Newmont Corp is primarily a gold producer with operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. It is also engaged in the production of copper, silver, lead and zinc. The company's operations are organized in five geographic regions: North America, South America, Australia, Africa and Nevada.
The gold price stayed strong at the beginning of 2018, but has since taken a tumble, dropping below $1,200 per ounce midway through August.
Even so, many analysts predict that the metal will rise in the fall, with stocks increasing in tandem.
So where should investors place their bets? Analysts at Raymond James recently released a list of their current favorites in the gold space, noting that balance sheets have improved for many companies.
“We expect a key theme emerging from year-end reporting and 2018 guidance will be increased exploration budgets as companies increasingly focus on development pipelines and areas of production growth,” the analysts state in the report.
Read on to learn which six gold stocks the analysts are looking at and why they may have potential. Raymond James notes that “investors should consider this report as only a single factor in making their investment decision,” and recommends further consultation with an investment advisor.
1. Agnico Eagle Mines (TSX:AEM,NYSE:AEM)
Current price: C$47.62; 2018 YTD: -20.49 percent
Agnico Eagle Mines has been in production since 1957, and currently has mines in Canada, Finland and Mexico. It also explores in all of those countries, plus the US and Sweden.
The company has bumped up its 2018 gold production forecast twice so far. Once in February, when it raised it from 1.5 million ounces to 1.53 million ounces, and again in July, when it increased it to 1.58 million ounces. The gold stock expects to reach first production from its Meliadine gold project in Nunavut in Q2 2019, which it says is one quarter ahead of schedule.
The company’s board has also approved an expansion under which it will add a 1,044-meter shaft at its Kittila mine in Finland, as well as raise mill throughput by 25 percent, to 2 million tonnes per year. Agnico says the expansion will be phased in over four years and is expected to increase gold production by 50,000 to 70,000 ounces per year at a reduced operating cost beginning in 2021.
2. Newmont Mining (NYSE:NEM)
Current price: US$32.25; 2018 YTD: -14.05 percent
Second on Raymond James’ gold stocks list is Newmont Mining. The company has operations in Africa, North America, South America and Australia, and it made Fortune’s 2018 World’s Most Admired Companies list. In December 2017, the company improved its gold production guidance for 2018 to between 4.9 and 5.4 million ounces. As of its Q2 report in July 2018, Newmont had produced 1.16 million ounces of gold for the year, which is in line with that guidance.
Gary J. Goldberg, the gold stock’s president and CEO, said, “[w]e continued to add lower cost production by completing our Twin Underground and Northwest Exodus projects safely, on budget and ahead of schedule. And we invested in future value-creation by forging a partnership with Teck to advance prefeasibility studies on Galore Creek in British Colombia, one of the world’s largest undeveloped copper-gold deposits, and with Sumitomo to develop Yanacocha Sulfides in Peru.”
3. B2Gold (TSX:BTO,NYSEAMERICAN:BTG)
Current price: C$3.12; 2018 YTD: -17.46 percent
B2Gold is a gold stock based in Vancouver. It has five gold mines operating and several exploration and development projects around the world, including in the Philippines, Nicaragua, Namibia, Colombia, Finland, Mali and Burkina Faso.
Its flagship asset is its Fekola mine in Mali — it produced 111,450 ounces of gold in 2017 and is forecast to bring in between 420,000 and 430,000 ounces of gold this year. B2Gold’s total gold production guidance for the year lies between 910,000 and 950,000 ounces of gold.
As of Q2 of this year, B2Gold was well on its way to meeting guidance, with output of 240,093 ounces of gold that quarter. Fekola contributed a large piece of that pie, as it brought in nearly half of that alone, with production of 112,644 ounces in the period.
4. Endeavour Mining (TSX:EDV)
Current price: C$19.90; 2018 YTD: -20.78 percent
Next on the list is Endeavour Mining, which operates five mines in Burkina Faso, Mali and Côte d’Ivoire. Collectively, these mines are expected to produce between 670,000 and 720,000 ounces of gold in 2018, and Endeavour aims to uncover between 10 and 15 million ounces of gold by 2021 via exploration.
The company’s Q2 results show it is on track to meet its guidance. Production for the quarter reached 147,000 ounces, and it came to 299,000 ounces for the first half of the year. Endeavour’s Ity CIL project began production in September 2017, and is expected to produce 204,000 ounces annually over the first decade of its 14-year mine life. The gold stock’s Q2 report includes an update on the project, noting that first gold pour is expected to happen in mid-2019.
5. Pure Gold Mining (TSX:PGM)
Current price: C$0.57; 2018 YTD: +1.79 percent
Pure Gold Mining holds the Madsen gold project in Red Lake, Ontario. The project has a mineral resource totaling 1,744,000 ounces at 8.7 g/t gold. The company reported a $13-million private placement with Sprott Capital Partners this past April. At the same time, Pure Gold secured an investment from AngloGold Ashanti (JSE:ANG) of $7.9 million in exchange for 12.8 million shares. AngloGold now has 14.9-percent ownership of the company.
Pure Gold released its Q1 report in August, saying that test mining has begun at Madsen. Test mining is scheduled to finish in September, and will provide geotechnical data for a definitive feasibility study that is currently in progress.
6. Integra Resources (TSXV:ITR)
Current price: C$0.87; 2018 YTD: -20.91 percent
Last on Raymond James’ gold stocks list is Integra Resources. Integra is an exploration and development company operating in the US. The company owns the DeLamar and Florida Mountain gold projects in Idaho, previously operated by Kinross Gold (TSK:K,NYSE:KGC). Integra launched a $10-million drill program at DeLamar this year, and the gold stock is aiming to release an updated resource estimate by Q4 2018; a preliminary economic assessment is expected in 2019.
Which gold stocks are you watching this year? With share prices down over summer, is this a buying opportunity? Let us know your favorite gold stocks in the comments below.
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Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.
Solitario Zinc Corp. (TSX:SLR, NYSE:XPL) (“Solitario”) is pleased to announce that it has sold, through its wholly owned subsidiary Minera Solitario Perú S.A.C., its non-producing Yanacocha royalty to Minera Los Tapados S.A., a wholly owned subsidiary of Newmont (“Newmont”) (NYSE: NEM), for approximately US$501,500 in cash. The Yanacocha royalty covered 43 concessions totaling 36,052 hectares (the “Yanacocha Royalty”). Newmont owns the underlying mineral concessions and intends to terminate the Yanacocha Royalty. None of the concessions covered by the Yanacocha Royalty have any reported reserves or resources.
Solitario received a Term Sheet from a third-party to purchase the Yanacocha Royalty as part of discussions concerning the potential sale of Solitario’s entire portfolio of royalty properties. Newmont had a 30-day Right of First Refusal (“ROFR”) to match any third-party offer to purchase the Yanacocha Royalty from Solitario. Newmont exercised its ROFR rights and the transaction closed on April 26, 2018.
Solitario’s Other Royalty Properties
Solitario also owns three other royalty properties in the Americas (see table below). These include the poly-metallic Pedra Branca platinum-palladium-nickel-chrome project in Brazil. The Pedra Branca project hosts a significant open-pitable resource that is in the feasibility stage of development by Jangada Mines.
|Solitario Royalty Properties|
|Property Name /
Chris Herald, President and CEO of Solitario, commented, “Our royalty properties are non-core assets of Solitario. Selling the Yanacocha royalty to Newmont allowed us to monetize this royalty and use the proceeds to advance other ongoing initiatives. These initiatives include the acquisition of quality base and precious metal properties, with an emphasis on zinc.”
Solitario is an emerging zinc exploration and development company traded on the NYSE American (“XPL”) and on the Toronto Stock Exchange (“SLR”). Solitario holds 50% joint venture interest in the high-grade, open-pitable Lik zinc deposit in Alaska and a 39% joint venture interest (Nexa Resources holds the remaining 61% interest) on the high-grade Florida Canyon zinc project in Peru. Solitario also holds a 7.6% equity interest in Vendetta Mining. Solitario’s Management and Directors hold approximately 9.2% (excluding options) of the Company’s 58.4 million shares outstanding. Solitario’s cash balance and marketable securities stand at approximately US$14.3 million. Additional information about Solitario is available online at www.solitariozinc.com.
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933 and the U.S. Securities Exchange Act of 1934, and as defined in the United States Private Securities Litigation Reform Act of 1995 (and the equivalent under Canadian securities laws), that are intended to be covered by the safe harbor created by such sections. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and address activities, events or developments that Solitario expects or anticipates will or may occur in the future, and are based on current expectations and assumptions. Forward-looking statements involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements include, without limitation, statements regarding the Company’s expectation of the projected timing and outcome of engineering studies; expectations regarding the receipt of all necessary permits and approvals to implement a mining plan, if any, at Lik or Florida Canyon; the potential for confirming, upgrading and expanding zinc, lead and silver mineralized material; future operating and capital cost estimates may indicate that the stated resources may not be economic; estimates of zinc, lead and silver grades of resources provided are predicted and actual mining grade could be substantially lower; estimates of recovery rates for could be lower than estimated for establishing the cutoff grade; and other statements that are not historical facts could vary significantly from assumptions made in the PEA. Although Solitario management believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among others, risks relating to risks that Solitario’s and its joint venture partners’ exploration and property advancement efforts will not be successful; risks relating to fluctuations in the price of zinc, lead and silver; the inherently hazardous nature of mining-related activities; uncertainties concerning reserve and resource estimates; availability of outside contractors, and other activities; uncertainties relating to obtaining approvals and permits from governmental regulatory authorities; the possibility that environmental laws and regulations will change over time and become even more restrictive; and availability and timing of capital for financing the Company’s exploration and development activities, including uncertainty of being able to raise capital on favorable terms or at all; as well as those factors discussed in Solitario’s filings with the U.S. Securities and Exchange Commission (the “SEC”) including Solitario’s latest Annual Report on Form 10-K and its other SEC filings (and Canadian filings) including, without limitation, its latest Quarterly Report on Form 10-Q. The Company does not intend to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.