Nov. 21, 2013, 11:23 AM
- Gold Fields (GFI -6.1%) continues its slide following yesterday's Q3 report which revealed earnings of $9M vs. a year-ago loss and revenues of $1.33B vs. $1.66B in the prior year.
- OptionMonster believes a large short position in GFI was closed and rolled over, indicating a belief that the miner will remain under pressure at least into early next year.
- GFI shares are down 67% YTD and have spent the last two months consolidating below their 2008 lows, which also could make some traders doubt the likelihood of a bounce.
Nov. 20, 2013, 8:42 AM
- Gold Fields (GFI) reports Q3 net earnings from continuing operations of US$9M vs. a net loss of $129M in Q2 and earnings of $122M in the year-ago quarter.
- Q3 production of 496K oz. was 10% higher than the 451K oz. reported in the June quarter, which brings YTD production to 1.42M oz., which is supportive of earlier full-year guidance of 1.825M-1.9M oz.
- Group all-in sustaining cost for Q3 was US$1,089/oz., 23% lower than Q2's US$1,416/oz.
- Shares -2.2% premarket.
Nov. 1, 2013, 12:57 PM
- Barrick Gold's (ABX -6.2%) planned $3B capital raise may be "prudent and necessary" for the company, but it stinks for shareholders, and shares of other big precious metals miners are tumbling too.
- ABX's move may be sparking fears from shareholders in other miners that they could be next, and that stock offerings of this size could make it hard to raise dividends in the future; "cram-down financing like this is something that companies should consider [only] after their stocks have rallied significantly," Jon Ogg writes.
- NEM -4.7%, GG -3.8%, KGC -3.9%, SLW -3.2%, GFI -1.3%, NGD -2.2%, AUY -3.3%, CDE -3.3%, TAHO -4.9%.
- ETFs: GDX, GDXJ, NUGT, DUST, GLDX, GGGG, RING, PSAU, JNUG.
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. 17, 2013, 3:21 PM
- Gold futures (GLD +3.2%) settle more than $40/oz. higher, boosted by the belief that the debt default deal might prompt the Fed to delay reducing QE.
- "The U.S. debt deal is seen (as) positive for gold by market participants, for good reason, since the whole mess is just being postponed by 3-4 months, which makes a reduction of Fed asset purchases rather unlikely for the time being," Commerzbank says.
- Many probably believed gold would fall if there was no debt default, so a short squeeze likely is helping force prices higher.
- Among the day's biggest equity gainers are gold miners (GDX +6.2%): NEM +4.8%, ABX +5.4%, GG +4.2%, GFI +3.9%, RGLD +7.1%, KGC +4.9%, NGD +5.3%.
- ETFs: IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING.
Oct. 11, 2013, 2:59 PM
- Miners trade notably lower, with the Market Vectors Gold Miners ETF (GDX -2.2%) down sharply, as gold futures slid $28.70/oz. to $1268.20 after dropping nearly $25 in about a minute earlier this morning.
- ABX -3.5%, FNV -3.6%, GG -3.1%, GFI -3.1%, EGO -3.5%, NGD -3.5%, AUQ -3.3%, AUY -2.8%, RGLD -2.9%, NEM -2.1%.
- ETFs: GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING.
Oct. 4, 2013, 2:58 PM
- Gold producers in resource-rich Western Australia state are banding together to resist any increase in royalties on gold sales, fearing a further blow to an industry already battered by falling prices and rising costs.
- Miners have been concerned since the state's premier told the state legislature last week that the current royalty on sales of the metal (2.5%) was "a little light" compared with those for other minerals.
- The group says it is preparing a submission to the government's review before the end of the month and wants meetings with the premier and the state's mines and petroleum minister.
- The biggest producers in the 10-member group are South Africa's Gold Fields (GFI) and U.S.-based Newmont Mining (NEM).
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. 12, 2013, 5:23 PM
- South African miner Gold Fields (GFI) acknowledges the SEC is investigating it for a potentially improper payment to a black economic empowerment fund favored by the ruling African National Congress party related to efforts to acquire a license to mine one of largest gold deposits in the world.
- The disclosure comes a day after South African media accused GFI of burying the results of a "devastating" investigation conducted by U.S. law firm Paul Weiss, which reportedly found the company had “hugely increased" the cut of ANC's chairman in the deal.
- GFI is subject to the SEC’s jurisdiction because it is listed on the NYSE.
Sep. 12, 2013, 9:11 AM
Sep. 10, 2013, 8:31 AM
- Gold Fields (GFI) says it is being investigated by the SEC over a 2010 black empowerment deal concerning the granting of a mining license for its South Deep mine in South Africa.
- In 2010, GFI gave a 9% stake in South Deep to a group of black investors to meet government targets for improving black ownership.
- GFI -1.9% premarket.
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, 8:18 AM
- As a mining strike looms, new Anglo American (AAUKY.PK, AAUKF.PK) CEO Mark Cutifani tells WSJ ~50% of South Africa's gold and platinum operations are operating at a loss and "you will see shafts in platinum and gold close if the wage hike goes badly.”
- Some miners already have begun to sell their South African assets and redirect spending elsewhere; Gold Fields (GFI) last year sold all but one gold mine in the country, and Harmony Gold (HMY) is directing more of its exploration money to Papua New Guinea than to South Africa.
- More labor tension: Anglo American Platinum (AGPPY.PK, AGPPF.PK) will fire 3,300 workers at its South African mines to revive profitability; ~45% of Amplats' business is in South Africa.
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.
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