Gold miners were mixed today, as gold prices today, while remaining somewhat level, weren't inspiring on the day, and most gold mining stocks were flirting just above or beneath gains or losses. Barrick (NYSE:ABX), Yamana (NYSE:AUY), Agnico (NYSE:AEM) and Kinross (NYSE:KGC) were all trading in positive territory, but some were just barely hanging on.
The usual concerns over China, EU sovereign debt, quantitative easing and geopolitical events remain part of the equation, but it seems they are on the back burner before the Thanksgiving weekend in America and the official launch of the Christmas shopping season.
Kinross was trading at $18.09, gaining $0.09, or 0.50 percent at 1:39 PM EST. Agnico was at $79.18, rising by $0.76, or 0.97 percent. Yamana was slightly up, coming in at $11.39, increasing $0.04, or 0.35 percent. Barrick was up to $50.87, increasing by $0.05, or 0.10 percent.
Showing posts with label Gold Mining Companies. Show all posts
Showing posts with label Gold Mining Companies. Show all posts
Wednesday, November 24, 2010
Thursday, October 21, 2010
Teck (NYSE:TCK), Freeport, (NYSE:FCX), Goldcorp (NYSE:GG), Barrick (NYSE:ABX) Earnings Will Explode
Gold and base metals like copper have been driving the share price of of diversified miners and gold miners up, and companies like Teck Resources Limited (NYSE:TCK), Freeport-McMoran Copper & Gold Inc. (NYSE:FCX),
Goldcorp (NYSE:GG) and Barrick Gold (NYSE:ABX) are poised to report strong third quarter earnings as a result.
While some note that the mining companies haven't been keeping up with the rise in price of metals, that isn't too relevant, as they're still moving up at a nice pace, and will continue to do so in general, with some companies obviously outperforming others.
Whether the market pays a premium or not doesn't matter, what matters is that the trajectory in general continues upward, which it is sure to for mining companies exposed to the right metals.
Mining companies will need to temper expectations by pointing to this reality, but other than that, there really isn't a downside to the market, as long as the companies continue to work on bringing costs down.
That, more than anything, will allow them to profit in almost any economic environment, as margins will continue to be solid even if revenue falls in the years ahead.
The reining in of company performances in light of the movement of commodity prices is really good for the sector, as it helps to keep share price performance closer to reality than moving in huge swings with commodity prices.
Goldcorp (NYSE:GG) and Barrick Gold (NYSE:ABX) are poised to report strong third quarter earnings as a result.
While some note that the mining companies haven't been keeping up with the rise in price of metals, that isn't too relevant, as they're still moving up at a nice pace, and will continue to do so in general, with some companies obviously outperforming others.
Whether the market pays a premium or not doesn't matter, what matters is that the trajectory in general continues upward, which it is sure to for mining companies exposed to the right metals.
Mining companies will need to temper expectations by pointing to this reality, but other than that, there really isn't a downside to the market, as long as the companies continue to work on bringing costs down.
That, more than anything, will allow them to profit in almost any economic environment, as margins will continue to be solid even if revenue falls in the years ahead.
The reining in of company performances in light of the movement of commodity prices is really good for the sector, as it helps to keep share price performance closer to reality than moving in huge swings with commodity prices.
Friday, September 24, 2010
Barrick (NYSE:ABX), Newmont (NYSE:NEM) and Goldcorp (NYSE:GG) Will Move Up as Gold Prices Continue to Soar
A number of gold miners, including giants Barrick Gold Corp. (NYSE:ABX), Newmont Mining Corp. (NYSE:NEM), and Goldcorp Inc. (NYSE:GG) should perform strongly going forward, as valuations are historically cheap, and lag the upward movement of the price of gold.
A growing number of investors are increasingly excited about the possibilities for gold mining companies, as it's inevitable they attract more and more attention, which will increase investment, but could also draw those who don't understand the market. That could lead to a bubble sometime in the future, but it's nowhere near to that place now.
Higher gold prices are creating wider margins, which of course will lead to strong earnings for the gold miners, and the current quarter should be very strong for them.
Valuation for gold mining stocks have plummeted to their lowest levels in about 18 months, creating the powerful argument for a surge in the price of the gold mining sector.
The more important long term outlook is the underlying fundamentals, including inflation, weak economy, deficits and out-of-control government spending.
That isn't going to change any time in the near future, and the gold miners and investors in them will benefit as a result.
Some think it could be up to three years before investing in gold and gold stocks go mainstream, and that's a lot of time to make money before irrational investors enter the sector, if that proves to be the case.
A growing number of investors are increasingly excited about the possibilities for gold mining companies, as it's inevitable they attract more and more attention, which will increase investment, but could also draw those who don't understand the market. That could lead to a bubble sometime in the future, but it's nowhere near to that place now.
Higher gold prices are creating wider margins, which of course will lead to strong earnings for the gold miners, and the current quarter should be very strong for them.
Valuation for gold mining stocks have plummeted to their lowest levels in about 18 months, creating the powerful argument for a surge in the price of the gold mining sector.
The more important long term outlook is the underlying fundamentals, including inflation, weak economy, deficits and out-of-control government spending.
That isn't going to change any time in the near future, and the gold miners and investors in them will benefit as a result.
Some think it could be up to three years before investing in gold and gold stocks go mainstream, and that's a lot of time to make money before irrational investors enter the sector, if that proves to be the case.
Tuesday, September 14, 2010
Barrick (NYSE:ABX), Newmont (NYSE:NEM) Drive Nevada Mining Costs Lower
Even though gold production in the state of Nevada fell for the first time in ten years, the state remains the sixth-largest gold producer in the world, still led by mining giants Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM).
Nevada, which lags behind only China, South Africa, Australia, Russia and Peru in gold production, ended 2009 producing $5.1 billion in gold and silver combined.
Barrick and Newmont also helped push down the cost of production as well for the state, falling from $525 an ounce in 2008 to $508 an ounce in 2009.
The amount of ounces produced in 2009 was 5.64 million, according to the Natural Resource Industry Institute at the University of Nevada, Reno, economist John Dobra.
Only one downside has been found in Nevada gold production, and that was the amount going into exploration, which fell from $158 million in 2008 to $110 million in 2009.
Most of that is attributed to tight credit markets rather than lack of opportunity and interest.
Dobra concluded concerning provable and probable reserves, that even if all the gold in Nevada has been discovered, they could continue mining at current levels until at least 2023.
But even with less exploration, a number of new deposits have been found, and the future continues to look bright for Nevada gold mining and the companies who have a large stake in the state.
In case it ever does slow down, gold producers in Nevada have been keeping their richest deposits on hold for times when that may be all they have to produce. It's unlikely they'll have to employ that strategy for decades to come.
Nevada, which lags behind only China, South Africa, Australia, Russia and Peru in gold production, ended 2009 producing $5.1 billion in gold and silver combined.
Barrick and Newmont also helped push down the cost of production as well for the state, falling from $525 an ounce in 2008 to $508 an ounce in 2009.
The amount of ounces produced in 2009 was 5.64 million, according to the Natural Resource Industry Institute at the University of Nevada, Reno, economist John Dobra.
Only one downside has been found in Nevada gold production, and that was the amount going into exploration, which fell from $158 million in 2008 to $110 million in 2009.
Most of that is attributed to tight credit markets rather than lack of opportunity and interest.
Dobra concluded concerning provable and probable reserves, that even if all the gold in Nevada has been discovered, they could continue mining at current levels until at least 2023.
But even with less exploration, a number of new deposits have been found, and the future continues to look bright for Nevada gold mining and the companies who have a large stake in the state.
In case it ever does slow down, gold producers in Nevada have been keeping their richest deposits on hold for times when that may be all they have to produce. It's unlikely they'll have to employ that strategy for decades to come.
Friday, September 10, 2010
Barrick (NYSE:ABX) CFO Projects 9 Million Gold Ounces Annually
In a webcast covering the UBS Best of the Americas conference, Barrick Gold (NYSE:ABX) CFO Jamie Sokalsky said the company has an annual gold production target of 9 million ounces within five years.
A two-part strategy to reach that level will be implemented. They will continue to work on expanding existing projects, while developing new projects they already have a stake in. That combination should bring the desired gold production results Barrick is looking for.
At this time they're not thinking in terms of acquiring new projects, as the high price of gold has caused the cost of gold assets to soar.
This year Barrick estimates production will be about 8 million ounces of gold on the higher end, but could come in as low as 7.6 million as well.
The gold miner has been battling to reverse their gold production slide, which last year plummeted to 7.4 million ounces.
Projects targeted for expansion or development, include Turquoise Ridge in Nevada, which they own a 75 percent stake in with Newmont Mining (NYSE:NEM). At this time the underground mine is producing between 150,000 to 200,000 ounces a year.
Scheduled to begin production in the fourth quarter of 2011 is the Pueblo Viejo project. In 2013 the Pascua Lama mine will start production. Cerro Casale, in Chile, is also included in the projected 9 million ounce production goal of Barrick.
A two-part strategy to reach that level will be implemented. They will continue to work on expanding existing projects, while developing new projects they already have a stake in. That combination should bring the desired gold production results Barrick is looking for.
At this time they're not thinking in terms of acquiring new projects, as the high price of gold has caused the cost of gold assets to soar.
This year Barrick estimates production will be about 8 million ounces of gold on the higher end, but could come in as low as 7.6 million as well.
The gold miner has been battling to reverse their gold production slide, which last year plummeted to 7.4 million ounces.
Projects targeted for expansion or development, include Turquoise Ridge in Nevada, which they own a 75 percent stake in with Newmont Mining (NYSE:NEM). At this time the underground mine is producing between 150,000 to 200,000 ounces a year.
Scheduled to begin production in the fourth quarter of 2011 is the Pueblo Viejo project. In 2013 the Pascua Lama mine will start production. Cerro Casale, in Chile, is also included in the projected 9 million ounce production goal of Barrick.
Wednesday, July 21, 2010
Ivanhoe (NYSE:IVN), Paramount (AMEX:PZG), Northgate (AMEX:NXG), Aurizon (AMEX:AZK) Finish Positive on Down Day
Ivanhoe Mines (NYSE:IVN), Northgate Minerals (AMEX:NXG), Aurizon Mines (AMEX:AZK) Paramount Gold and Silver Corp. (AMEX:PZG) all managed to finish positive on an otherwise slow day, as most gold miners and miners in general were down.
Gold prices have been under pressure because of low inflation and the silly notion the European sovereign debt crisis is under control. People will find out about that soon enough, just like the recent reminder when Ireland debt was downgraded.
Some are attempting to prop up the euro, but over the long-term, and probably short-term, it is unlikely to work. Gold had been moving up as the euro went down.
Gold miners and other metal producers have declined with gold prices, but the companies listed here were all able to buck that trend on Wednesday.
Topping the list is one of my favorites for the long term, Ivanhoe Mines, which closed at $17.02 a share, gaining $0.29, or 1.73 percent. Volume was above the 3-month average for the day.
Paramount Gold and Silver Corp., as measured by percentage, was up the most of these four, ending the day at $1.33, gaining $0.06, or 4.72 percent. Volume was just above average for them.
Northgate Minerals finished the session at an even $3.00, increasing $0.09, or 3.09 percent. Northgate traded far above the normal 3-month trading average.
Aurizon (AMEX:AZK) ended the day at $4.90, gaining $0.05, or 1.03 percent. Trading volume for them was below the 3-month average.
Gold prices have been under pressure because of low inflation and the silly notion the European sovereign debt crisis is under control. People will find out about that soon enough, just like the recent reminder when Ireland debt was downgraded.
Some are attempting to prop up the euro, but over the long-term, and probably short-term, it is unlikely to work. Gold had been moving up as the euro went down.
Gold miners and other metal producers have declined with gold prices, but the companies listed here were all able to buck that trend on Wednesday.
Topping the list is one of my favorites for the long term, Ivanhoe Mines, which closed at $17.02 a share, gaining $0.29, or 1.73 percent. Volume was above the 3-month average for the day.
Paramount Gold and Silver Corp., as measured by percentage, was up the most of these four, ending the day at $1.33, gaining $0.06, or 4.72 percent. Volume was just above average for them.
Northgate Minerals finished the session at an even $3.00, increasing $0.09, or 3.09 percent. Northgate traded far above the normal 3-month trading average.
Aurizon (AMEX:AZK) ended the day at $4.90, gaining $0.05, or 1.03 percent. Trading volume for them was below the 3-month average.
Friday, June 18, 2010
Barrick (NYSE:ABX) Closing in on 52-Week High
A consistent performer among gold miners, Barrick Gold (NYSE:ABX) (TSE:ABX) is closing in on its 52-week high, as rising gold prices are helping pull gold mining companies up with it.
The 52-week high of Barrick is $48.02, reaching that level in the early part of December. Friday the giant gold miner closed the session at $46.09, an increase of 2.8 percent.
As gold prices continue to rise, Barrick will break through the resistance and probably run into the low $50 a share and find support there.
Even in the midst of several gold corrections throughout the last several months, Barrick has been able to remain pretty steady, and hasn't swung that much in contrast to other gold miners, although in the latter part of March they did drop to around $37 a share.
The 52-week high of Barrick is $48.02, reaching that level in the early part of December. Friday the giant gold miner closed the session at $46.09, an increase of 2.8 percent.
As gold prices continue to rise, Barrick will break through the resistance and probably run into the low $50 a share and find support there.
Even in the midst of several gold corrections throughout the last several months, Barrick has been able to remain pretty steady, and hasn't swung that much in contrast to other gold miners, although in the latter part of March they did drop to around $37 a share.
Saturday, June 12, 2010
Centerra (TSE:CG) CEO Reiterates Acquisition Plans
Centerra Gold Inc. (TSE:CG) CEO Stephen Lang reiterated his plans to grow the company primarily via acquisitions rather than organically, confirming again they've set aside $2.9 billion for that purpose over the next year.
Lang said, “We would be interested in something that is approximately our size. We are looking for potential acquisitions that are in the late stages of exploration."
They are also interested in gold miners in the early-stage of production.
Centerra is looking to pay in cash, stock or a combination of the two.
2010 has been a booming year for gold companies in merger and acquisitions, as a total of 212 have been announced so far, with many more expected to come through the pipeline, as gold prices continue to surge.
Lang said, “We would be interested in something that is approximately our size. We are looking for potential acquisitions that are in the late stages of exploration."
They are also interested in gold miners in the early-stage of production.
Centerra is looking to pay in cash, stock or a combination of the two.
2010 has been a booming year for gold companies in merger and acquisitions, as a total of 212 have been announced so far, with many more expected to come through the pipeline, as gold prices continue to surge.
Tuesday, June 8, 2010
Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG), Newmont Mining (NYSE:NEM) to be Avoided?
There are a number of people who are telling people they should stay away from gold and gold mining companies, for what seems to be nothing other than being contrarian for the sake of being contrarian. So they recommend not investing in companies like Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG) and Newmont Mining (NYSE:NEM) because they're focused almost solely on producing gold, rather than a variety of metals, among other reasoning.
Others have also stated they think this is largely speculators driving the gold price increases, rather than based on fundamentals.
Forgetting gold miners for a moment, to suggest that gold prices are driven by speculators rather than fundamentals is to basically reveal incredible lack of understanding of gold and what is driving its price.
For pure gold miners, those who are controlling costs and producing gold to meet increasing demand aren't being driven by speculators, but, again, demand.
So the idea that gold miners aren't a good investment is ludicrous in our current economic environment, although obviously each one needs to be taken a close look at.
Others have also stated they think this is largely speculators driving the gold price increases, rather than based on fundamentals.
Forgetting gold miners for a moment, to suggest that gold prices are driven by speculators rather than fundamentals is to basically reveal incredible lack of understanding of gold and what is driving its price.
For pure gold miners, those who are controlling costs and producing gold to meet increasing demand aren't being driven by speculators, but, again, demand.
So the idea that gold miners aren't a good investment is ludicrous in our current economic environment, although obviously each one needs to be taken a close look at.
Monday, June 7, 2010
Red Back Mining (TSE:RBI) Drawing Acquisition Interest
The recent investment by Kinross Gold (NYSE: KGC) in Red Back Mining (OTC:RBIFF.PK) (TSE:RBI) has drawn the attention of industry watchers as to the possibility of Red Back being an acquisition or merger target.
Red Back produced around 340,000 ounces of gold in 2009, and estimates it'll produce about 485,000-525,000 ounces in 2010. Those production levels going forward is what makes the company attractive to potential suitors, which some analysts believe could be producing over 1 million ounces of gold by 2015.
The valuation of the company has skyrocketed, and few companies have an interest or ability to acquire the company at this time, and so may wait it out for awhile.
If someone is interested though, that could be a mistake, as it's possible it could continue rising in value going forward, and that would make it out of the price range of all but the very highest level gold miners like Barrick Gold (NYSE:ABX), Newmont (NYSE:NEM) or Goldcorp (NYSE:GG).
There are a few others who may be interested, but Red Back already has a higher valuation than they do at this time, so we'll have to see how it all plays out.
Kinross recently paid C$600 million for its 9.4 percent stake in Red Back, and they would probably do well to just get a bigger piece of them than to take it over altogether. But they have time, and if the share price of Red Back plummets, it would definitely be a buying opportunity for Kinross or others wanting a piece of them, or all of them for that matter.
Red Back's major operations are the Chirano Mine in Ghana and the Tasiast Mine in Mauritania.
Red Back produced around 340,000 ounces of gold in 2009, and estimates it'll produce about 485,000-525,000 ounces in 2010. Those production levels going forward is what makes the company attractive to potential suitors, which some analysts believe could be producing over 1 million ounces of gold by 2015.
The valuation of the company has skyrocketed, and few companies have an interest or ability to acquire the company at this time, and so may wait it out for awhile.
If someone is interested though, that could be a mistake, as it's possible it could continue rising in value going forward, and that would make it out of the price range of all but the very highest level gold miners like Barrick Gold (NYSE:ABX), Newmont (NYSE:NEM) or Goldcorp (NYSE:GG).
There are a few others who may be interested, but Red Back already has a higher valuation than they do at this time, so we'll have to see how it all plays out.
Kinross recently paid C$600 million for its 9.4 percent stake in Red Back, and they would probably do well to just get a bigger piece of them than to take it over altogether. But they have time, and if the share price of Red Back plummets, it would definitely be a buying opportunity for Kinross or others wanting a piece of them, or all of them for that matter.
Red Back's major operations are the Chirano Mine in Ghana and the Tasiast Mine in Mauritania.
Thursday, June 3, 2010
JPMorgan (NYSE:JPM) Adding Gold Miners to Portfolio
JPMorgan's (NYSE:JPM) Ian Henderson, who manages the $2.3 billion Global Natural Resources fund and the $2.9 billion U.K. Natural Resources, among others, has been increasing the funds' gold holdings, saying the gold market is at its best levels since the 1970s.
Gold mining companies are his primary focus, and he's added gold mining giants Barrick Gold (NYSE:ABX) (TSE:ABX) and Newmont (NYSE:NEM) to the portfolios of the above funds, and has been rewarded accordingly, with Barrick enjoying an 8.1 percent gain in Toronto so far in 2010, and Newmont rising 18 percent in New York.
Gold mining stocks are as cheap as they’ve been for a long time because for the first time in years they are making proper profits,” Henderson said.
Including other precious metals and gold, they account for 34.1 percent the holding in the funds as of the end of April.
Gold mining companies are his primary focus, and he's added gold mining giants Barrick Gold (NYSE:ABX) (TSE:ABX) and Newmont (NYSE:NEM) to the portfolios of the above funds, and has been rewarded accordingly, with Barrick enjoying an 8.1 percent gain in Toronto so far in 2010, and Newmont rising 18 percent in New York.
Gold mining stocks are as cheap as they’ve been for a long time because for the first time in years they are making proper profits,” Henderson said.
Including other precious metals and gold, they account for 34.1 percent the holding in the funds as of the end of April.
Newmont Mining (NYSE:NEM), Barrick Gold (NYSE:ABX), Cheap Gold Stocks
Gold mining giants Newmont Mining (NYSE:NEM) and Barrick Gold (NYSE:ABX) (TSE:ABX) are strong companies but cheap stocks at this time.
The overall gold mining sector is cheap at this time, as they're making real profits and are largely undervalued and lagging the price of gold.
For example, with Barrick and Newmont, they're both trading far below what they were just six months ago, with Barrick trading at just below 19 times earnings, down from 26.6 times earnings in December, while Newmont is trading at 16.4 times earnings, dropping from the 26.7 time earnings they were trading for in December as well.
The overall gold mining sector is cheap at this time, as they're making real profits and are largely undervalued and lagging the price of gold.
For example, with Barrick and Newmont, they're both trading far below what they were just six months ago, with Barrick trading at just below 19 times earnings, down from 26.6 times earnings in December, while Newmont is trading at 16.4 times earnings, dropping from the 26.7 time earnings they were trading for in December as well.
Wednesday, June 2, 2010
Eldorado Gold (NYSE:EGO), Yamana Gold (NYSE:AUY) Finish Session Up
Gold futures and stocks were up and down today, with gold futures was down $1.70, ending the day at $1223.40 an ounce. A number of gold miners experienced similar fluctuations, with Eldorado Gold (NYSE:EGO) (ELD.TO) and Yamana Gold (NYSE:AUY) (TSE:YRI) both ending in positive territory, as well as did other gold mining companies which were down earlier in the day.
Yamana Gold finished the day in New York at $10.92, a $0.23 increase, or 2.15 percent gain.
Eldorado ended the session at $17.37 a share, a $0.27 rise, or 1.58 percent increase.
Yamana Gold finished the day in New York at $10.92, a $0.23 increase, or 2.15 percent gain.
Eldorado ended the session at $17.37 a share, a $0.27 rise, or 1.58 percent increase.
Thursday, May 27, 2010
Jaguar Mining (TSE:JAG) ,Gabriel Resources (TSE:GBU), Greystar Resources (TSE:GSL) Down, on Otherwise Good Gold Day
While most gold miners continue their upward climb, that was unfortunately not true for all of them, as Jaguar Mining (TSE:JAG), Gabriel Resources (TSE:GBU) and Greystar Resources (TSE:GSL) all bucked the trend in negative way, at least on the Toronto exchange.
Jaguar was in the positive side in New York, ending the session up by $0.06, or 0.66 percent. They closed at $9.16.
There was no apparent reason for the drop in the price of these gold miner's share, as no news came out which would have caused the share prices to fall.
In Toronto, Greystar closed at $3.83, down $0.02 or 0.52 percent; Gabriel closed at $3.94, a loss of $0.19 or 4.6 percent; and Jaguar closed at $9.64, down $0.12, or 1.23 percent.
Jaguar was in the positive side in New York, ending the session up by $0.06, or 0.66 percent. They closed at $9.16.
There was no apparent reason for the drop in the price of these gold miner's share, as no news came out which would have caused the share prices to fall.
In Toronto, Greystar closed at $3.83, down $0.02 or 0.52 percent; Gabriel closed at $3.94, a loss of $0.19 or 4.6 percent; and Jaguar closed at $9.64, down $0.12, or 1.23 percent.
Monday, May 24, 2010
Eldorado Gold (NYSE:EGO), Iamgold (NYSE:IAG) Move Up
After last Friday seemed to indicate speculators and traders had pretty much left the gold market, as gold prices began to rebound then, that continued on today, with gold futures prices moving up nicely, with Eldorado Gold (NYSE:EGO) and Iamgold (NYSE:IAG) joining in the rebound.
Eldorado finished the session at 16.10, up $0.37, or 2.35 percent. Volume was about level with the 3-month average.
Iamgold (NYSE:IAG), coincidentally, was up the same $0.37 Eldorado was, a 2.3 percent gain for them. They finished today's session in New York at $16.45.
Volume for them, like a number of gold miners today, was off, down to 3,173,540, from the 3-month average of 4,289,440.
Eldorado finished the session at 16.10, up $0.37, or 2.35 percent. Volume was about level with the 3-month average.
Iamgold (NYSE:IAG), coincidentally, was up the same $0.37 Eldorado was, a 2.3 percent gain for them. They finished today's session in New York at $16.45.
Volume for them, like a number of gold miners today, was off, down to 3,173,540, from the 3-month average of 4,289,440.
Barrick Gold (TSE:ABX), Newmont Mining (NYSE:NEM) Rebound
Barrick Gold (TSE:ABX) (NYSE:ABX) and Newmont Mining (NYSE:NEM) rebounded with gold prices today, which reached toward the $1,200 an ounce mark again, before falling back some later in the day.
Barrick pushed hard during the day, but dropped in the latter part of trading as well, although though still finishing the session up a little, and increasing more in electronic trading. Barrick finished at $41.12, up a dime or 0.24 percent.
Volume plunged from its three-month average in New York, with 6,721,617 share trading hands, far below the average 11,310,300. In Toronto Barrick finished down by a little over 1 percent, ending the trading day at $43.48.
Newmont had been up most of the day, but also dropped near the end of the session to break even, closing at $52.34. After hours they started up again, hitting $53.40 a share at 5:30 p.m. EST.
Barrick pushed hard during the day, but dropped in the latter part of trading as well, although though still finishing the session up a little, and increasing more in electronic trading. Barrick finished at $41.12, up a dime or 0.24 percent.
Volume plunged from its three-month average in New York, with 6,721,617 share trading hands, far below the average 11,310,300. In Toronto Barrick finished down by a little over 1 percent, ending the trading day at $43.48.
Newmont had been up most of the day, but also dropped near the end of the session to break even, closing at $52.34. After hours they started up again, hitting $53.40 a share at 5:30 p.m. EST.
Monday, May 17, 2010
Newmont Mining (NYSE:NEM), Barrick Gold (NYSE:ABX) Continue to Look Strong
Giant gold mining companies Newmont Mining (NYSE:NEM) and Barrick Gold (NYSE:ABX) (TSE:ABX) look like they'll continue to perform strongly going forward, as Newmont not only has three solid quarters in a row under their belt, but analysts think they're going to almost jump in earnings in the current quarter by just under 100 percent, looking for profits to grow by 93 percent.
Last quarter Barrick also had great earnings, increasing by 115 percent during that time, and that should continue on in this quarter as well.
Of course with any company generating earnings like that, it's hard to repeat it at that pace over any extended period of time, but there are sure to be some solid quarters into the future, as there are few barriers to keep gold from increasing in price going forward.
The only thing that could happen would be a correction whose timing could temporarily drive down earnings. That may be precipitated by those investing in gold that are jumping on the bandwagon without knowing what is driving the gold market.
In the long term, once gold investors enter the market after a prolonged period of upward price movement, they could drive prices up to speculative levels, which could cause a bubble.
The underlying fundamentals for gold are so strong though, that even that will be tempered when it happens, which is probably years away, although gold corrections will be part of the experience off and on while gold prices continue to move up overall.
Last quarter Barrick also had great earnings, increasing by 115 percent during that time, and that should continue on in this quarter as well.
Of course with any company generating earnings like that, it's hard to repeat it at that pace over any extended period of time, but there are sure to be some solid quarters into the future, as there are few barriers to keep gold from increasing in price going forward.
The only thing that could happen would be a correction whose timing could temporarily drive down earnings. That may be precipitated by those investing in gold that are jumping on the bandwagon without knowing what is driving the gold market.
In the long term, once gold investors enter the market after a prolonged period of upward price movement, they could drive prices up to speculative levels, which could cause a bubble.
The underlying fundamentals for gold are so strong though, that even that will be tempered when it happens, which is probably years away, although gold corrections will be part of the experience off and on while gold prices continue to move up overall.
Thursday, May 13, 2010
Gold Wheaton Gold (TSX:GLW) Up, Kinross Gold (TSX:K), Barrick Gold (TSX:ABX) Down
Gold Wheaton Gold (TSE:GLW) ended the session slightly up today, while Kinross Gold (TSE:K) (NYSE:KGC) and Barrick Gold (TSE:ABX) (NYSE:ABX)
Gold Wheaton finished the day up 0.03 or 1.12% on the Toronto Stock Exchange, while Kinross Gold was down 41 cents and Barrick Gold down 79 cents at the end of the day.
Gold futures for June delivery dropped to $1,229.20 on the Comex in New York today, after breaking records for the last couple of sessions.
Some profit taking was inevitable, but gold miners will rebound with the price of gold futures, as safe haven and inflation fears permeate the market.
Gold Wheaton finished the day up 0.03 or 1.12% on the Toronto Stock Exchange, while Kinross Gold was down 41 cents and Barrick Gold down 79 cents at the end of the day.
Gold futures for June delivery dropped to $1,229.20 on the Comex in New York today, after breaking records for the last couple of sessions.
Some profit taking was inevitable, but gold miners will rebound with the price of gold futures, as safe haven and inflation fears permeate the market.
Wednesday, May 12, 2010
Aurizon (TSE:ARZ) Reserve Grades Lower
Aurizon (TSE:ARZ) earnings in the first quarter dropped, citing lower reserve grades in the particular section of its Casa Berardi mine, located in Quebec.
Profits in the quarter were down to C$2.2 million, or 1 Canadian cent a share, less than half what it was the same quarter a year ago when they generated earnings of C$5.0 million, or 3 Canadian cents a share.
Taking away an unrealized gain on derivatives, Aurizon losses came in at C$141,000, which was about level a share, while last year profits were C$5.8 million, or 4 Canadian cents a share.
Revenue in the quarter also plunged by 7.1 percent to C$39.8 million.
Guidance for gold production remained on target, with expectations of 145,000 to 155,000 projected for 2010. Hopefully the grades will improve or they're going to struggle for the rest of the year, not matter how much gold they extract from the mine.
For 2011 through 2013, guidance was for the company to produce 160,000 to 170,000 annualy at a cash cost of $425 an ounce.
Profits in the quarter were down to C$2.2 million, or 1 Canadian cent a share, less than half what it was the same quarter a year ago when they generated earnings of C$5.0 million, or 3 Canadian cents a share.
Taking away an unrealized gain on derivatives, Aurizon losses came in at C$141,000, which was about level a share, while last year profits were C$5.8 million, or 4 Canadian cents a share.
Revenue in the quarter also plunged by 7.1 percent to C$39.8 million.
Guidance for gold production remained on target, with expectations of 145,000 to 155,000 projected for 2010. Hopefully the grades will improve or they're going to struggle for the rest of the year, not matter how much gold they extract from the mine.
For 2011 through 2013, guidance was for the company to produce 160,000 to 170,000 annualy at a cash cost of $425 an ounce.
Goldcorp (TSE:G), Barrick Gold (NYSE:ABX) Level and Down Even with Gold Price Records
Goldcorp (TSE:G) (NYSE: GG) and Barrick Gold (NYSE: ABX) (TSE:ABX), among the largest gold mining companies in the world, didn't partake in the surge in gold mining stocks, as they responded to record gold futures prices over the last couple of days.
This isn't a surprise of completely unexpected, as the junior miners and mid-level gold mining companies like Eldorado Gold (TSE:ELD), Apollo Gold (AMEX:AGT) and NovaGold Resources (AMEX:NG) are being looked to as companies that will move up strongly in response to rising gold prices.
Depending on which stock exchange you view the companies at, Goldcorp and Barrick are either down, or barely above level, and that seems to imply investors think they're valued at what they should be, and the gold prices are already figured into the share prices of the giant mining companies.
But the junior and mid-level gold mining companies should shine going forward, as they've been sitting around not doing much, and now that the limits seem to be taken off the price of gold futures, gold mining stocks are starting to draw interest of investors, and they're finally starting to move up to more accurately reflect the markets they're in.
This isn't a surprise of completely unexpected, as the junior miners and mid-level gold mining companies like Eldorado Gold (TSE:ELD), Apollo Gold (AMEX:AGT) and NovaGold Resources (AMEX:NG) are being looked to as companies that will move up strongly in response to rising gold prices.
Depending on which stock exchange you view the companies at, Goldcorp and Barrick are either down, or barely above level, and that seems to imply investors think they're valued at what they should be, and the gold prices are already figured into the share prices of the giant mining companies.
But the junior and mid-level gold mining companies should shine going forward, as they've been sitting around not doing much, and now that the limits seem to be taken off the price of gold futures, gold mining stocks are starting to draw interest of investors, and they're finally starting to move up to more accurately reflect the markets they're in.
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