Sat, Sep. 19, 8:25 AM
- Metal and mining stocks have been hit hard in recent months, but analysts at FBR Capital argue that there are still attractive names to own in the sector.
- Companies with exposure to the zinc and met coal markets look appealing, FBR says, as supply reductions could act as a positive catalyst for prices; Teck Resources (NYSE:TCK) is the firm's top pick there, with Horsehead Holding (NASDAQ:ZINC) the favorite small-cap idea.
- The firm sees "no structural turnaround for domestic thermal coal," but thinks the rate of decline will begin to slow next year, justifying Outperform ratings on Alliance Resource Partners (NASDAQ:ARLP) and Westmoreland Coal (NASDAQ:WLB); Cloud Peak Energy (NYSE:CLD) and Joy Global (NYSE:JOY) are rated Underperform.
- FBR is fairly upbeat on steel names, initiating SunCoke Energy (NYSE:SXC) and SunCoke Partners (NYSE:SXCP) at Outperform, as SunCoke’s long-lived coke assets are able to generate strong margins “in almost any U.S. steel environment"; Cliffs Natural Resources (NYSE:CLF) is rated Market Perform.
- The copper market will remain in surplus through 2017, FBR says, but it rates Southern Copper (NYSE:SCCO) at Outperform; Freeport McMoRan (NYSE:FCX) is rated Market Perform.
- Among precious metals miners, the firm prefers Pan American Silver (NASDAQ:PAAS) and Royal Gold (NASDAQ:RGLD), the latter "a diversified company with a solid balance sheet and attractive acquisition opportunities."
Wed, Sep. 16, 5:45 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) is in talks with Franco-Nevada (NYSE:FNV), Silver Wheaton (NYSE:SLW), Royal Gold (NASDAQ:RGLD) and two other companies to sell portions of the future production of three South American copper mines, according to a Reuters report.
- The streaming deals are said to involve Glencore's Antamina and Antapaccay copper mines in Peru and its Collahausi mine in Chile, and the talks could expand to include other mines; the copper mines also produce precious metals such as silver and some gold as by-products.
Thu, Aug. 20, 4:32 PM
Wed, Aug. 5, 11:35 PM
Wed, Aug. 5, 5:16 PM
- Royal Gold (NASDAQ:RGLD) agrees to purchase a percentage of the gold and silver production attributable to Barrick Gold's (NYSE:ABX) 60% interest in its Pueblo Viejo mine in the Dominican Republic for $610M.
- Pueblo Viejo's 2014 gold production totaled ~1.11M oz., silver production was 3.85M oz., and all-in sustaining costs were $588/oz.; total mine proven and probable reserves were 15.5M oz. of gold and 97.2M oz. of silver, while measured and indicated resources were 10.5M oz. of gold and 61.2M oz. of silver.
- RGLD +1.3%, ABX +2.2% AH.
Mon, Jul. 20, 3:41 PM
- New Gold (NGD -11.1%) entered into a $175M streaming agreement with Royal Gold (RGLD -9.5%), which will provide the deposit to be used for ongoing development of NGD's Rainy River project, in exchange for a percentage of the future annual gold and silver production from the project.
- NGD will deliver 6.5% of Rainy River's gold production up to a total of 230K oz. of gold, and 3.25% of the project's gold production thereafter.
- Roth Capital reiterates its Buy rating and $3.25 price target on NGD, as the deal demonstrates NGD's commitment to moving forward with Rainy River despite a six month delay announced earlier this year.
- The news is falling on deaf ears today, with gold equities drowning in a sea of red as the yellow metal drops below $1,100/oz.
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
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
Thu, Jul. 9, 5:39 PM
- Royal Gold (NASDAQ:RGLD) says it has entered into a $525M gold offtake agreement with Teck Resources (NYSE:TCK) Chilean subsidiary Compañía Minera Teck Carmen de Andacollo.
- The deal includes certain exploitation concessions by CMCA on the Carmen de Andacollo copper-gold mine, any mining concessions acquired within a 1.5 km area of interest, and other mining concessions.
- RGLD agrees to a US$525M advance payment to CMCA, which will sell and deliver monthly an amount of gold equal to all payable gold produced from the mine until 900K oz. have been delivered, and 50% thereafter.
Mon, Jun. 29, 8:15 PM
- Cameron (NYSE:CAM) stands out as Barclays' Top Pick in the energy sector, as the firm highlights "resilient results expected from improved execution and manufacturing flexibility, while also being well positioned for the eventual recoveries in each of its end markets."
- Valero Energy (NYSE:VLO) remains Barclays' favorite name among refiners, due mostly to the new management’s emphasis on growing value for shareholders; Suncor (NYSE:SU) and Vermilion Energy (NYSE:VET) also rank among the firm's favorites.
- Among regulated utilities, NextEra Energy (NYSE:NEE) is one of the highest quality names, with 5%-7% targeted earnings growth generated from continued investment in its Florida Power & Light regulated entity.
- In precious metals, Royal Gold (NASDAQ:RGLD) is Top Pick; Barclays prefers gold royalty companies over gold producers as they have wider margins and limited exposure to rising operating and capital costs while their diversified portfolios limit political risk, and RGLD is the best of the group.
Thu, Jun. 4, 4:11 PM
Wed, Apr. 29, 6:23 PM
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
Fri, Apr. 17, 2:57 PM
- Thompson Creek Metals (TC -5.2%) reports Q1 concentrate production for its Mount Milligan mine in British Columbia totaled 30.3K dry tons, with 15.4M lbs. of payable copper and 46.1K oz. of payable gold which were respective 8% and 18% Y/Y increases.
- TC says recent improvements at Mount Milligan should allow it to increase secondary crushing for the rest of 2015, and achieve throughput of ~60K tons/day by year's end.
- TC also says Q1 molybdenum sales from the Thompson Creek Mine and 75%-owned Endako Mine totaled 4.3M lbs.
- Royal Gold (NASDAQ:RGLD) says its subsidiary received 26.2K oz. of gold in Q1 from Mount Milligan as part of its purchase and sale agreement with TC.
RGLD vs. ETF Alternatives
Other News & PR