|Bid||39.740 x 300|
|Ask||39.750 x 300|
|Day's range||39.190 - 39.970|
|52-week range||37.350 - 51.860|
|PE ratio (TTM)||37.89|
|Forward dividend & yield||0.44 (1.12%)|
|1y target est||N/A|
Agnico Eagle (AEM) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Is Gold Set to Remain Higher for Longer as Volatility Soars? The new Federal Reserve chairman, Jerome Powell, made his first public appearance in that capacity on February 27, 2018. Testifying before the House Financial Services Committee, Powell acknowledged that the US economy has firmed up recently.
Barrick Gold (ABX), along with other gold miners, has been punished for a long time by investors due to high debt, especially while precious metal prices (GLD)(SLV) were in for a downslide. Investors might recall that Barrick, Newmont Mining (NEM), and Kinross Gold (KGC) are among the miners that invested heavily at the peak of the cycle. Most of those assets were subsequently written off due to poor economics, infrastructure issues, and weaker precious metal prices.
Historically, IAMGOLD (IAG) has traded at a lower valuation than its peers. However, after its significant turnaround in 2017 and year-to-date, its discount versus peers has fallen. Its discount for the last five years versus its intermediate peers (GDXJ), on average, was ~40%, which has shrunk to 15% currently. IAG stock is now trading at a forward multiple of 5.3x.
During its investor day, Barrick Gold (ABX) outlined its organic investments that could drive long-term value for the company. Barrick is expecting four feasibility level projects to contribute more than 1 million ounces of annual production. In the short term, the company plans to strengthen its production profile through disciplined investment in its brownfield projects and mine exploration drilling.
Production growth is an important variable for miners. Barrick Gold (ABX) produced ~1.34 million ounces of gold in 4Q17, which reflects a decline of 11.8% YoY (year-over-year). The total production in 2017 came in at 5.32 million ounces.
During its investor day on February 22, Barrick Gold’s (ABX) chairman, John Thornton, mentioned that its goal is to grow the free cash flow per share rather than growing “ounces for their own sake.” He added that the company has examined and passed on a range of external opportunities in 2017. Barrick acquired Equinox Mineral for $7.3 billion, with a major asset of a copper mine in Zambia. Thornton stated during the investor day call, “When times are good, companies overpay for mediocre assets and invest in projects with low returns.
Barrick Gold’s (ABX) stock had fallen 15.8% year-to-date (or YTD) as of February 23—an underperformance, given the -5.5% return from the VanEck Vectors Gold Miners ETF (GDX). The SPDR Gold Shares ETF (GLD), which provides access to the physical gold prices, has gained 2.0%. ABX’s close peers Newmont Mining (NEM), Goldcorp (GG), and Agnico Eagle Mines (AEM) have returned 3.1%, 0.5%, and -12.2%.
Another critical factor that has been affecting the price movement of precious metals is overall market volatility, which is depicted by the CBOE Volatility Index (or VIX). Also, the worries about the interest rate hike have been critical in adding to the volatility in the market.
Newmont Mining’s (NEM) all-in sustaining costs (or AISC) came in at $968 per ounce in 4Q17, which is 5.4% higher year-over-year (or YoY) and 2.7% sequentially. The increase in unit costs is mainly due to higher mill maintenance costs at Boddington and higher sustaining capital expenditure. Its full-year AISC came in at $924 per ounce, which is 1% higher than 2016.
Agnico Eagle Mines Ltd. is dusting off cobalt assets in Ontario for potential sale as a global search for the rechargeable-battery ingredient expands amid surging demand CEO Sean Boyd tells Bloomberg's ...
Feb.26 -- Agnico Eagle Mines Ltd. is dusting off cobalt assets in Ontario for potential sale as a global search for the rechargeable-battery ingredient expands amid surging demand CEO Sean Boyd tells Bloomberg's Danielle Bochove at the BMO Capital Markets 27th Global Metals & Mining Conference from Hollywood, Florida.