Oct. 6, 2014, 2:45 PM
- Gold prices bounce off 15-month lows to reclaim $1,200/oz. as the dollar rally pauses, helping strengthen shares of precious metals miners: AU +4.4%, GFI +3%, IAG +1.9%, BTG +3%, GG +2.2%, NGD +1.5%, KGC +1.6%, AGI +1.6%, RGLD +1%, SLW +2.1%.
- Sterne Agee analysts Michael Dudas and Satyadeep Jain foresee gold and silver prices trending higher, with gold averaging $1,400/oz. in 2015 and $1,450 in 2016 and silver averaging $19 next year and $21 in 2016, as “global demand remains firm, liquidity remains ample and the dollar appears overbought.”
- With investor sentiment still skeptical, Sterne thinks any supportive macro news flow could provide fuel for a rally; the firm rate Newmont Mining (NEM +1.5%), Agnico-Eagle Mines (AEM +2.4%), Coeur Mining (CDE +1.3%) and Gold Resource (GORO +0.2%) as Buys, with Barrick Gold (ABX +0.5%), Hecla Mining (HL +4.3%) and Pan American Silver (PAAS +1.5%) rated Neutral.
- ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, DGL, DBS, DGZ, OUNZ, DGLD, AGOL, DBP, TBAR, USV, UBG, JJP, GLDE, BAR, GYEN, GEUR, RGRP, BARS, GGBP, BLNG
Aug. 14, 2014, 3:45 PM
- Silver Wheaton's (SLW -5.7%) Q2 results were disappointing, but analysts seem to think the silver streamer will enjoy better days ahead.
- Below consensus earnings was simply due to the timing of sales, BMO analyst Andrew Kaip says, noting SLW had 6.3M oz. of attributable silver production and just 5.2M oz. of sales; production has outpaced sales by ~5.7M oz. over the past six quarters.
- TD's Dan Earle foresees a bright future for SLW, expecting the company will generate a “staggering” $692M of free cash flow in 2016 with HudBay's new Constancia mine, which should reach production late this year, a key contributor; SLW owns a silver stream on the mine.
- Both analysts have price targets on the stock of $32/share, ~20% above the current level.
Aug. 14, 2014, 2:16 PM
- Silver Wheaton (SLW -5.3%) and Pan American Silver (PAAS -5.3%) are both sharply lower as low silver prices combined with still-high costs combine to weigh on Q2 results.
- SLW said its silver equiv. realized price fell from $23.05/oz. a year ago to $19.83 in this year's Q2; gold sales accounted for ~30% of sales, and SLW’s realized gold price of $1,295/oz. was included in a 14% drop in the silver equiv. price.
- In Q2 results for PAAS, the average realized price for silver was $19.58/oz., down from $22.68 in the year-ago quarter; gold, which accounts for ~25% of sales, also suffered, fetching $1,289/oz.vs. $1,423 a year ago.
- ETFs: AGQ, USLV, ZSL, DSLV, DBS, USV
Aug. 13, 2014, 5:49 PM
- Silver Wheaton (NYSE:SLW) -1.7% AH after Q2 earnings miss expectations, and revenues tumble 11% Y/Y and finish shy of analyst consensus.
- Q2 attributable silver equiv. production totaled 8.4M oz. (6.3M oz. of silver, 31.4K oz. of gold), down 4% from the year-ago quarter.
- Payable silver equiv. oz. produced but not yet delivered to SLW by its partners fell slightly to ~6.3M oz. at June 30.
- Average realized sale price per silver equiv. oz. sold in Q2 was $19.83 ($19.81/oz. of silver, $1,295/oz.of gold), down 14% Y/Y.
- Operating cash flows of $102.5M fell 18% Y/Y; operating margin was $15.11/ silver equiv. oz. from $18.28 in Q2 2013.
- Q2 average cash costs were $4.15 and $393 per oz. of silver and gold, respectively; on a silver equivalent basis, average cash costs fell to $4.72 vs. $4.77 in the year-ago quarter.
Aug. 13, 2014, 5:42 PM
Aug. 13, 2014, 5:10 PM
Aug. 12, 2014, 5:35 PM
Jul. 14, 2014, 11:29 AM
- Precious metals miners are broadly lower as gold futures head for their biggest daily drop of 2014, plunging $29.30, or 2.2%, to $1,308.10/oz.
- Physical demand has remained short of expectations, Commerzbank's Eugen Weinberg says, and India's decision to maintain a 10% import duty on gold and silver likely will dampen future gold demand expectations from the country.
- Barclays, which expects gold to drop to $1,200/oz. by Q3, also expresses caution, saying recent gains across the metals complex look toppy.
- ABX -1.2%, NEM -1.7%, GG -2.4%, KGC -1.8%, AEM -1.4%, AUY -1.4%, EGO -3%, NGD -2.8%, FNV -2.4%, AGI -2.6%, AU -2.2%, IAG -1.9%, GFI -3.4%, BTG -2.1%, NG -0.7%, SLW -2.1%.
- ETFs: GLD, SLV, GDX, NUGT, AGQ, IAU, DUST, SIL, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLDX, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, SLVP, DGL, DBS, GLTR, DGZ, RING, AGOL, DGLD, OUNZ, DBP, GGGG, WITE, PSAU, TBAR, USV, UBG, JJP, GLDE, GYEN, GLDL, RGRP, GLDS, GEUR, GGBP, BLNG
Jun. 19, 2014, 3:35 PM
- Beaten-up gold miner stocks are strong across the board as precious metal prices move sharply higher and take out key technical resistance levels; Comex gold jumped $41.40 (+3.3%) to settle at $1,314.10/oz., the highest level since April 14, and silver added $0.87 (+4.4%) to end at $20.65/oz..
- Among today's winners: EGO +8.5%, AGI +8.5%, BTG +8.1%, SBGL +8.1%, SLW +5.5%, AUY +5.3%, AUY +5.2%, KGC +5.2%, GG +4.8%, NG +4.4%, AU +4.1%, ANV +4%, GFI +3.8%, ABX +3.2%, NEM +2.8%, IAG +1.7%.
Jun. 16, 2014, 5:19 PM
- Alexco Resources (AXU) says it reached agreement with Silver Wheaton (SLW) to amend the 2008 silver purchase agreement so that the fixed $3.90/oz. silver streaming production payment is replaced with a variable production payment based on the spot price of silver.
- The agreement applies to 25% of AXU's payable silver produced at its Keno Hill silver mining operations in Yukon, Canada.
May 27, 2014, 3:33 PM
- June gold fell to its lowest level in 15 weeks, settling 2% lower $1,265.50/oz., as "everywhere the investor looks, he sees nothing but a negative for gold today." Silver slipped 1.8% to end at $19.07/oz.
- Gold's drop despite increased violence in eastern Ukraine "is a telling sign that more weakness may be on the horizon," says Forex.com's Matt Weller; a shift in tone by Russia, which indicated its willingness to work with the new Ukrainian government and made strides toward a natural gas deal between the two countries, removed another support from the gold market.
- Also a factor is a round of stronger U.S. economic data showing a surprise increase in durable goods orders, improved housing data and rising consumer confidence, which is providing a lift to stocks; the expiration of June gold options also is adding to market volatility.
- Precious metals miners are among the day's weakest stock performers: ABX -3.4%, GG -3.8%, NEM -3.1%, SLW -3.4%, KGC -3.8%, AUY -4.1%, AU -6.5%.
- ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, ZSL, SGOL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, DGL, DBS, DGZ, DGLD, AGOL, OUNZ, TBAR, USV, UBG, GLDE, GYEN, GEUR, GLDS, GLDL, GGBP
May 8, 2014, 5:12 PM
May 8, 2014, 5:12 PM| 2 Comments
Mar. 25, 2014, 11:39 AM
- Silver prices below $20/oz. should worry some investors, as several miners may need to adjust their plans if spot prices weaken further, Dundee's Chris Lichtenheldt says as he breaks down how specific companies will be impacted.
- The analyst says Coeur Mining (CDE) is an ideal sell or short candidate, Endeavour Silver (EXK) is essentially breakeven at $19 silver, and Silver Standard (SSRI) has been a top performer YTD but is a high-cost operator.
- As for Dundee's potential winners: Tahoe Resources (TAHO) is a low-cost operator with a best-in-class asset, Silver Wheaton's (SLW) balance sheet is solid above $15 silver, and Pan American Silver's (PAAS) strong balance sheet should provide a cushion as higher-cost operations have improved.
- ETFs: SIL, SLVP, SILJ
Mar. 24, 2014, 3:48 PM
- Gold prices tumbled nearly 2% to settle at five-week lows as investors continued to take profits against the metal's YTD surge with an eye toward an improving U.S. economy and the possibility of an interest rate hike as soon as early next year.
- So Credit Suisse's move today to lift stock price targets for Barrick Gold (ABX -4.1%) and Newmont Mining (NEM -2.1%) was ill-timed as gold miners (GDX -4%) fall sharply across the board.
- On ABX, the firm raises its target to $21 to reflect the company's relatively conservative $1,100/oz. gold price assumption for reserves, exploration upside potential within its asset base (demonstrated by its 15M oz. Goldrush discovery) and strong base of low cost assets.
- On NEM, the firm ups its target to $26 on higher forecast operating cash flow and a higher NAV target multiple, but a resolution of the ore export ban in Indonesia is necessary to become more constructive.
- Also: AU -4.3%, NG -4.9%, GG -3.6%, KGC -4%, NGD -4%, IAG -3.8%, GFI -1.9%, HMY -3.2%, SLW -6.5%, ANV -6.7%, BTG -4.9%.
Mar. 21, 2014, 1:49 PM
- A check of Silver Wheaton (SLW -1%) finds the stock beginning to lose altitude after mixed results and a cut in the dividend last night.
- Q4 silver equivalent production of 9.7M ounces was up 17% from a year ago. Sales volume of 8M ounces fell 13%. Revenue of $287.2M fell 42%. Averaged realized selling price of $21 per ounce fell 33%. Net earnings of $93.9M or $0.26 per share compares to $177.7M or $0.50 per share a year ago.
- Average cash costs of $4.14 per ounce of silver and $394 for gold - virtually unchanged from a year ago.
- Company expects 2014 silver equivalent production of 36M ounces, roughly unchanged from 2013. By 2018, SLW sees 48M ounces of production, up 35% from last year.
- Both Cowen and BMO boost their price targets in wake of the earnings report.
- Press release
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