| Comp: Which Gold Miners Expect Production Growth Going Forward? | |
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A Comparative Analysis of North American Gold Miners (Continued from Prior Part) Production growth
Newmont Mining (NEM) revised its production guidance upward. This was mainly to reflect its continuing strong performance and the impact of recent acquisitions. Newmont has revised its 2015 production guidance for gold from 4.6–4.9 million ounces to 4.7–5.1 million ounces. This was mainly to reflect the recent acquisitions including the Cripple Creek & Victor Gold Mine and the building of Long Canyon Phase 1. For 2017, management suggests a production range of 5.2–5.5 million ounces of gold.
Goldcorp (GG) expects production for 2015 to be at the high end of the previously guided 3.3–3.6 million ounces. The company also noted that the gold production for 2015 is expected to be weighted toward the second half of the year. This is due to the continuing ramp-ups of the Cerro Negro and Eleonore mines and the planned mine sequence at Peñasquito.
Lowered production guidance
Reflecting the sale of the Cowal mine and 50% of Barrick Nuigini, Barrick Gold (ABX) has reduced its 2015 gold production guidance to 6.1–6.4 million ounces from 6.2–6.6 million ounces. This production is 55% weighted toward the second half of the year because that’s when more production is planned to occur at the Goldstrike, Cortez, and Pueblo Viejo mines. Barrick’s production profile is going to be stable at best going forward. This is mainly due to non-core asset sales that it already made or is in the process of making.
Kinross Gold’s (KGC) production guidance for 2015 is 2.5–2.6 million gold equivalent ounces. Management expects to reach the high-end of this range. Kinross is one of the miners whose long-term production profile is falling. The company lacks growth potential. In order to maintain its production profile, it needs to either invest organically or acquire producing mines or junior miners with production potential.
Lack of operational consistency
Yamana Gold (AUY) expects higher gold production in the second half of the year compared to the first half of the year. It’s expected to be more than 15% higher. The market is concerned about Yamana being able to fulfill its guidance for 2015 given its past issues. Although its overall production profile is improving with its mines entering higher grade areas, Yamana is struggling to deliver a consistent set of operational results. That’s the biggest market concern for the stock.
The Market Vectors Gold Miners ETF (GDX) offers exposure to senior and intermediate gold miners. The SPDR Gold Trust (GLD) tracks spot gold prices. Barrick and Goldcorp account for 12.70% of GDX’s holdings.
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PRODUCER |
CODE : YRI.TO |
ISIN : CA98462Y1007 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Yamana Gold is a gold producing company based in Canada. Yamana Gold produces gold, copper, molybdenum, silver and zinc in Argentina, in Brazil and in Chile, develops copper, gold, lead, molybdenum, silver and zinc in Argentina and in Mexico, and holds various exploration projects in Brazil. Its main assets in production are ALUMBRERA and GUALCAMAYO in Argentina, MINERA FLORIDA and EL PEÑON in Chile and FAZENDA BRASILEIRO, JACOBINA, CHAPADA MINE, SÃO VICENTE, FAZENDA NOVA and SÃO FRANCISCO in Brazil, its main assets in development are AGUA RICA in Argentina and MERCEDES in Mexico and its main exploration properties are MILLO in Peru, FERGUSSON ISLAND in Papua New Guinea, PICACHO in Mexico, CAIAMAR, PILAR, PAU A PIQUE, C1 SANTA LUZ and ERNESTO in Brazil and AMANCAYA and JERONIMO in Chile. Yamana Gold is listed in Canada, in Germany, in United Kingdom and in United States of America. Its market capitalisation is 374.3 millions as of today (US$ 299.3 millions, € 274.3 millions). Its stock quote reached its highest recent level on December 06, 1996 at 98.91, and its lowest recent point on August 22, 2003 at 1.20. Yamana Gold has 47 442 200 shares outstanding. |