AU), Gold Fields (GFI) and Harmony Gold (HMY) lost 5.1%, 4.6% and 4.9%, respectively.
Aug. 27, 2013, 5:15 PM
- Gold (GLD +0.9%) benefited from today's risk-off investment climate but gold stocks are stocks first and gold plays second (if that), as the miners (GDX -4.2%) finished among the day's worst performers; they also tend to get hit hard by rising oil prices.
- BVN -6.8%, NGD -6.1%, CDE -5.7%, AUQ -5.6%, IAG -5.3%, SLW -4.9%, KGC -4.4%, AUY -4.4%, GG -4.3%, RGLD -4.2%, NEM -3.5%, ABX -3.4%, AU -3.1%, GFI -2.5%, HMY -2%.
- ETFs: GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING, SIL, SLVP, SILJ.
Aug. 22, 2013, 8:28 AM
- South Africa's labor unrest is spreading, as tens of thousands of construction workers prepare to lay down their tools next week and gold mining unions plan to call a strike over wages.
- The National Union of Mineworkers says it will consult members in the coming days to discuss strike action; NUM represents ~64% of ~140K South African gold miners, where major operators include AngloGold (AU), Gold Fields (GFI), Harmony (HMY) and Sibanye Gold (SBGL).
- A construction stoppage would affect major companies such as Wilson Bayly Holmes Ovcon, Aveng (AVEPY.PK) and Group Five.
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