|Bid||17.84 x 0|
|Ask||17.90 x 0|
|Day's Range||17.68 - 17.95|
|52 Week Range||15.00 - 19.32|
|PE Ratio (TTM)||27.89|
|Forward Dividend & Yield||0.11 (0.59%)|
|1y Target Est||N/A|
Investors are typically interested in gold mining companies’ (GDX)(GDXJ) ability to generate FCF (free cash flow) because FCF helps them invest in future growth—apart from the aim of returning cash to shareholders.
In this part, we’ll discuss what analysts expect for these gold miners’ (RING) earnings. In line with lower revenues, Barrick Gold’s (ABX) EBITDA are also expected to fall. Barrick is expecting its all-in sustaining costs for 2018 to be $765–$815 per ounce, compared to $710–$770 per ounce in 2017.
Analyst estimates for gold miners’ (GDX) revenues can give us a good idea about their outlook on gold prices (GLD) as well as companies’ production growth. In this part of our series, we’ll assess analysts’ revenue expectations for gold companies in the second quarter and beyond. Analysts expect Barrick Gold (ABX) to generate revenues of ~$1.84 billion in the second quarter.
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 IAMGOLD (IAG), with 75.0% of analysts assigning it a “buy.” Plus, 25.0% rated it as a “hold,” and there were no “sell” ratings. Goldcorp (GG) comes next with 70.0% “buy” ratings and 25.0% “hold” ratings.
Gold prices have declined ~5.0% YTD (year-to-date) after rising ~13.0% in 2017. Gold is hitting lows despite factors that favor its safe-haven status. Despite the escalation of trade war fears and political tensions in the European Union, gold prices have been trending lower.
The CFTC (Commodity Futures Trading Commission) reports the position of major players in the futures market through its COT (Commitment of Traders) report. According to the COT report for the week ended June 26, 2018, money managers were barely net long on gold with just over 4,000 net speculative long contracts. According to Commerzbank, “Short positions, in particular, were built up, which means speculative financial investors are currently betting heavily on falling prices.” For the week ended June 3, money managers kept their positions almost unchanged, which implies the lowest levels of net long positioning since late 2015 when gold prices dipped below $1,050 per ounce.
Diesel is out and electric is in at Goldcorp's Borden project in Canada. The all-electric strategy could enable huge cost savings if applied across the portfolio.
Gold prices have gone through a rough patch recently with prices closing near their seven-month lows. Gold is hitting lows despite many factors that are favoring its safe-haven status. Despite the escalation of trade war fears and political tensions in the European Union, gold prices have been trending lower. While these factors have helped gold, the US dollar is also attracting bids because of these factors, which has capped gold’s gains.
Gold Stayed Weak in the First Half of 2018—Will Its Year Improve? On June 12, Morgan Stanley upgraded Newmont Mining (NEM) from an “equal-weight” to an “overweight” and raised its target price to $40 from $37. The brokerage cited stronger execution, a steadier production profile, a stronger project pipeline, a better reserve life, and lower leverage as the main reasons for its preference of NEM over Barrick Gold (ABX).
The Fed has hinted that there could be two more interest rate hikes this year, for a total of four hikes in 2018. Investors are closely watching non-farm payroll data, which indicates the overall economy’s potential. Inflation meeting its targeted 2% is also among the Fed’s considerations.
Gold Stayed Weak in the First Half of 2018—Will Its Year Improve? Are sentiments improving for Newmont Mining and Goldcorp? Among senior gold miners, analysts are the most bullish on Goldcorp (GG), assigning it 70% “buy” and 5% “sell” ratings.
Gold Stayed Weak in the First Half of 2018—Will Its Year Improve? Kinross Gold (KGC) stock has been the worst performer among those we’re discussing in this series. While the company’s operational performance has been going according to plan, there are variables companies can’t control, and it’s one of those uncontrollable variables to which Kinross stock has fallen prey.
Gold Standard Ventures said Goldcorp has increased its stake in the Vancouver-based mineral exploration company to 12.73% from 9.86%, bringing its ownership to about 32.4 million shares.
Newmont Mining (NEM) and Goldcorp (GG) are the only two senior gold mining stocks that have had positive returns YTD (year-to-date). In the first six months of the year, NEM returned 0.5%, and Goldcorp outperformed its peers significantly with a rise of 7.4%. Newmont Mining reported an earnings beat in the first quarter.
The revival in precious metal prices on Friday, June 29, caused a rebound in miners. The fall in metals on Monday once again caused mining stocks to plummet.
As Bitcoin continues to plunge, investors can find the silver lining in investments such as Goldcorp Inc. (TSX:G)(NYSE:GG).
As we see fresh six-month lows for gold, some technical indicators are pointing toward a possible revival in its price. The RSI (relative strength index) for gold was 25. An RSI level below 30 indicates that the asset may be oversold and could see a possible revival in price.
Minera Frisco , a mining company controlled by Mexican tycoon Carlos Slim, said on Thursday it had struck an exploration agreement in Mexico with a local unit of Canada's Goldcorp Inc in which the two ...
Guyana Goldfields Inc. (TSX:GUY) is one of healthiest high-growth gold stocks that growth investors need to know about right now.
As we’ve discussed in this series, gold tends to be the strongest influence on the movement of precious metals miners. In this article, we’ll focus on the correlations of selected miners with gold. Gold is the most influential among the precious metals, and silver, platinum, and palladium are known to follow its movement.
Precious metals have seen their prices fall over the last few months. Among the four miners in this discussion, Goldcorp (GG) and Newmont Mining (NEM) have dropped 4.2% and 6.2%, respectively, over the last month. Royal Gold (RGLD) and Sibanye Gold (SBGL) have risen 3.6% and 14.6%, respectively, during the same timeframe.
Brexit is coming, and a new Canadian trade landscape with it. Here’s why gold stocks like Osisko Gold Royalties Ltd. (TSX:OR)(NYSE:OR) should remain stable.
Goldcorp (GG) has operations across Canada, the United States, Mexico, Central America, and South America. You can learn more about Goldcorp in Market Realist’s An Investors’ Guide to Goldcorp. Currently, 20 Wall Street analysts are tracking GG stock, of which 70% recommend “buys,” 25% recommend “holds,” and 5% recommend “sells.” Its current target price of $18.0 implies a potential upside of 26% based on its current market price.