Mon, Aug. 3, 9:18 AM
Mon, Jul. 20, 10:39 AM
- Several gold miner stocks strike new 52-week lows in early trading, as gold prices plunge below $1,100/oz. overnight and adding pressure to a sector that already faces razor-thin margins.
- Investors have turned sharply negative on gold as the U.S. dollar rises ahead of a likely rise in interest rates, and a report out of China shows lower than expected holdings of the metal.
- While most senior gold miners can generate decent margins at $1,100 gold, many small and mid-tier producers are underwater at the price, and some of the seniors are struggling with heavy debt.
- Hitting new 52-week lows today: ABX -9.3%, GG -7.7%, GFI -10.7%, KGC -9.4%, AGI -6.6%, AU -9.7%, SBGL -7.8%, BTG -9.3%, EGO -2.9%, NGD -8%, AUY -8.8%, RGLD -8.2%, FNV -6.8%, SLW -5%.
- Also lower: NEM -9.4%, AEM -7.9%, NG -7%, GOLD -4.8%, IAG -5.1%, HL -5.4%.
- ETFs: GDX, NUGT, GDXJ, GGN, DUST, SIL, JNUG, GLDX, JDST, SGDM, ASA, SLVP, SILJ, RING, JUNR, PSAU, TGLDX, GDJJ, GDXS, GDXX, GDJS
Mon, Jul. 20, 9:14 AM
Fri, Jul. 17, 2:58 PM
- Barrick Gold (ABX -4.9%) sinks to 24-year lows in Toronto trading, leading a rout among bullion miners as the yellow metal extends its selloff to five-year lows.
- ABX is under particular pressure, as the fall in gold casts doubt on the company’s strategy of shedding assets to pay down its $12.9B debt, as it "becomes harder and harder to sell those assets at any kind of reasonable value if metal prices are unwinding," Macquarie analyst Ron Stewart says.
- ABX reportedly is nearing a deal to sell its Zaldivar copper mine in Chile, and is looking for buyers for its 50% stake in its Kalgoorlie mine, among other properties.
- NEM -2.6%, GG -5.7%, GFI -1.1%, KGC -5.2%, AEM -5.1%, NG -2.2%, AGI -6.6%, AU -5.7%, GOLD -2.5%, SBGL -4.2%, BTG -6.4%, IAG -7.6%, EGO -7.6%, HL -3.5%, NGD -8.4%, AUY -2.9%, RGLD -2.9%, FNV -3.6%, SLW -3.3%.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, SGDM, ASA, SLVP, RING, PSAU, TGLDX, GDXS, GDXX
Mon, Jul. 13, 10:51 AM
- Gold Fields (GFI +3.2%) says it expects to report Q2 production of 535K oz. of gold at an all-in cost of $1,060/oz. when it reports results on Aug. 20.
- Q1's output of 501K oz. marked a 10% drop from the December quarter, at an all-in cost of $1,164/oz, with a poor performance from its South Deep mine in South Africa; a year ago, GFI produced 548K oz. of gold in the quarter at an all-in cost of $1,093/oz.
- GFI maintains its full-year production target at ~2.2M oz. at an all-in cost of $1.075/oz.
Tue, Jun. 30, 10:37 AM
- Gold Fields (GFI +0.3%) is upgraded to Neutral from Sell at Goldman Sachs, which sees upside potential in the short term given the rise in gold prices following the developments in Greece.
- However, Goldman continues to believe the South Deep project remains structurally challenged and that production from other assets is tapering.
- The new mine plan for South Deep will be released next year, and Goldman believes the final steady state guidance could potentially be much lower than the 650K-700K oz. given last year; in the event of a downward reassessment, the firm thinks GFI could need to write down resources/reserves to a significant degree.
Mon, Jun. 22, 5:24 PM
- Gold Fields (NYSE:GFI) says the SEC has recommended no enforcement action against the company after it investigated the sale of a stake in its South Deep mine under a South African program to expand black ownership.
- The deal attracted controversy because it included politically connected people to secure the 2010 mining rights to South Deep, the world’s largest gold deposit after Grasberg in Indonesia.
- South Africa-based GFI is subject to scrutiny from U.S. regulators because it is listed in the U.S.
Tue, Jun. 2, 11:58 AM
- Gold Fields (GFI +5.7%) is upgraded to Outperform from Sector Perform at RBC, which says the shares appear oversold.
- GFI reported disappointing Q1 results, mainly due to operational issues at South Deep and grade declines, but RBC analysts believe the performance is now reflected in the share price, and improved Q2 operational performance could prove a key short-term catalyst.
- RBC says its expects to see improvement in both costs and production, outside of South Africa, as the year progresses, as Q1 weakness was driven by planned grade scheduling.
- The firm notes that most of the South African gold mining industry is now entering wage negotiations, but GFI already has reached a three-year deal with its workers at South Deep, the company's only operation in the country.
Fri, May 22, 7:58 AM
- Gold Fields (NYSE:GFI) is among final bidders competing to acquire the Cowal gold mine in Australia's New South Wales state from Barrick Gold (NYSE:ABX), according to a Bloomberg report.
- GFI and China’s Zijin Mining (OTCPK:ZIJMF) are said to be competing with local suitors Evolution Mining and Independence Group, which have submitted binding bids.
- Analysts say the Cowal mine, which produced 268K oz. of gold last year, may be worth at least $400M, and that ABX could raise as much as $1.1B from divesting both the Cowal and Porgera mines.
Wed, May 13, 2:49 PM
- South Africa's Association of Mineworkers and Construction Union says it wants to more than double the basic pay for entry level workers in the gold mining industry, setting the stage for tough pay talks as the companies battle rising costs and falling profits.
- The country's top bullion producers, including AngloGold Ashanti (NYSE:AU), Sibanye Gold (NYSE:SBGL) and Harmony Gold (NYSE:HMY), say high pay increases would lead to the decline of a struggling industry.
- AMCU also called for a doubling of wages in the platinum sector last year, sparking a long strike, before settling for raises of ~20%/year; platinum miner Lonmin (OTC:LNMIF) said last week it would cut 3,500 jobs at its South African mines.
- The rival the National Union of Mineworkers, vying for popularity with AMCU, secured a wage deal with Gold Fields (NYSE:GFI) in April, and is said to seek up to 75% wage hikes from the rest of the sector.
Thu, May 7, 12:22 PM
- Gold Fields (GFI -10.2%) is sinking after reporting a $14M Q1 net loss compared with $26M in net profit in Q4, dragged down by reduced gold sales and higher costs.
- GFI says Q1 attributable gold equiv. production fell 10% Q/Q to 501K oz., and all-in sustaining costs rose 12% Q/Q to $1,143/oz.
- At the South Deep mine, GFI's last remaining operational asset in South Africa, Q1 output fell 25% to 36.3K oz. because of the slow return to work after the year-end holidays and a four-month safety closure at the end of last year.
- GFI kept its full-year production target of 2.2M oz. intact and forecast all-in costs of $1,075/oz.
Thu, May 7, 9:20 AM
Thu, May 7, 6:23 AM
Mon, Apr. 27, 6:45 PM
- Gold surged above $1,200/oz. today in its best day since January, as U.S. June gold futures settled up 2.4% to $1,203.20/oz. in its best percentage jump since Jan. 15, amid reports Friday that Venezuela's central bank had converted 1.4M oz. of its gold reserves into at least $1B in cash through a swap with Citibank.
- "That was a huge potential seller taken out of the market. It's not an overhang anymore," Dennis Gartman said of the Venezuela deal.
- Other gold watchers say the bigger factor driving prices was the expiration of May options and short covering; an increase of 13K shorts in the market is a positive since those traders could be forced to buy gold when they cover, says Kevin Grady of Phoenix Futures and Options.
- ETFs: GLD, IAU, SGOL, UGL, DGP, GLL, UGLD, DZZ, GLDI, OUNZ, DGL, DGZ, DGLD, AGOL, TBAR, GEUR, UBG, GYEN, BAR
- Miners finished mostly higher: NEM +2.4%, ABX +2.2%, AU +2.6%, GOLD -0.4%, GFI +5.3%, GG +0.9%, SBGL +3%, NGD +3.1%, EGO +1.7%, AUY +1.8%, KGC flat, IAG +4.2%, BTG +1.9%, HL +1.9%, RGLD -0.8%, FNV +0.8%, AGI +1.3%, AUQ +2.3%.
Fri, Apr. 24, 6:50 PM
- In another day of broad losses among in precious metals miners, Newmont Mining (NYSE:NEM) enjoyed a 6.5% surge following strong Q1 results that included impressive cost reductions in gold and copper production.
- J.P. Morgan analysts especially liked the strong first quarter at Batu Hijau and Yanacocha and the deferral of some capex that allowed NEM to generate $344M in free cash flows and pay down $200M in debt; the firm says full-year guidance could be raised if cost reductions can be maintained in Q2.
- Otherwise, it was not a good day for mining equities, following another drop in gold futures which tumbled to their lowest level in more than a month.
- NEM CEO Gary Goldberg expects gold prices to gain ~25% to $1,500/oz. by 2020 on rising demand from China and a weaker dollar; for now, Goldberg says the strong U.S. dollar is “definitely having an adverse effect” on gold prices, and he expects the dollar will “eventually come back off of its highs in the next couple of years."
- In today's trade: ABX -0.9%, AU -4.2%, GG -2.6%, SBGL -7.7%, GOLD -2%, AUY -2.5%, NGD -1.9%, GFI -4.4%, SLW -1%, PAAS -1.6%, EGO -4.1%, RGLD -2.7%, FNV -2.1%, KGC -0.4%, IAG -1.4%, BTG -1.9%, HL -1.9%, AGI -1.6%, AUQ -3.1%.
Wed, Apr. 22, 6:36 PM
- Gold tumbled today to its sharpest single session loss in more than six weeks, after the strong U.S. existing home sales report that raised expectations for a Fed interest rate hike in June.
- U.S. gold futures for June delivery fell $16.20 (-1.4%) to settle at $1,186.90/oz., while silver fell 1.3% to $15.77.
- Among precious metals miners today: ABX -3.4%, AU -4%, GG -2.8%, SBGL -6.8%, GOLD -1.5%, AUY -3.7%, NG -1.9%, GFI -5%, SLW -2.1%, PAAS -3.5%, NEM -3.1%, EGO -1.4%, RGLD -2.1%, FNV -3.4%, KGC -1.7%, IAG -4.1%, BTG -2.5%, HL -3.8%, AGI -5.4%, AUQ -4.4%.
- ETFs: GLD, SLV, GDX, NUGT, IAU, AGQ, DUST, SIL, USLV, SIVR, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, SLVO, GLDI, SGDM, DSLV, OUNZ, SLVP, DGL, DBS, DGZ, RING, DGLD, AGOL, PSAU, USV, TBAR, GEUR, UBG, GYEN, BAR, GDXX
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