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The Precious Metals Rout: Impact on Miners and ETFs (Continued from Prior Part) Barrick Gold (ABX) is on a selling spree
Precious metals have significantly slid down in the last few months. Gold and silver futures on COMEX are down by 6.70% and 6.51%, respectively, on a 30-day trailing basis. The party most affected by the precious metals rout is gold mining companies.
The Toronto-based gold miner Barrick Gold (ABX) lost close to 2.34% on a five-day trailing basis and a whopping 62.50% on a one-year trailing basis on Friday. Barrick Gold is one of the world’s largest gold producers. It represents 6.74% of the Market Vectors Gold Miners ETF’s (GDX) portfolio. Recently, Barrick Gold sold off its Australian Cowal gold mine for $550 million to the Australia-based Evolution Mining. Along with Cowal, Barrick has also put up its Porgera mine in Papua New Guinea for sale. These mine sales are in line with the company’s goal of reducing its debt burden by close to $3 billion by year end. Barrick sold three more mines in the past year besides Cowal. Currently, the company owns only one mine in Australia, the Kalgoorlie Super Pit, with a 50% holding. To reduce further bills, Barrick is also closing its Perth office.
The chart below shows the performance of Barrick Gold (ABX) over the last three years. You can see a clear downward swing owing to declining metal prices as well as the growing debt burden.
Other miners also take a beating
The Market Vectors Gold Miners ETF (GDX) slid by 0.45% on a five-day trailing basis on Friday. The returns went positive, up to 2.37%. The Sprott Gold Miners ETF (SGDM) has lost 23.64% on a 30-day trailing basis. Its last trading day performance was good, as the ETF gained 2.66%
Gold mining companies like Goldcorp (GG) and Barrick Gold (ABX) are also cutting down their dividends by close to 60%. The South Africa–based gold miner Gold Fields (GFI) had lost 4.62% on a five-day trailing basis. Last trading day, GFI’s returns were positive. They rose 2.48%. GG, ABX, and GFI together represent ~18% of the Market Vectors Gold Miners ETF (GDX).
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Gold Fields ltd
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PRODUCTEUR |
CODE : GFI |
ISIN : US38059T1060 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Gold Fields est une société de production minière d'or basée en Afrique Du Sud. Gold Fields est productrice d'or, de cuivre au Ghana, au Perou, en Australie et en Afrique Du Sud, en développement de projets d'or au Mali, et détient divers projets d'exploration au Perou. Ses principaux projets en production sont ST IVES MINE et AGNEW en Australie, BEATRIX MINE, DRIEFONTEIN, KLOOF MINE, SOUTH DEEP, KLOOF et BEATRIX en Afrique Du Sud, DAMANG, TARKWA et DAMANG PROJECT au Ghana et CERRO CORONA au Perou, son principal projet en développement est KOMANA au Mali et ses principaux projets en exploration sont LOBO aux Philippines et CHUCAPACA et CANAHUIRE au Perou. Gold Fields est cotée aux Etats-Unis D'Amerique, en Afrique Du Sud et en France. Sa capitalisation boursière aujourd'hui est 11,7 milliards US$ (10,5 milliards €). La valeur de son action a atteint son plus bas niveau récent le 10 novembre 2000 à 1,69 US$, et son plus haut niveau récent le 13 septembre 2024 à 14,21 US$. Gold Fields possède 821 530 048 actions en circulation. |