Gold’s Price at 1-Month Low = More Pain for Mining Stocks
$GLD, $ABX, $NEM, $AU, $GG, $NCMGY, $GFI, $AEM, $GOLD
After its worst week since November, Gold was drifting lower again Thursday with the metal coming under pressure from a stronger US and an interest rate hike likely ahead in the US, just the 3rd time since June 2006.
Thursday, Gold and Silver closing in New York.
- April Gold futures were down $5.00 (-0.4%) to $1204.40 oz
- May Silver futures were down $0.13 (-0.8%) to $17.17 oz
The sell-off in Gold stocks have exceeded that of the metal by some margin with the shares of a number of Gold miners falling back into negative territory for Y 2017 and many sporting 20%+ declines over the past month.
In afternoon dealings Barrick Gold Corp (NYSE:ABX) trading lower. The Toronto-based miner last year produced 5.5-M oz of Gold, a 9% dip compared to Y 2015, but aggressive cost cutting saw all-in sustaining costs for the company fall 12% to an industry-leading $730 oz in Y 2016.
Newmont Mining Corp (NYSE:NEM) is down on the month. Denver-based Newmont grew output 6% last year to 4.9-M oz on the back of additional production from its Merian and Long Canyon mines, but per ounce costs at the company portfolio of mines are inching down more slowly and averaged more than $900 in Y 2016.
AngloGold Ashanti’s (NYSE:AU) ADRs lost 20% in value over the past month. Johannesburg-based Anglogold reported an 8% decrease in annual production to 3.6-M oz in Y 2016. Production was impacted by safety-related stoppages at its South African mines and lower grades at the giant Kibali operation in the Congo its owns together with Randgold Resources.
Goldcorp (NYSE:GG), the Vancouver-based company is down 11.4%+ on the month. Goldcorp recorded a steep drop in production last year of 17% or nearly 600,000 oz.
Newcrest Mining (OTCMKTS:NCMGY) also trading down on the week, the Australian miner a market cap of $12.3-B. Newcrest produced close to 2.5-M oz last year and boasts the lowest cost mining operation in the world. Cadia Valley in Western Australia can dig out the yellow metal for less than $300 oz all-in.
South African miner Gold Fields (NYSE:GFI) has not been marked down severely over the past month. The Johannesburg-based firm which last year kept annual production steady at 2.1-M oz is also showing a slight gainer in Y 2017 for a market worth of $2.6-B.
Agnico-Eagle (NYSE:AEM) produced 1.7-M oz in Y 2016 and is on an Oz-Oz basis one of the most expensive Gold mining stocks with a market value of more than $9-B on the NYSE is down 19%+ over the past month.
Randgold Resources ADRs trading on the Nasdaq (NASDAQ:GOLD) contained losses at 2.4% on the day and is the best performing large gold miner year to date with a 16% gain in value and a market cap of $8.3 billion. Randgold’s been enticing investors with the promise of a massive hike in dividend payouts.
Yamana Gold (TSE:YRI), Iamgold Corp (NYSE:IAG) and Eldorado Gold Corp (TSX:ELD) hardest hit hardest and the Tier 2 Canadian miners have been treated harshly by investors over the past month. All 3 counters have suffered 20%+ falls in value over the frame despite the relatively steady Gold price since early February.
|NYSEArca:GLD||114.47||9 March 2017||-0.59||114.78||115.03||114.4||6,408,700|
|HeffX-LTN Analysis for GLD:||Overall||Short||Intermediate||Long|
|Neutral (-0.13)||Bearish (-0.27)||Neutral (-0.24)||Neutral (0.11)|