Wed, May 13, 12:44 PM
- Goldcorp's (GG +3.6%) stock performance has lagged its peers YTD on concerns but TD Securities analyst Greg Barnes, in reiterating a Buy rating, thinks concerns about the balance sheet are overblown and shares will reverse as production and cash flow ramp up over the rest of the year.
- Barnes says GG’s net debt peaked in Q1 at ~US$3.5B, and expects the company’s debt ratios will decrease sharply this year as gold production ramps up from the new Cerro Negro and Eleonore mines.
- GG and other gold miners are higher today along with the price of gold, which has moved above $1,200/oz. following weaker than expected U.S. retail sales data that reinforces the view that a June interest rate hike is not likely to occur.
Mon, May 4, 11:49 AM
Thu, Apr. 30, 12:42 PM
- Goldcorp (GG -6.8%) sinks to lows of the day after Q1 earnings fell far short of analyst expectations, as lower gold prices and higher cash costs outweighed increased gold production.
- GG says its Q1 average realized gold price fell to $1,217/oz. from $1,297 a year earlier; cash costs also were higher, with all-in sustaining costs rising 5% to $885/oz.
- Q1 gold production rose to 724.8K oz. from 679.9K oz. in the year-ago quarter, while silver production fell to 8.5M oz. from 9.6M.
- For the full year, GG reaffirms its guidance for production of 3.3M-3.6M oz., driven primarily by new contributions from Cerro Negro and Éléonore, at costs of $875-$950/oz.; the miner also backed guidance for capital spending of $1.2B-$1.4B for the year.
- However, the company raises its tax guidance, now expecting an annual effective tax rate of 45% in 2015 on adjusted net earnings, with a 39% effective tax rate for each of the year's final three quarters.
Thu, Apr. 30, 8:07 AM
Wed, Apr. 29, 5:30 PM
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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
Mon, Apr. 13, 7:00 AM
- AngloGold Ashanti (NYSE:AU) is entering second-round talks with Newmont Mining (NYSE:NEM) and Kinross Gold (NYSE:KGC) for its Cripple Creek & Victor mine in the U.S., FT reports.
- Iamgold (NYSE:IAG) and Goldcorp (NYSE:GG) have also expressed interest for part or all of Cripple Creek.
- AngloGold says the sale is part of an "objective to simplify and improve the overall quality of its portfolio." It could also raise up to $1B and help the South African group cut its debt after a plan for a rights issue failed last year.
- AU -1.4% premarket
Fri, Apr. 10, 4:58 PM
- Credit Suisse sees potential for a near-term rally in gold prices, and expects copper prices to do well this year.
- The firm upgrades First Quantum Minerals (OTCPK:FQVLF) to Outperform from Neutral on positive copper and stock re-rating catalysts in H2 2015, and likes HudBay Minerals (NYSE:HBM) and Tahoe Resources (NYSE:TAHO); it downgrades Teck Resources (NYSE:TCK) to Neutral from Outperform based on a weaker outlook for coking coal and valuation.
- Among gold miners, CS prefers Agnico Eagle Mines (NYSE:AEM) for its lower cost assets, operational consistency, strong free cash flow and organic exploration and growth opportunities, and Goldcorp (NYSE:GG) for its growth and relatively strong balance sheet; Yamana Gold (NYSE:AUY) and Detour Gold (OTCPK:DRGDF) provide leverage to a gold price rally.
Thu, Apr. 9, 10:23 AM
- Goldcorp (GG -0.5%), now holding its annual investor day, says Q1 gold production totaled 724.8K oz. and expects all-in sustaining costs at ~$900/oz. (.pdf)
- GG also reiterates FY 2015 production guidance of 3.3M-3.6M oz. of gold and all-in costs of $875-$950/oz.
- As previously reported, 2015 gold production is expected to be weighted to H2 of the year due primarily to new mine ramp-ups and the planned mine sequence at Peñasquito.
Wed, Apr. 8, 5:46 PM
- McEwen Mining (NYSE:MUX) fell 5.6% in today's trade after yesterday's news that 900 kg of gold-bearing concentrate containing 7K oz. of gold - ~$8.4M in potential revenue - was stolen from its refinery in Mexico's Sinaloa state.
- Armed robberies of significant quantities of gold are not common, but operators in northern Mexico have been targeted in the past as the region is associated with cartels and gangs.
- The robbery raises concerns about other companies with exposure in northern Mexico, which include AGI, AUQ, CDE, PPP and TGD; among those with operations nearby are GG, PAAS, GPL, OTCPK:FNLPF and OTCQX:SMNPF.
Tue, Apr. 7, 12:59 PM
Mon, Apr. 6, 10:21 AM
- Goldcorp (GG +3.3%) agrees to sell its 40% stake in the South Arturo mine project in Nevada to Premier Gold Mines (OTCPK:PIRGF).
- Barrick Gold (NYSE:ABX) is 60% owner and operator of the project and has right of first refusal.
- Premier agrees to pay GG $20M at closing and to transfer 5% of its interest in the Rahill-Bonznsa joint venture in Red Lake, Ontario, where GG has one of its major mines; in turn, GG has agreed to invest $12.5M in Premier.
Wed, Apr. 1, 11:44 AM
- Goldcorp (GG +3.7%) says its Eleonore mine in Quebec has achieved commercial production and is expected to produce 290K-330K oz. of gold this year, with production weighted towards H2.
- For accounting purposes, GG says it will begin recognizing revenues from the sale of gold and mine operating costs in its consolidated statement of earnings effective April 1.
Mon, Mar. 16, 10:53 AM
- Three Goldcorp (GG -0.4%) employees have been found dead after they were believed to have been abducted in southwestern Mexico's Guerrero state, the same area where 43 teachers were abducted and massacred last year.
- State officials had said recently that four company employees had possibly been kidnapped; the fourth employee apparently has been freed.
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