Friday, May 3, 2:13 PM
As cheaper gold makes South African mines unprofitable to operate, Goldman Sachs slaps Sell ratings on AngloGold (AU -1.2%) and Sibanye (SBGL -5.1%) due to their high exposure to the country. The firm also thinks attempts to reduce costs by reducing labor or closing mines could be met with strikes or government interference. Goldman's best rating - Neutral - is saved for Randgold (GOLD -0.2%).
Comment![Commodities, Quick Ideas, On the Move]
Thursday, May 2, 12:28 PM
Gold is up today but miners are mixed, as Goldcorp (GG -0.6%) and Randgold (GOLD +0.4%) miss estimates (I, II), and UBS downgrades Gold Fields (GFI -2.5%) to Neutral from Buy because it failed to identity any strong stock-specific catalysts. UBS also worries about the stability of GFI's dividend at current gold prices; if prices hold, the firm says it would need to cut earnings estimates by ~40%.
1 Comment[Commodities, Earnings, Quick Ideas, On the Move]
Thursday, May 2, 7:56 AM
More on Randgold's (GOLD) Q1 results: Gold sales rose 14% Y/Y but fell 19% Q/Q largely due to a 16% decrease in ounces sold following lower grades and recoveries achieved at the Loulo-Gounkoto complex. Average gold price decreased by 4% to $1,638/oz.
Thursday, May 2, 5:44 AMRandgold Resources (GOLD) declares annual dividend of $0.50/share, 25% increase from prior dividend of $0.40. Forward yield 0.63%. For shareholders of record May 10. Payable May 30. Ex-div date May 07. (PR)
Monday, April 29, 11:39 AM
Gold miners (GDX) have been smacked by plunging gold prices, but Citigroup and HSBC think they have further to fall. Citi worries about AngloGold (AU) because negative free cash flow would hit its "already stretched balance sheet," but Harmony Gold (HMY) has the balance sheet to weather similar problems; Gold Fields (GFI) is its sector favorite. HSBC cuts GFI, Agnico Eagle (AEM) and many others.
1 Comment[Commodities, Quick Ideas]
Thursday, April 18, 8:39 AM
Barrick Gold (ABX) +1.9% premarket despite news Moody’s has placed the company on review for a possible downgrade of its senior unsecured debt rating after work was halted on its $8.5B Pascua-Lama mine. Several mining/metals stocks are higher premarket after gold prices rebound: IAG +3.8%, KGC +3.6%, GOLD +3.1%, GG +2.2%, HMY +2.1%, RIO +1.9%.
1 Comment[Commodities, On the Move]
Wednesday, April 17, 3:15 PM
One of the stranger outcomes of gold's collapse is to make gold miners look more expensive, which Nomura says means more downside for the miners. "Lower levels of investment demand have the equilibrium point for the gold price at still lower levels. [If so], the equities should still have further to retrace." It's another down day for South African miners: HMY -5.6%, GOLD -4.5%, AU -4%, GFI -1.2%. (also)
6 Comments[Commodities, On the Move]