Thu, Aug. 20, 2:29 PM
- Alongside interest rate sensitive names, the gold miners are well-bid as the major averages tumble.
- The yellow metal itself is higher by 2.15% to $1,152 per ounce.
- Gold Fields (GFI +15.1%), AngloGold Ashanti (AU +11.2%), Sibanye Gold (SBGL +11.3%), Alamos Gold (AGI +9.7%), IAMGOLD (IAG +6.1%), Randgold (GOLD +5.6%), Barrick (ABX +4.9%), Newmont (NEM +3.7%), Kincross (KGC +2.6%), Goldcorp (GG +3.2%).
Thu, Aug. 13, 2:58 PM
- Goldcorp (GG -5.2%) is well positioned to identify strategic M&A opportunities following strong Q2 results with further improvement expected, proceeds from the Tahoe sale, an expanded credit facility and additional capital after its dividend cut, RBC analyst Steven Walker says.
- Walker expects GG to identify its non-core mines that could be spun out like Tahoe and higher-quality new mines and projects identified for the portfolio; candidates for non-core assets include the Los Filos and Porcupine mines, each forecast to produce 275K-300K oz./year of gold, or 8%-9% of the production profile, so any acquisition should contribute at least 10% to production.
- Walker has a Sector Perform rating on GG and a $21 price target.
Wed, Aug. 12, 3:46 PM
- China's moves to devalue the yuan and the potential for further devaluation have favorably shifted the risk/reward for stocks of precious metal miners, Deutsche Bank says as it upgrades Newmont Mining (NEM +6.1%) and Barrick Gold (ABX +5.2%) to Buy from Hold, citing improving balance sheets and share pullbacks the firm views as overdone compared to the move in gold prices.
- The firm notes 82% of ABX's and NEM's estimated 2016 revenues come from gold; Kinross Gold (KGC +2.8%) and Goldcorp (GG +4.9%) derive a respective 97% and 73% of their expected 2016 revenues from gold.
- Among silver miners, Deutsche Bank upgrades Pan American Silver (PAAS +6.1%) and Hecla Mining (HL +7.6%) to Buy from Hold, citing their cost exposures outside the U.S. and their respective 26% and 38% gold exposure.
Thu, Jul. 30, 9:59 AM
- Goldcorp (GG -2.1%) opens lower after saying it will cut its dividend by 60% even though it has a strong balance sheet compared to many of its peers, while reporting slightly better than expected Q2 earnings as well as improved production and cost forecasts.
- GG says its move to cut the cut the monthly payout to US$0.02/share from $0.05 will save nearly $300M/year.
- Q2 gold sales totaled 903K oz. on production of 908K oz., vs. sales of 639.5K oz. on production of 648.7K oz. in the year-ago quarter; the quarterly record was driven by higher grades at Penasquito in Mexico and an ongoing ramp-up at Cerro Negro in Argentina, but the average realized price dropped to $1,189/oz. from $1,296/oz.
- Q2 all-in sustaining costs were $846/oz. of gold compared to $852/oz. in the year-ago quarter.
- GG says it sees 2015 production at the high end of its forecast of 3.3M-3.6M oz., with all-in sustaining costs at $850-$900/oz., down from an earlier estimate of $875-$950/oz.
- In addition to the dividend cut, GG has taken a couple of other measures in recent weeks to improve its liquidity: It sold its take in Tahoe Resources for nearly $1B, and expanded a credit facility by $1B.
Fri, Jul. 24, 5:40 PM
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
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.
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.
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.
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. 9, 11:57 AM
- Four workers at Goldcorp's (GG -2.3%) Los Filos mine in Mexico's Guerrero state have gone missing and were possibly kidnapped, the state attorney general’s office says.
- Guerrero state has the highest homicide rate in the country and was where 43 student teachers were abducted in September by corrupt police and apparently massacred by drug gang members.
Fri, Mar. 6, 2:42 PM
- Precious metals miners are bludgeoned as April Comex gold tumbles 2.7% to $1,164.30/oz. for its lowest settlement of the year so far.
- The culprit was the upbeat February jobs report, which sparked fears that the improving economy will prompt the Fed to hike interest rates sooner rather than later.
- ABX -6%, GG -6.6%, NEM -7.9%, AU -6.1%, AUY -6.6%, KGC -7.8%, SLW -3.4%, GOLD -5.4%, EGO -5%, GFI -7.9%, HL -10.4%, RGLD -8.6%, FNV -3.2%, NG -4.3%, SBGL -6.4%, PAAS -4.3%,BTG -6.5%, IAG -6.2%, AUQ -5.6%, AGI -2.8%.
- Precious metals ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, OUNZ, DGL, DBS, GLTR, DGZ, DGLD, AGOL, DBP, WITE, TBAR, USV, UBG, JJP, BAR, GYEN, GEUR, BARS, RGRP, BLNG
- Precious metals mining ETFs: GDX, NUGT, DUST, SIL, GLDX, SLVP, RING, SGDM, PSAU, GDXX
Thu, Feb. 19, 10:26 AM
- Goldcorp (GG -3.2%) missed Q4 earnings and revenue expectations, as lower prices and higher costs offset a big jump in production.
- GG's unadjusted $2.4B loss in Q4 was mostly attributable to a $2.3B writedown on its Cerro Negro gold mine in Argentina, which achieved commercial production just after the end of Q4; GG previously had warned it could take a charge of up to $2.7B on the project.
- Q4 gold production totaled a record 890.9K oz., up from 768.9K oz. in the year-ago period, but all-in sustaining costs were much higher at $1,035/oz. from $810/oz. a year earlier.
- GG forecasts 2015 production to rise ~20% Y/Y to 3.3M-3.6M oz. and all-in sustaining costs of $875-$950/oz.; plans capital spending for the year at $1.2B-$1.4B.
- GG expects major contributions from its new operations at Cerro Negro, Eleonore and Cochenour (still in development); Eleonore reached production in October but produced only 18.3K oz. due to issues with a tailings filter press system that the company says have been resolved.
- Also announced proven and probable mineral reserves of 49.6M oz. of gold and 789M oz. of silver.
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