Are Gold Miners a Buy After Their Earnings Reports?

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Mike Hammer | November 6, 2019 11:23am NYSE:GLD

gold bars

The first major gold miner earnings reports are in, and the picture is a bit mixed. So far we’ve seen reports from Coeur (CDE), Newmont (NEM), B2Gold (BTG), and Barrick (GOLD). Here are the bare-bones of those reports, along with upcoming important miner report dates.


Q4 Stock Earnings Report

 

 

 

 

 

 

 

 

 

(credit: Your Friendly Gold Enthusiast)

What the reports seem to say so far is that revenues are generally up, as expected. Gold prices were about 250 USD higher in 2019 Q3 than in 2018 Q3, and higher on average this quarter than last. Higher revenue was expected by many analysts, including your own Gold Enthusiast.

However, earnings so far have been, well, disappointing.  While Coeur and Barrick beat expectations, Newmont and B2Gold failed to meet their targets. Newmont cited increased costs related to the Goldcorp acquisition/merger, with an increased AISC of $987/oz. That number is quite high and investors responded, dropping the stock price over $2 at one point during the day. Newmont will need to hit their new guidance numbers of “$240M in annual run-rate improvements by the end of 2019” to even start to regain investor confidence.

B2Gold reported last night and the stock looks to open up about 3% higher in the day session.  B2Gold’s report indicated improvements in almost all areas of operation, with good results from new projects and all-in AISC $54/oz below expectations at $855/oz. B2Gold also announced its first-ever dividend, of $0.01/share.  So while the company was 1 cent short of earnings expectations the report was generally very good, and the stock price is showing investors are happy with the company.

Keep your eyes on the rest of the stocks in the list above – they are the “biggies” your friendly Gold Enthusiast uses to gauge overall investor sentiment in the gold market.

Signed,

The Gold Enthusiast

DISCLAIMER: The author owns 400 shares of BTG, but no shares in other stocks mentioned in this article. The author is long the overall gold sector via positions in NUGT, JNUG, a few junior miners, and covered calls on part of the NUGT and JNUG positions. The author may initiate new covered call positions in NUGT and/or JNUG in the next 72 hours if market conditions warrant, but has no plans to trade BTG in the next 72 hours.


The SPDR Gold Trust (GLD) was trading at $140.21 per share on Wednesday morning, up $0.36 (+0.26%). Year-to-date, GLD has gained 13.39%, versus a 15.47% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy) and is ranked #1 of 33 ETFs in the Precious Metals ETFs category.


About the Author: Mike Hammer

Mike HammerFor 30-plus years, Mike Hammer has been an ardent follower, and often-times trader, of gold and silver. With his own money, he began trading in ‘86 and has seen the market at its highest highs and lowest lows, which includes the Black Monday Crash in ‘87, the Crash of ‘08, and the Flash Crash of 2010. Throughout all of this, he’s been on the great side of winning, and sometimes, the hard side of losing. For the past eight years, he’s mentored others about the fine art of trading stocks and ETFs at the Adam Mesh Trading Group.


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