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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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PRODUCER |
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CODE : GFI |
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ISIN : US38059T1060 |
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ProfileMarket
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Asset profileContact Cpy |
Gold Fields is a gold producing company based in South africa. Gold Fields produces gold, copper in Australia, in Ghana, in Peru and in South Africa, develops gold in Mali, and holds various exploration projects in Peru. Its main assets in production are ST IVES MINE and AGNEW in Australia, BEATRIX MINE, DRIEFONTEIN, KLOOF MINE, SOUTH DEEP, KLOOF and BEATRIX in South Africa, DAMANG, TARKWA and DAMANG PROJECT in Ghana and CERRO CORONA in Peru, its main asset in development is KOMANA in Mali and its main exploration properties are LOBO in Philippines and CHUCAPACA and CANAHUIRE in Peru. Gold Fields is listed in France, in South Africa and in United States of America. Its market capitalisation is 728.2 millions as of today (€ 663.6 millions). Its stock quote reached its lowest recent point on November 10, 2000 at 1.69, and its highest recent level on October 07, 2024 at 15.35. Gold Fields has 47 442 200 shares outstanding. |