Nov. 28, 2014, 1:21 PM
- Already hit hard over the last two years by declining prices, gold and silver miners saw more pain today as commodity stocks in general got hammered thanks to OPEC's decision not to slash crude production.
- Decliners: ABX -8%. GG -6.1%. AUY -9.8%. KGC -8.2%. GFI -9.9%. SLW -7%. NEM -5.8%. AGI -6.9%. PAAS -9%. AG -15.4%. SSRI -11.6%. CDE -11.4%. HL -8.8%. TAHO -7.8%.
- Previous: Precious metals slide alongside oil; Swiss vote ahead
Nov. 20, 2014, 3:13 PM
- Given the uncertain and volatile outlook for the dollar and thus gold prices, J.P. Morgan's commodities team suggests three "conservative" pair trades it expects to be profitable in a neutral or weaker metal price environment.
- The firm recommends buying Newmont Mining (NYSE:NEM) and selling Barrick Gold (NYSE:ABX), “driven by the idea that the deal where Barrick buys Newmont could be back."
- Buy Agnico Eagle Mines (NYSE:AEM) and sell New Gold (NYSEMKT:NGD), as JPM sees underground mines as more resilient than open pits, and AEM has fallen more sharply than deserved.
- Also, JPM likes buying Silver Wheaton (NYSE:SLW) and selling Coeur Mining (NYSE:CDE), as it believes royalty/streaming companies will be more robust in times of weak metals prices than pure-play miners.
Nov. 5, 2014, 5:36 PM
Nov. 4, 2014, 5:35 PM
- ABTL, ACAS, ACLS, ALNY, ALSK, ANDE, AR, AREX, ASH, ATO, ATSG, AVG, AWK, BALT, BCOR, BIOS, BKD, BREW, BWC, CBS, CDE, CF, CLR, CODI, CPE, CSOD, CTL, CVG, CXO, DATA, DEPO, DK, DPM, DRYS, DVR, DYN, ECOL, ECYT, EFC, ENS, ENSG, ETE, ETP, EXAR, EXXI, FMI, FNV, G, GNW, GPOR, GSM, HOLX, HTCH, IL, INWK, IO, JCOM, KGC, KW, LBTYA, LHCG, LPSN, MBI, MCHX, MCP, MDR, MDWD, MED, MHLD, MIDD, MRIN, MTDR, MTRX, MUSA, MWE, NDLS, NLY, NVAX, NWSA, OILT, ORA, ORIG, OSUR, PAA, PLNR, PMT, PODD, POWR, PPO, PRGN, PRU, PTC, QCOM, QEP, QUAD, RGP, RNDY, RUTH, SB, SBY, SCTY, SD, SKUL, SLF, SSNI, SSRI, STMP, SUSP, SWIR, SWM, SXL, SYMC, SZYM, TCAP, TEAR, TEG, TERP, THOR, TNGO, TPC, TRAK, TROX, TRUE, TS, TSLA, TSRO, TTEC, TXTR, UHAL, VVUS, WBMD, WFM, WMC, WMGI, WR, WTI, WWWW, XPO, Z
Oct. 22, 2014, 3:53 PM
- Coeur Mining (CDE -14.1%) plunges after BMO Capital downgrades shares to Underperform from Market Perform and slashes its stock target price to $4 from $9.50, pointing out signs of "strained" valuation.
- The downgrade comes as BMO describes its view that silver will continue to underperform gold over the next 12 months, and that silver miners "will need to look increasingly toward grade as a mechanism to reduce unit costs at the expense of reserve life."
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. 6, 2014, 8:50 AM
- Coeur Mining (NYSE:CDE) +2.4% premarket after announcing preliminary Q3 production of 4.3M silver oz. (+2% Y/Y) and nearly 65K gold oz. (+3% Y/Y), or 8.2M silver equiv. oz.
- Q3 output at its Rochester, Nev., mine rose 110% Y/Y to 1.86M silver equiv. oz.; due to stronger production from Rochester, CDE increases its FY 2014 expected production range to 17K-18K silver oz., 229K-244K gold oz., and 30.7K-32.6K silver equiv. oz.
- Also announces high-grade drill results from its Kensington gold mine in Alaska, where several holes have returned grades greater than 1.0 oz./ton gold; expects to complete a new resource estimate for Kensington to incorporate the new results by year-end 2014.
Sep. 19, 2014, 3:58 PM
- Gold’s downward spiral continues as the yellow metal closed today at an eight-month low and finishing its third weekly loss in a row, pressured by the dollar’s move higher after Wednesday's Fed policy meeting.
- The FOMC meeting "maintains our belief that the process of U.S. monetary tightening continues, and this will encourage further advances in long-term real yields and the U.S. dollar," Deutsche Bank said today in a note.
- Meanwhile, several gold mining stocks have hit new 52-week lows, including Barrick Gold (ABX -2.5%), Yamana Gold (AUY -3.7%), Kinross Gold (KGC -2.7%) and Coeur Mining (CDE -3.6%).
- ETFs: GLD, SLV, GDX, NUGT, AGQ, IAU, DUST, SIL, USLV, SIVR, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, DSLV, SLVP, DGL, DBS, DGZ, OUNZ, RING, DGLD, AGOL, GGGG, SGDM, PSAU, USV, UBG, BAR, BARS.
Sep. 12, 2014, 5:36 PM
Aug. 6, 2014, 5:52 PM
Aug. 5, 2014, 5:35 PM
- ACAS, AGU, ALDW, ANAD, ANDE, AR, ATML, ATO, AWK, BIOS, BIRT, BKD, BREW, BWC, CDE, CDXS, CF, CLDX, CNVR, CODI, COUP, CPA, CPE, CRL, CSII, CSOD, CTL, CXO, CXW, DCTH, DEPO, DK, DNB, DXCM, DYN, ECOL, EFC, ELON, ENS, ENV, ERII, ESS, ETE, ETP, EVC, EXAR, FLTX, FNV, FOXA, FTK, GEOS, GMCR, GPOR, GTY, HI, HIL, IL, INN, INWK, IO, ITMN, IXYS, JACK, KEG, KND, KW, LGP, LHCG, LNT, MBI, MCP, MG, MHLD, MNTX, MRIN, MTDR, MUSA, MWE, NBIX, NLY, NPSP, NRP, NVAX, NVTL, OILT, OSUR, PAA, PACD, PKT, PMT, PPO, PRI, PRU, PRXL, PTLA, QEP, RAIL, REG, RGP, RIG, RJET, RLOC, RNDY, RXN, SAAS, SAPE, SD, SGI, SLF, SN, SSNI, SSRI, SWM, SXL, SYMC, TCAP, TEG, TEP, THOR, THRX, TNGO, TRMR, TROX, TWO, TXTR, UHAL, UIL, WGL, WR, WTI, XNPT, YY, ZU
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. 8, 2014, 5:53 PM
- Coeur Mining (CDE) reports preliminary Q2 production of 4.5M oz. of silver and ~61K oz. of gold, or 8.1M silver equiv. oz., a 7% Q/Q increase.
- At CDE's Rochester mine in Nevada, silver production rose 48% and gold production gained 13% Q/Q, resulting in its highest quarterly silver equiv. production since Q3 2007; expects further growth in H2 2014 due to the continued ramp-up of production from the Stage III leach pad.
- At Palmarejo in Mexico, CDE says lower processing rates, higher recoveries and higher grades were consistent with its strategy of transitioning the mine to a higher-margin, underground operation; expects further increases in recovery rates in H2 due to improved management of the sources of ore.
Jun. 24, 2014, 3:35 PM
- Coeur Mining (CDE -0.1%) isn't getting help from some positive analyst reports today; Sterne Agee reiterates its Buy rating and awards shares a Street-high $18 price target, BMO upgrades CDE to Market Perform from Underperform and raises its price target to $9.50 from $7, and Cowen lifts its target to $10.49 from $9.42.
- Sterne Agee calls CDE its favorite silver-oriented equity, and believes the new gold streaming agreement with Franco Nevada will improve the economics of the Palmarejo mine; together with the decision to place Guadalupe into production, it should result in extended mine life and significantly higher asset value for Palmarejo.
- BMO thinks the changes to the streaming agreement will reduce CDE's production costs and raise its cash flow.
Jun. 23, 2014, 4:56 PM
- Coeur Mining (CDE) says it plans to complete development of the Guadalupe underground mine at its Palmarejo operation in Mexico and expects initial production to begin during Q1 of 2015.
- CDE says the new development and production plan supports its strategy to transition the mine to a higher-margin, longer-life, underground-only operation.
- Production at Guadalupe is expected to average 1,300 tons/day in 2015 and 1,500 tons/day in 2016-18.
- CDE also announces entry into a new gold streaming agreement with Franco-Nevada (FNV).
May. 28, 2014, 11:28 AM
- Coeur Mining (CDE -3.5%) says it has put its Joaquin silver and gold prospect in Argentina on hold, citing the inability to get an adequate return to compensate for the risks involved in getting capital in and out of the country.
- The project was in an advanced exploration stage, the Argentine government has imposed controls on capital flows; the mining sector also has been hurt by an unstable exchange rate, high inflation and a penchant by provincial governments to arbitrarily increase royalties.
- CDE also expects to release a feasibility study for its $350M La Preciosa precious metals project in Mexico later this year, but mining sector analysts expect that project also will be put on hold.
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