|Bid||14.28 x 100|
|Ask||14.50 x 3100|
|Day's Range||14.29 - 14.50|
|52 Week Range||11.64 - 15.55|
|PE Ratio (TTM)||18.96|
|Forward Dividend & Yield||0.08 (0.56%)|
|1y Target Est||17.92|
At extreme levels, these ratings could even signal a change in direction, so it’s important for investors to track this data. In the senior and intermediate gold miner space (GDX)(GDXJ), analysts are the most bullish on Goldcorp (GG), assigning it 65% “buy” and 5% “sell” ratings.
Gold prices rose ~3% year-to-date (or YTD) after rising ~13% in 2017. Gold prices are affected by a number of factors, including rate hike expectations, trade war fears, the US dollar, and increasing volatility.
Usually, precious-metal-mining companies follow precious metals. Precious metals have risen over the past few days, supporting mining companies.
Yesterday, Donald Trump accused Russia and China of devaluing their currencies. Trump tweeted that China and Russia are playing “the currency devaluation game as the U.S. keeps raising interest rates. Not acceptable!” Investors should note that this is a contradiction of the US Treasury, which had maintained that no major trading partners are manipulating their currencies.
Geopolitical risk has been one of the major drivers for equity markets and commodities lately. In the latest development, the US, France, and the United Kingdom launched military strikes on Syria over the weekend. Since the strikes were surgical and the pullback was prompt, risk assets haven’t seen much impact from the strikes yet. However, another round of strikes or Russian retaliation could put the markets in risk-off mode.
While the stock of this gold mining giant has certainly had its ups and downs over the years, the future looks much brighter than the recent past.
Among the senior mining companies under review in this series (GDX), Newmont Mining (NEM) is currently trading at the highest EV-to-forward EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple, of 8.3x. The company’s slower production growth added to its woes in 2017. Its follow-through on its long-term vision of improving reserves, production, and unit costs by 20% each by 2021 could go a long way in further re-rating its multiple. Barrick Gold’s (ABX) higher financial leverage is still a concern for investors, and the recent issues at its Tanzanian mines have added to its woes.
In this part of our series, we’ll look at the correlation between gold and four mining stocks: Royal Gold (RGLD), Goldcorp (GG), Sibanye Gold (SBGL), and Gold Fields (GFI). Mining stocks mostly move with gold prices, but not always. Among these four miners, Gold Fields has shown the highest correlation with gold, while Royal Gold has seen the lowest correlation with gold on a YTD (year-to-date) basis.
Click to learn about the impact that foreign exchange markets could have on your investments this year, including the implications for Teck Resources Ltd. (TSX:TECK.B)(NYSE:TECK) and several other companies.
On March 12, 2018, RBC (Royal Bank of Canada) downgraded Newmont Mining (NEM) to “underperform” from “sector perform,” and cut NEM’s stock price by $1 to $43. On January 16, 2018, Deutsche Bank (DB) downgraded Newmont from “buy” to “hold.” DB analyst Chris Terry believes that whereas the outlook for commodity prices seems bright, Newmont has a rich valuation and catalysts for the stock have already played out.
Geopolitical tensions and lingering concerns over a trade war might reduce investors' appetite for riskier assets and fuel demand for safe-haven gold.
In 1Q18, gold prices (GLD) rose by just 1%. While gold prices have repercussions on gold miners’ performance based on their leverage, most miners’ price movements in 1Q18 have been driven by company-specific factors such as the release of 2017 results, reserves, and 2018 guidance. Among senior gold miners, analysts are most bullish on Goldcorp (GG), assigning it 65% “buy” and 5% “sell” ratings.
Newmont Mining (NEM) stock rose 2.4% in 1Q18 while Goldcorp (GG) stock rose 4.5%. Newmont Mining reported an earnings beat in 4Q17. The company’s production and unit costs were in line with its guidance.
Barrick Gold (ABX) has underperformed senior and intermediate peers (GDX) (GDXJ) as well as the broader benchmark index (GDX). Barrick has guided for production of 4.5 million–5.0 million ounces of gold in 2018, which implies a ~11% fall from the midpoint of its actual production in 2017. Barrick Gold raised its all-in sustaining cost guidance for 2018 to $765–$815 per ounce.
The overall volatility in the markets has played a vital role in determining the directional move for precious metals. Gold and silver rose on Tuesday, April 10, 2018, possibly due to reports of a poison gas attack in Syria and the ongoing trade war fears between China and the United States. The equities market in Asia also lagged on Tuesday, which could have prompted some haven bids for precious metals. Often, gold is known to diverge from the broader stock markets.
Recently, the unrest in the markets has had a big effect on precious metals and the US dollar. The US dollar has a big impact on dollar-denominated precious metals and also on mining companies. In this part of the series, we’ll look at miners’ RSI (relative strength index) scores and implied volatility. The miners we’ve selected for our analysis are First Majestic Silver (AG), B2Gold (BTG), Royal Gold (RGLD), and Goldcorp (GG).
On April 9, 2018, Kinross Gold (KGC) said in a press release that “its mining operations in Russia continue to operate according to plan and remain unaffected by the new sanctions announced by the United States on April 6, 2018.” The company also mentioned that it’s closely monitoring the sanction legislation in Canada, the US, and Europe to remain in compliance. While Kinross has been caught in an unwanted situation, there isn’t much negative impact expected from the sanctions to Kinross’s operations. The stock price reaction can probably be considered an overreaction, as everything related to Russia saw sell-offs yesterday.
LONDON, UK / ACCESSWIRE / April 10, 2018 / Active-Investors free stock reports for this morning include these Toronto Exchanges' equities from the Metals & Mining industry: Barrick Gold, B2Gold, Goldcorp, ...
When considering the performance of precious metals and precious metal mining companies, it’s important to analyze their interrelationship by way of ratios. There has been a significant up-and-down movement in the precious metals since the beginning of 2018. Silver has been weak compared to gold over the past few months.
This information could help investors gauge the relative attractiveness of each stock in relation to their current prices and prospects. Newmont is currently trading at a forward EV-to-EBITDA multiple of 8.5x. Among the senior miners, including Kinross Gold (KGC) and Goldcorp (GG) are trading at forward multiples of 4.6x and 7.8x, respectively.
Trade tensions are rattling markets, but investors should not be flocking to Goldcorp Inc. (TSX:G)(NYSE:GG) and other gold equities just yet.
Gold and silver have seen positive yields over the past five trading days. Gold has increased about 0.59% and silver has risen a marginal 0.2% on a five-day trailing basis. The rise in these two precious metals could have also been due to the drop in global equities after the trade war fears deepened.