Tue, Jun. 23, 11:14 AM
- Goldcorp (GG +2.2%) is upgraded to Action List Buy with a $29 price target at TD Securities, which cites the miner's free cash flow generation, debt reduction, rising production, and lower capex and operating costs.
- "It is time to put away the rear-view mirror" in evaluating GG, the firm says, believing investors are too focused on the company's recent past and not what's coming in the next 12 months, and that its net debt appears to have peaked in Q1 2015.
- TD expects GG to generate $1.3B in free cash flow over the next three years, more than enough to fund a dividend of ~$500M and allow for some debt repayment.
Wed, Jun. 17, 12:59 PM
- Goldcorp (GG -0.6%) may be using the ~$950M in proceeds from selling its 25% stake in Tahoe Resources (TAHO +0.5%) to clean up its balance sheet, but the move sparks analyst concern about a potential major acquisition.
- The TAHO sale will dramatically reduce GG's cash needs, yet GG last week announced it expanded its unsecured line of credit to $3B from $2B; Canaccord analyst Tony Lesiak questions the need for the line of credit increase, and that GG "needs to focus on execution and on the significant organic growth project pipeline and exploration potential already in the company."
- TD Securities' Greg Barnes considers Detour Gold's (OTCPK:DRGDF) Detour Lake one of the few operating assets that would fit with GG’s asset portfolio but thinks talk of a major acquisition is premature, with GG trading near 52-week lows and two new projects still in the production ramp-up phase.
Tue, Jun. 16, 7:17 PM
- Tahoe Resources (NYSE:TAHO) tumbled more than 9% in today's trade on lukewarm investor demand for nearly C$1B worth of the mining company's stock, Reuters reports, citing industry sources.
- Goldcorp (NYSE:GG) announced late Monday it would sell its 25.6% stake in TAHO for C$998M (US$811M) in a bought deal, but joint book runners GMP Securities and BMO Capital Markets reportedly had some difficulty placing the stock at the offering price of C$17.20/share.
- A TAHO spokesperson said "a near $1B deal doesn't materialize in a day," but that the company had heard the offering was going well and could take a few days for the placement to be completed.
- This would not be the first large mining industry bought deal to struggle in recent months, as investment banks had some trouble finding buyers for an $800M stock offering in March by Silver Wheaton.
Tue, Jun. 16, 6:19 AM
- Agnico Eagle Mines (NYSE:AEM) rated new Market Perform, price-target $35.
- Yamana Gold (NYSE:AUY) rated new Market Perform, price-target $3.75.
- Goldcorp (NYSE:GG) rated new Outperform, price-target $22.
- Barrick Gold (NYSE:ABX) rated new Outperform, price-target $16.
- Kinross Gold (NYSE:KGC) rated new Market Perform, price-target $2.75.
- Eldorado Gold (NYSE:EGO) rated new Market Perform, price-target C$6.00.
Mon, Jun. 15, 4:44 PM
- Tahoe Resources (NYSE:TAHO) -6.9% AH after announcing a secondary offering by Goldcorp (NYSE:GG), on a bought deal basis, of ~58M common shares of TAHO at a price of C$17.20/share for gross proceeds of C$998M.
- TAHO says the offering represents the sale of all of GG's interest in the company, and it will not receive any of the proceeds from the offering.
- GG says the sale supports its strategy of divesting non-core assets.
Mon, Jun. 15, 11:24 AM
- Goldcorp (GG -0.8%) is downgraded to Sector Perform from Outperform with a $21 price target, reduced from $24, at RBC Capital, which expects the market will wait for it to successfully deliver on its production and mine development guidance before the shares re-rate higher, given previous failures to meet guidance.
- The firm also believes successful execution is necessary for GG to sustain its current dividend, and that the payout could be at risk below the current gold price, highlighting US$1,175/oz. gold and US$16.50/lb. silver as GG’s net free cash breakeven point, below which the company will need to cut capital spending or borrow to pay its dividend.
Mon, Jun. 8, 12:02 PM
Tue, Jun. 2, 7:57 AM
- Newmont Mining (NYSE:NEM) is in exclusive talks with AngloGold Ashanti (NYSE:AU) as it moves closer toward clinching a deal to buy the latter's Cripple Creek & Victor gold mine in Colorado, Reuters reports.
- If AU agrees to a sale, the asset is likely to fetch a price in the $700M-$800M range, according to the report, which would be well below the $1B initially speculated by analysts.
- Others that may still re-enter the bidding if NEM fails to strike a deal are Canadian miners Iamgold (NYSE:IAG), Kinross (NYSE:KGC), Goldcorp (NYSE:GG) and Yamana (NYSE:AUY); Hecla Mining (NYSE:HL) has said it looked at the mine but decided against making a bid for it.
- AU said in April it was seeking a partner or buyer for the mine as it attempts to cut $3.1B in debt; Cripple Creek & Victor is an open pit mine that produced 211K oz. of gold and 110K oz. of silver in 2014.
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
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