Kinross Gold (NYSE:KGC) Stock, Quote.Headers.trade-ideas

Kinross Gold

Kinross Gold is a Canada-based gold producer, producing roughly 2.2 million gold equivalent ounces in 2023. The company had about a decade of gold reserves at the end of 2023. It operates mines in the Americas and West Africa after selling its low-cost Russian operations in 2022 in response to the invasion of Ukraine. The company has historically used acquisitions to fuel expansion into new regions and production growth. In 2022, Kinross purchased the Great Bear project in Canada, which, if developed, could produce an average of more than 500,000 ounces of gold per year for at least a decade.

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These ten stocks saw significant gains last week, with Summit Therapeutics up 98.32% and BioNTech up 31.77%. Analysts also raised price targets for Applovin and Arm Holdings. 

Chewy, Broadcom And MicroStrategy Are Among Top 10 Large Cap Stock Gainers Last Week (Sep 8-Sep 14): Are The Others In Your Portfolio?

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GOLD

Newmont Corporation&#39;s (NYSE: NEM) shares have rallied 24.8% in the past three months, outperforming the Zacks Mining – Gold industry&#39;s rise of 12.4%.

Does Newmont&#39;s 25% Gain in 3 Months Justify Buying the Stock Now?

GLDM

Gold prices plunged below the $1,650 mark in 2022, only to gain momentum in 2023 amid recession disquiets. Gold prices settled above $2000 an ounce last year, and registered 28 record-highs this year. 

Buy 3 Mining Stocks for Gold&#39;s Bullish Run

Kinross Gold Corp

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Shares of precious metals stocks are trading higher as gold and silver rise after the Fed on Wednesday cut rates by 50 basis points.

Shares of gold stocks are trading higher in sympathy with overall market sentiment after the Fed policy decision to cut rates by 50 basis points.

These ten large-cap stocks were the best performers in the last week. Are they in your portfolio?
<ol>
<li>Summit Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMMT#NASDAQ">SMMT</a>) shares rocketed 98.32% after the company announced it raised&nbsp;<a href="https://www.benzinga.com//node/40833208" target="_blank" rel="noreferrer noopener">$235 million&nbsp;in net proceeds</a>.</li>
<li>BioNTech SE (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNTX#NASDAQ">BNTX</a>) stock gained 31.77% in the last week after GSK halted development of the Herpes Simplex Virus Vaccine, clearing the path for other contenders like Moderna and BioNTech.</li>
<li>Applovin Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>) stock jumped 28.38% as several analysts raised<a href="https://www.benzinga.com/quote/app/analyst-ratings" target="_blank" rel="noreferrer noopener"> the price target on the stock</a>.</li>
<li>Chewy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHWY#NYSE">CHWY</a>) stock escalated 21.37%. The stock possibly jumped amid sympathy with Petco Health and Wellness Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WOOF#NASDAQ">WOOF</a>) after the company <a href="https://www.benzinga.com//node/40822147" target="_blank" rel="noreferrer noopener">reported&nbsp;financial results</a>.</li>
<li>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) shares increased 20.81%. The stock may be up amid a <a href="https://www.benzinga.com//node/40852990" target="_blank" rel="noreferrer noopener">rebound in some chip stocks</a>.</li>
<li>Arm Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) shares gained 20.50% after Raymond James initiated coverage on the stock with an Outperform rating and announced <a href="https://www.benzinga.com/quote/arm/analyst-ratings" target="_blank" rel="noreferrer noopener">a $160 price target</a>.</li>
<li>MicroStrategy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) stock upped 18.74% after the company announced purchasing 18,300 bitcoins (CRYPTO: BTC/USD).</li>
<li>Kinross Gold Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KGC#NYSE">KGC</a>) shares increased 17.14% after the company announced it completed a Preliminary Economic <a href="https://www.benzinga.com//node/40788842" target="_blank" rel="noreferrer noopener">Assessment for the Great Bear project</a>.</li>
<li>Warner Bros. Discovery (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) stock gained 17.10% in the last week on continued strength after a recently announced multi-year partnership with Charter to integrate linear video and streaming services to enhance flexibility and value in video bundles.</li>
<li>Vertiv Holdings, LLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VRT#NYSE">VRT</a>) stock upped 17.02%.</li>
</ol>
Also Read:
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<li><a href="https://www.benzinga.com/news/large-cap/24/09/40869968/moderna-tyson-foods-and-adobe-are-among-top-10-large-cap-stock-losers-last-week-sep-8-sep-14-are-t">Moderna, Tyson Foods And Adobe Are Among Top 10 Large Cap Stock Losers Last Week (Sep 8-Sep 14): Are The Others In Your Portfolio?</a></li>
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Image via Chewy

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PAAS

Shares of precious metals stocks are trading higher as gold and silver rise amid a drop in the US dollar following recent inflation data.

Newmont Corporation&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>) shares have rallied 24.8% in the past three months, outperforming the Zacks Mining &ndash; Gold industry&#39;s rise of 12.4%. Forecast-topping earnings performance in the second quarter on the back of higher selling prices and production, along with a surge in gold prices, has contributed to the run-up in NEM&#39;s shares.
The stock is currently trading at a roughly 6% discount to its 52-week high of $53.88, reached on Aug. 30, 2024.
Technical indicators show that NEM has been unremittingly trading above the 200-day simple moving average&nbsp;since April 23, 2024. After a series of ebbs and flows, the stock broke the 50-day SMA on July 3, 2024.&nbsp; Following a golden crossover on May 13, 2024, the 50-day SMA continues to read higher than the 200-day moving average, manifesting a bullish trend, with the 200-day SMA acting as the support level.
<h2>Newmont&#39;s Shares Trade Above 50-Day SMA</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/a7/77086.jpg?v=2064703259" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
Is the time right to buy NEM&#39;s shares for potential upside? Let&#39;s take a look at the stock&#39;s fundamentals.
<h2>NEM Stock Well Poised on Key Projects &amp; Newcrest Buyout</h2>
Newmont continues to invest in growth projects in a calculated manner. The company is pursuing several projects, including Tanami Expansion 2 in Australia, the Ahafo North expansion in Ghana and Cadia Block Caves in Australia. These projects should expand production capacity and extend mine life, thereby driving revenues and profits.
The acquisition of Newcrest Mining Limited has also created an industry-leading portfolio with a multi-decade gold and copper production profile in the most favorable mining jurisdictions globally. The combination of Newmont and Newcrest is expected to deliver significant value for shareholders and generate meaningful synergies, with $500 million in total annual pre-tax benefits expected by the end of 2025. NEM also remains on track to meet its 2024 gold production target of around 6.9 million ounces with solid performances of its managed Tier 1 assets and contributions of the sites acquired from the Newcrest buyout.
<h2>Solid Financial Health Supports NEM&#39;s Capital Allocation</h2>
Newmont has a strong liquidity position and generates substantial cash flows, which allows it to fund its growth projects, meet short-term debt obligations and drive shareholder value. At the end of the second quarter of 2024, Newmont had liquidity of $6.8 billion, including cash and cash equivalents of around $2.6 billion. Its operating cash flow more than doubled year over year to around $1.4 billion. NEM also generated $594 million in free cash flow and returned roughly $539 million to its shareholders through dividends and share buybacks in the quarter.
As a leading gold producer, Newmont also stands to benefit significantly from the record-setting upswing in gold prices, which should boost its profitability and drive cash flow generation. Gold prices are hitting record highs this year, and the yellow metal has been among the best-performing assets.
Prices skyrocketed to surpass the $2,500 per ounce level for the first time on Aug. 2, 2024, as ebbing inflation raised hopes of a U.S. interest rate cut in September. Increased tensions in the Middle East and concerns over an economic slowdown also fueled safe-haven demand. Prices rallied to a record high of $2,531.70 per ounce on Aug. 20, 2024, on growing Fed rate cut expectations.
NEM offers a healthy dividend yield of 2% at the current stock price. Its payout ratio is 47% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of 15.5%. Backed by strong cash flows and sound financial health, the company&#39;s dividend is perceived to be safe and reliable.
<h2>NEM&#39;s Higher Production Costs A Concern</h2>
Newmont is being challenged by higher production costs, which will likely weigh on its margins over the near term. Its gold costs applicable to sales rose roughly 13% year over year in 2023. Newmont also saw a 19% surge in all-in-sustaining costs &mdash; the most important cost metric of miners. Both cost metrics increased year over year in the second quarter of 2024. The impacts of increased direct operating costs are leading to cost inflation. Higher materials, labor and contract services costs, despite easing somewhat lately, remain as concerns.
<h2>Newmont&#39;s Earnings Estimates Going Up</h2>
Earnings estimates for NEM have been going up over the past 60 days, reflecting analysts&#39; optimism. The Zacks Consensus Estimate for 2024 and 2025 have been revised upward over the same time frame.&nbsp; 
The Zacks Consensus Estimate for 2024 earnings is currently pegged at $2.82, reflecting an expected year-over-year growth of 75.2%. Earnings are expected to register a roughly 20.6% growth in 2025. NEM has a long-term EPS growth rate of 48.5% versus 28.1% for its industry.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/14/77088.jpg?v=2120108024" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
<h2>NEM&#39;s Valuation: A Bit Stretched But Reasonable</h2>
Newmont is currently trading at a forward 12-month earnings multiple of 15.74X, a roughly 4.9% premium to the industry average of 15X. The valuation looks reasonable, considering the company&#39;s healthy earnings trajectory.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/97/77087.jpg?v=980756600" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
<h2>Newmont Outperforms S&amp;P 500</h2>
Thanks to the rally in gold prices, NEM&#39;s shares have racked up a gain of 22.6% year to date, underperforming the industry&#39;s 24% rise but topping the S&amp;P 500&#39;s rise of 13.3%. Its gold mining peers, Barrick Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>), Agnico Eagle Mines Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aem#NYSE">AEM</a>) and Kinross Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kgc#NYSE">KGC</a>), have gained 6.6%, 41.8% and 40.8%, respectively, over the same period.
<h2>NEM&#39;s YTD Price Performance</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/1e/77085.jpg?v=839872447" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
<h2>How Should Investors Play the NEM Stock?</h2>
NEM presents an attractive investment case backed by a robust portfolio of growth projects, solid financial health and bullish technicals. Other positives include a healthy growth trajectory, rising earnings estimates and an attractive dividend yield. Rallying gold prices should also boost NEM&#39;s profitability and drive cash flow generation. Despite the upbeat growth prospects, its high production costs warrant caution. Holding onto this Zacks Rank #3 (Hold) stock will be prudent for investors who already own it.
<a href="https://www.zacks.com/stock/news/2333834/does-newmont-s-25-gain-in-3-months-justify-buying-the-stock-now?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2333834">To read this article on Zacks.com click here.</a>

Does Newmont's 25% Gain in 3 Months Justify Buying the Stock Now?

Kinross Gold shares are trading higher after the company announced it completed a Preliminary Economic Assessment for the Great Bear project.

Annual production over 500,000 ounces1 Impressive margins with low AISC2 of ~$800/oz Drilling beyond PEA inventory shows high-grade mineralization at depth
TORONTO, Sept. 10, 2024 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX:<a class="ticker" href="https://www.benzinga.com/stock/K#TSX">K</a>, NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KGC#NYSE">KGC</a>) ("Kinross" or the "Company") today is pleased to provide an update on the Great Bear project (the "Project"), located in Red Lake, Ontario, Canada.
&nbsp;
Kinross has completed a Preliminary Economic Assessment (PEA) for the Great Bear project which supports the Company's acquisition thesis of a top tier high-margin operation in a stable jurisdiction with strong infrastructure. Based on mineral resources drilled to date, the PEA outlines a high-grade combined open pit and underground mine with an initial planned mine life of approximately 12 years and production cost of sales3 of $594 per ounce. The Project is expected to produce over 500,000 ounces per year at an all-in sustaining cost (AISC)1 of approximately $800 per ounce during the first 8 years through a conventional, modest capital 10,000 tonne per day (tpd) mill.

TSX:K

Kinross Completes Great Bear Preliminary Economic Assessment; Annual Production Over 500K Ounces; Margins With Low AISC Of ~$800/oz; Drilling Beyond PEA Inventory Shows High-Grade Mineralization At Depth

Shares of precious metals stocks are trading lower as gold and silver drop amid a rise in the dollar.

CGAU

SBSW

Shares of precious metal companies are trading lower amid a drop in the price of gold. Weakness in the commodity may be due to August's ISM Manufacturing PMI data indicating an economic contraction and pending non-farm payrolls data that may determine the size of future rate cuts.

Gold prices plunged below the $1,650 mark in 2022, only to gain momentum in 2023 amid recession disquiets. Gold prices settled above $2000 an ounce last year, and registered 28 record-highs this year.&nbsp;
Following a choppy trading session over the previous two weeks, gold prices surged to an all-time high on Friday, topping $2,500 an ounce, and gaining more than 20% this year. One of the prominent gold ETFs, SPDR Gold MiniShares Trust (ARCA:GLDM) also jumped 21.5% year to date.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b8/74576.jpg?v=2811826" style="border-style:solid; border-width:1px" />
Image Source: Zacks Investment Research
Higher demand for gold from central banks, growing Federal Reserve rate-cut expectations, and geopolitical uncertainties have jacked up the price of the bullion metal, with many market participants estimating gold prices to soar well over $3000 an ounce by the end of 2025.
<h2>Central Banks Boost Demand for Gold</h2>
The demand for gold by central banks worldwide has increased significantly over the past five-year period. Almost one out of 10 ounces of gold produced by the mining industry is now being bought by global central banks, per Bullion Vault&#39;s research director, Adrian Ash.&nbsp;
The total value of gold held by central banks, mostly in China, India and Russia has climbed seven times to $2.4 trillion since 2004, added Ash. China, in particular, bought gold for 18 straight months up to May 2024, but demand for the yellow metal has also increased among smaller countries like Poland and Turkey.
<h2>Lower Interest Rate Environment to Help Gold</h2>
The recent discouraging data from the U.S. housing market reinforced expectations of a swift implementation of interest rate cuts to boost economic growth. Residential construction in the United States slowed down in July, with housing starts and building permits declining.&nbsp;
Meanwhile, with inflationary pressure subsiding, Fed officials would certainly be wary of keeping an aggressive monetary policy in place for a longer than obligatory period.
Thus, in a low-interest rate scenario, money is expected to flow out of high-yielding fixed-income investments and into gold.&nbsp;
<h2>Middle East Tensions Push Gold as Safe Haven</h2>
Unrest in the Middle East further bolstered the demand for the bullion metal since gold is generally perceived as a safe haven, unlike riskier assets such as stocks and bitcoin.
Volatility is expected to spike across global equity markets as the Gaza war rages on and nations fail to make headway, raising concerns of a wider spillover.&nbsp;
<h2>Gold Glitters, So Does Mining Stocks: GOLD, FNV, KGC</h2>
With the price of the yellow metal scaling upward, the profit margins of gold mining stocks such as Barrick Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>), Franco-Nevada Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) and Kinross Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kgc#NYSE">KGC</a>) are expected to improve. Thus, astute investors should place bets on them. These stocks, currently, possess a Zacks Rank #2 (Buy).
<h3>Barrick Gold</h3>
Barrick Gold is one of the largest gold mining companies in the world and has operations in the United States as well.&nbsp;
The Zacks Consensus Estimate for GOLD&#39;s current-year earnings has increased 14.2% over the past 60 days. The company&#39;s expected earnings growth for the current year is 44.1%.&nbsp;
<h3>Franco-Nevada</h3>
Franco-Nevada functions as a gold-fixated royalty and stream company. FNV has numerous energy assets worldwide, including the United States.&nbsp;
The Zacks Consensus Estimate for FNV&#39;s current-year earnings has increased 1.6% over the past 60 days. The company&#39;s expected earnings growth for the next quarter and year is 2.2% and 11.1%, respectively.
<h3>Kinross Gold</h3>
Kinross Gold explores gold mines and has major assets in the United States and Canada.&nbsp;
The Zacks Consensus Estimate for KGC&#39;s current-year earnings has increased 9.6% over the past 60 days. The company&#39;s expected earnings growth for the current year is 29.6%.&nbsp;
Shares of Barrick Gold, Franco-Nevada and Kinross Gold have gained 9%, 9.9%, and 51.6%, respectively, so far this year.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/a6/74577.jpg?v=688669373" style="border-style:solid; border-width:1px" />
Image Source: Zacks Investment Research
<a href="https://www.zacks.com/stock/news/2324008/buy-3-mining-stocks-for-gold-s-bullish-run-gold-fnv-kgc?cid=CS-BENZ-FT-analyst_blog|investment_ideas-2324008">To read this article on Zacks.com click here.</a>

Buy 3 Mining Stocks for Gold's Bullish Run

Scotiabank analyst Tanya Jakusconek maintains Kinross Gold (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KGC#NYSE">KGC</a>) with a Sector Outperform and raises the price target from $9.5 to $11.

Price Target

Scotiabank Maintains Sector Outperform on Kinross Gold, Raises Price Target to $11

Gold Fields Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gfi#NYSE">GFI</a>) announced that it signed a deal to acquire Osisko Mining. This move is in sync with GFI&#39;s goal to strengthen its portfolio through investments in high-quality and long-life assets.
The transaction is expected to close in the fourth quarter of 2024, subject to approvals by Osisko shareholders and others.
Once the shareholders of Osisko Mining approve the deal, Gold Fields will gain complete ownership of the Windfall Project in Qu&eacute;bec, Canada. Gold Fields and Osisko Mining&nbsp; have owned and managed the project jointly since May 2023. GFI&#39;s Windfall joint venture arrangement with Osisko Mining included a C$300-million ($219 million) deferred cash payment and a C$75-million ($55 million) exploration obligation, which will now be eliminated.
The Windfall Project, situated between Val-d&#39;Or and Chibougamau in Quebec&#39;s Abitibi region, is estimated to produce 300,000 ounces of gold per year. It is expected to have all-in-sustaining costs of $758 per ounce, making it the lowest-cost mine in Gold Fields&#39; portfolio.
Before entering the joint venture in May 2023, Osisko Mining&nbsp; invested more than C$800 million ($583 million) in the project. Since then, Gold Fields and Osisko Mining have both invested an additional C$158 million ($115 million), increasing the total investment to more than C$1 billion ($0.73 billion).
The deal is set at C$4.90 ($3.57) per share in an all-cash transaction. As of Mar 31, 2024, Gold Fields had a net debt to EBITDA ratio of 0.51X, with $424 million in cash and $1.8 billion in undrawn debt facilities.
The acquisition enables GFI to expand its presence in Qu&eacute;bec, a Tier 1 mining jurisdiction. It will allow the company to use its expertise in greenfields exploration, project development and underground mining.
Gold Fields belongs to the Mining - Gold industry. Let us take a look at how its peers performed in the second quarter of 2024.
Agnico Eagle Mines Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aem#NYSE">AEM</a>) reported adjusted earnings of $1.07 per share in the second quarter of 2024, up from 65 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 93 cents.
The company generated revenues of $2.08 billion, up nearly 21% year over year. The top line surpassed the Zacks Consensus Estimate of $1.72 billion.
Galiano Gold Inc. (AMEX:GAU) reported adjusted earnings of 3 cents per share in second-quarter 2024, beating the Zacks Consensus Estimate of break-even results. Notably, it posted adjusted earnings of 5 cents in the year-ago quarter.
Galiano Gold generated revenues of $63 million in the quarter.
Kinross Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kgc#NYSE">KGC</a>) reported adjusted earnings of 14 cents per share, in line with the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of 13 cents.
Revenues rose nearly 12% year over year to $1.22 billion in the second quarter. It topped the Zacks Consensus Estimate of $1.02 billion.
<a href="https://www.zacks.com/stock/news/2322685/gold-fields-gfi-to-boost-portfolio-with-osisko-mining-deal?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2322685">To read this article on Zacks.com click here.</a>

Penny Stocks

Small Cap

Gold Fields to Boost Portfolio With Osisko Mining Deal

Franco-Nevada Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fnv#NYSE">FNV</a>) reported adjusted earnings of 75 cents per share in second-quarter 2024, missing the Zacks Consensus Estimate of 78 cents. The bottom line decreased 21% year over year.
The company generated revenues of $260 million in the reported quarter, down 21.2% year over year. The downside was driven by lower contributions from Antapaccay, Candelaria and Energy assets, partially offset by record gold prices. In the June-end quarter, 74.2% of revenues were sourced from Precious Metal assets (60.3% gold, 10.8% silver and 3.1% platinum group metals).
The company sold 82,350 Gold Equivalent Ounces (GEOs) from precious metal assets in the reported quarter, down from the prior-year quarter&#39;s 132,033 GEOs.
In the reported quarter, adjusted EBITDA was down 19.5% year over year to $222 million. The adjusted EBITDA margin was 85.3% in the quarter under review compared with the prior-year quarter&#39;s 83.5%.
<div class="chart_embed">
<h3>Franco-Nevada Corporation Price, Consensus and EPS Surprise</h3>
<h3><img alt="Franco-Nevada Corporation Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/46/1723643011.png" style="height:281px; width:620px" title="" /></h3>
Franco-Nevada Corporation price-consensus-eps-surprise-chart | Franco-Nevada Corporation Quote
</div>
<h3>Financial Position</h3>
The company had $1.44 billion cash in hand at the end of the second quarter of 2024, up from $1.42 billion as of the end of 2023. It recorded an operating cash flow of $373 million in the first half of 2024, down from $472 million in the prior-year period.
Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay out dividends. FNV now has an available capital of $2.4 billion.
<h3>Other Updates</h3>
On Aug 13, 2024, FNV announced that it acquired a 1.8% net smelter return royalty on Newmont&#39;s Yanacocha operations in Peru from Buenaventura (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bvn#NYSE">BVN</a>). The transaction strengthens Franco-Nevada&#39;s portfolio with immediate gold equivalent ounces and long-term growth prospects.
This transaction is valued at $210 million in cash at closing, plus a $15-million contingent payment in shares.
<h3>Price Performance</h3>
Franco-Nevada&#39;s shares have lost 10.8% in the past year against the industry&#39;s growth of 34.3%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/f1/74326.jpg?v=2080571887" />
Image Source: Zacks Investment Research
<h3>Zacks Rank</h3>
FNV currently flaunts a Zacks Rank #1 (Strong Buy).
<h3>Peer Performances</h3>
Agnico Eagle Mines Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aem#NYSE">AEM</a>) reported adjusted earnings of $1.07 per share in the second quarter of 2024, up from 65 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 93 cents.
The company generated revenues of $2.08 billion, up nearly 21% year over year. The top line surpassed the Zacks Consensus Estimate of $1.72 billion.
Kinross Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kgc#NYSE">KGC</a>) reported adjusted earnings of 14 cents per share, in line with the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of 13 cents.
Revenues rose nearly 12% year over year to $1.22 billion in the second quarter. It topped the Zacks Consensus Estimate of $1.02 billion.
<a href="https://www.zacks.com/stock/news/2322161/franco-nevada-fnv-q2-earnings-miss-revenues-decline-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2322161">To read this article on Zacks.com click here.</a>

Earnings Misses

Franco-Nevada Q2 Earnings Miss, Revenues Decline Y/Y

Royal Gold, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rgld#NASDAQ">RGLD</a>) reported adjusted earnings per share of $1.25 in second-quarter 2024, beating the Zacks Consensus Estimate of $1.17. The bottom line increased 42% year over year.
Including one-time items, the company reported an EPS of $1.23 compared with the prior-year quarter&#39;s 97 cents.
<div class="chart_embed">
<h3>Royal Gold, Inc. Price, Consensus and EPS Surprise</h3>
<img alt="Royal Gold, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/85/1723472958.png" style="height:281px; width:620px" title="" />
Royal Gold, Inc. price-consensus-eps-surprise-chart | Royal Gold, Inc. Quote
RGLD generated revenues of $174 million, up 20.8% year over year. The upside resulted primarily from higher metal prices and copper sales at Mount Milligan. Increased gold and silver production at Pe&ntilde;asquito also drove the results. However, the gains were partially offset by lower gold and silver sales at Pueblo Viejo.
Stream revenues were $123 million and royalty revenues were $51 million in the June-end quarter. Stream revenues increased 15.9% year over year, whereas royalty revenues improved 34.5%.
The company&#39;s cost of sales was $24 million in the second quarter compared with the prior-year quarter&#39;s $23 million.
General and administrative expenses amounted to $10.5 million, up 16% year over year. The adjusted EBITDA was $141 million in the reported quarter, up 23.1% year over year. The adjusted EBITDA margin came in at 81% compared with the prior-year quarter&#39;s 80%.
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<h3>Financial Position</h3>
Net cash from operating activities was $113.5 million in the second quarter compared with the prior-year quarter&#39;s $108 million. Royal Gold ended the quarter with cash and cash equivalents of around $74 million compared with $104 million at the end of 2023.
<h3>Price Performance</h3>
In the past year, RGLD shares have gained 16.2% compared with the industry&#39;s growth of 24.9%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/13/74031.jpg?v=1423203206" />
Image Source: Zacks Investment Research
<h3>Zacks Rank</h3>
Royal Gold currently carries a Zacks Rank #3 (Hold).
<h3>Peer Performances</h3>
Agnico Eagle Mines Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aem#NYSE">AEM</a>) reported adjusted earnings of $1.07 per share in the second quarter of 2024, up from 65 cents in the year-ago quarter. The bottom line topped the Zacks Consensus Estimate of 93 cents.
The company generated revenues of $2.08 billion, up nearly 21% year over year. The top line surpassed the Zacks Consensus Estimate of $1.72 billion.
Galiano Gold Inc. reported adjusted earnings of 3 cents per share in second-quarter 2024, beating the Zacks Consensus Estimate of break-even results. It reported adjusted earnings of 5 cents in the year-ago quarter.
Galiano Gold generated revenues of $63 million in the quarter.
Kinross Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kgc#NYSE">KGC</a>) reported adjusted earnings of 14 cents per share, in line with the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of 13 cents.
Revenues rose nearly 12% year over year to $1.22 billion in the second quarter. It topped the Zacks Consensus Estimate of $1.02 billion.
<a href="https://www.zacks.com/stock/news/2320904/royal-gold-rgld-earnings-beat-estimates-in-q2-rise-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2320904">To read this article on Zacks.com click here.</a>

Earnings Beats

Mid Cap

Royal Gold Earnings Beat Estimates in Q2, Rise Y/Y

B2Gold Corp (AMEX:BTG) is expected to report a year-over-year improvement in earnings when it reports second-quarter 2024 results on Aug 8.
The Zacks Consensus Estimate for B2Gold&#39;s second-quarter bottom line has moved up over the past 30 days. It is pegged at 8 cents per share, suggesting 14.3% growth from earnings of 7 cents reported in the second quarter of 2023.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/e0/73402.jpg?v=331967879" style="height:280px; width:600px" />
Image Source: Zacks Investment Research
<h3>A Mixed Earnings Surprise History</h3>
B2Gold&#39;s earnings beat the Zacks Consensus Estimates in two of the trailing four quarters and missed twice. The company has a trailing four-quarter negative earnings surprise of 1.10%, on average. The trend is shown in the chart below.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/e3/73403.jpg?v=1483920899" style="height:280px; width:600px" />
Image Source: Zacks Investment Research
<h3>Lesser Chance of Q2 Earnings Beat</h3>
Our proven model does not conclusively predict an earnings beat for B2Gold this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: BTG has an Earnings ESP of -1.32%.
Zacks Rank: The company currently carries a Zacks Rank of 2.
<h3>Factors Likely to Shape Q2 Results</h3>
Gold demand was reported at 1,258 tons in the second quarter, 4% higher than the year-ago quarter. Further, this was the highest second quarter on record. Average prices were a record $2,338 an ounce in the quarter, marking 18% year-over-year growth. Contributing factors include heightened geopolitical tensions, a weaker U.S. dollar, elevated demand and increasing speculation for monetary policy easing. Higher gold prices are expected to have supported the quarterly earnings performance of B2Gold.&nbsp;
BTG&#39;s total gold production from its three operating mines was 214,339 ounces in the first quarter of 2024, down 14.5% year over year. Increased output from the Masbate Mine due to higher mill throughput and the Otjikoto Mine on higher-than-anticipated mill feed grade were offset by lower production from the Fekola mine. It was in line with the company&#39;s expectations.
We expect the second-quarter production to have been at par with the first-quarter 2024 reported level. Compared to BTG&#39;s production of 245,961 ounces in the second quarter of 2023, this suggests a year-over-year decline. However, higher gold prices are likely to have offset the lower production and boosted BTG&#39;s quarterly top-line performance.
We expect both cash operating costs and AISC costs for the second quarter to have been higher than those reported in the year-ago quarter. While this is likely to have somewhat dent earnings, higher revenues on elevated gold prices are expected to have offset the impacts.
On Jun 21, 2024, BTG announced that it had lowered its stake in Calibre Mining from 14.1% to 4%. As the sale took effect near the end of the quarter, the impacts of contributions from Calibre Mining are expected to get reflected in its second-quarter results. We expect the contributions from Calibre Mining to be slightly lower than the 11,377 ounces recorded in the first quarter of 2024.
We expect BTG to update its consolidated guidance for 2024 during its upcoming results, as it will no longer consolidate production from Calibre Mining. B2Gold&#39;s annual gold production forecast for 2024 was between 860,000 ounces and 940,000 ounces (which included 40,000-50,000 attributable ounces from Calibre Mining).
<h3>Price Performance &amp; Valuation</h3>
<h3>BTG&#39;s Price Performance Vs Industry, Sector &amp; S&amp;P500</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/9b/73404.jpg?v=294714331" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
Shares of B2Gold have gained 12.2% in the past three months against the industry&#39;s 7.3% growth. Meanwhile, the Zacks Basic Materials sector has declined 6.5% and the S&amp;P 500 has gained 3.2%.
Currently, BTG is trading at a discount, with a forward 12-month P/S of 1.67X compared with the industry&#39;s 3.11X and lower than the median of 1.87X, reflecting a good opportunity for investors.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/c8/73405.jpg?v=1403527804" style="height:290px; width:600px" />
Image Source: Zacks Investment Research
The company is also cheaper than other gold miners, Kinross Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kgc#NYSE">KGC</a>), Newmont Mining Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>) and Barrick Gold (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>), who are trading at price-to-sales ratios of 2.38X, 3.19X, and 2.29X, respectively.
Again, B2Gold&#39;s trailing 12-month return on equity of 8% is better than its industry average of 6%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/25/73406.jpg?v=1987605326" style="height:290px; width:600px" />
Image Source: Zacks Investment Research
<h3>Investment Thesis</h3>
Gold prices are expected to scale higher on upbeat demand prospects amid limited supply. B2Gold is poised well to benefit from this trend by maximizing production at its existing mines, advancing development and exploration projects, and investing in junior exploration companies. The Goose project is set for its first gold pour in the first quarter of 2025. The project ranks among the highest-grade undeveloped gold projects globally. Production at Fekola will be down this year due to the ongoing capital programs but will increase in 2025. All-in-sustaining costs will drop as these programs are completed. Despite investing in projects, BTG maintains a strong cash position and pays industry-leading dividends.
<h3>Conclusion</h3>
The current trend in gold prices positions B2Gold favorably for upbeat second-quarter results. With a solid pipeline of growth projects, financial health and cheaper valuation compared with the industry, the BTG stock presents a solid investment case for investors keen on the gold-mining space. Another compelling reason to add the stock to one&#39;s portfolio is its attractive dividend yield of 5.61% and payout ratio of 64%. Impressively, its yield has been consistently above the industry average over the past four years.
<a href="https://www.zacks.com/stock/news/2316382/should-you-buy-sell-or-hold-b2gold-btg-before-q2-earnings?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2316382">To read this article on Zacks.com click here.</a>

Should You Buy, Sell, or Hold B2Gold Before Q2 Earnings?

shares of precious metals stocks are trading lower as gold and silver fall despite overall market uncertainty.

Shares of precious metals stocks are trading lower amid a selloff in gold and silver.

Kinross Gold (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KGC#NYSE">KGC</a>) reported quarterly earnings of $0.17 per share which beat the analyst consensus estimate of $0.13 by 30.77 percent. The company reported quarterly sales of $1.22 billion which beat the analyst consensus estimate of $1.13 billion by 8.34 percent. This is a 11.63 percent increase over sales of $1.09 billion the same period last year.

Kinross Gold Q2 2024 Adj EPS $0.17 Beats $0.13 Estimate, Sales $1.22B Beat $1.13B Estimate

As <a href="https://www.benzinga.com/topic/mining">major gold miners</a> report earnings, a key question is how they plan to utilize their profits amid record-high gold prices.
"With the sharp and sustained move higher in gold prices, we think that there will be an increased focus on capital allocation in the sector &#8211; whether companies might increase dividends, buyback shares… or whether any projects in the pipeline might get more attention," Bank of America analysts said in a note.
Miners face tension between several options. On the one hand, as they remove gold from the ground, they need to keep replenishing their bankable deposits by exploring, which means spending money on drill programs. They're also looking to extend the life of mines they already have, as major new gold discoveries are increasingly rare.
Also Read: <a href="https://www.benzinga.com/government/24/07/39751111/fed-rate-cut-expectations-boost-outlook-for-gold-mining-companies-shares">Fed Rate Cut Expectations Boost Outlook For Gold, Mining Companies</a>
They also have the choice between using free cash to pay off debt or buy other mining companies, which offers a quick way to bulk up on gold holdings but is also expensive, as the acquiring company often must pay a premium for the target company.
Other options for cash flow include returning money to shareholders in the form of share buybacks or dividends, or simply keeping cash on hand for a rainy day.
This earnings season, gold miners are expected to report significantly higher cash flow.
RBC analysts are expecting senior producers in its coverage universe to report free cash flow at 2.5-year quarterly highs and a 45% increase in quarter-on-quarter earnings even though production will be flat, as all in sustaining costs, a key metric for miners, will rise just 1%.
"Investor preferences have been biased to share buy backs more recently, given the underperformance of gold equities&#8217; operating leverage vs. gold," RBC Capital Markets analysts said in a note. "However, operators have leaned to focus on project opportunities and a prioritization of debt repayment ahead of meaningful return of capital."
Do Newmont's Results Offer a Crystal Ball?
Last week, Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), the biggest gold miner in the world, reported earnings and revenue that beat expectations even though its production was down because of problems at several mines.&nbsp;
The company's free cash flow surged almost 14 times to $594 million as its average realized gold price jumped more than 19% to $2,347 per ounce, but all-in sustaining costs—an important mining metric—rose just 6% to $1,562 per ounce. 
That offers an example of why mining companies are considered a leveraged play on the price of gold. Because their costs are relatively fixed, an increase in the price of gold can boost their margins at a faster rate than the rising price of gold itself.
With Newmont's results perhaps providing a rough template for what's to come, here's a look at three other senior gold producers that are scheduled to report financial results in coming days.
Agnico Eagle (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEM#NYSE">AEM</a>) Reports Wednesday
With much of the low-hanging fruit already picked in terms of gold deposits, it is crucial for companies to increase their resource estimates and develop new mines.
Agnico is developing an underground mine at its existing Detour Lake open pit mine site, with a view to boosting the mine&#8217;s production to a million ounces a year over 14 years starting in 2030, Zacks Equity Research notes.
"The company continues to lower debt levels while focusing on capital discipline and cost control, investing in its project pipeline, and providing returns to shareholders," Zacks said.&nbsp;
With recent gold price strength, the Bank of America analysts said that they'll be looking for the company's updated views on capital allocation for debt repayment versus share buybacks or investment in exploration and growth.
"AEM repurchased $20mn of shares on its buyback in Q1&#8217;24, but we still think debt reduction is a key priority for the company as they have been messaging so," the analysts said.
The Bank of America analysts will also be looking for operational, development or exploration updates for various assets the company has, as well as inflation commentary as there have been rising labor costs because of competition for talent in certain areas where Agnico operates.
The RBC analysts are forecasting another quarter of healthy free cash flow generation for the company and are also expecting that capital allocation could be discussed.
"AEM previously outlined it would prioritize repayment of some near-term debt maturities, and it has completed modest share buybacks, while growth capital allocation could increase with various projects potentially advancing," the RBC note said.
Jefferies analysts said they are expecting higher quarter-on-quarter earnings and cash flow because of stronger gold prices in the second quarter.
Kinross Gold Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KGC#NYSE">KGC</a>) Reports Wednesday
When Kinross reports this week, the Bank of America analysts expect all eyes to be on operational performance.
They will be focused on exploration progress, permitting and any updates on the timing of a preliminary economic assessment for the company's Great Bear property. They'll also be looking to hear about how its Tasiast mine is performing after an expansion, and updates for its Manh Choh property, which is expected to deliver first production in the third quarter.
With strong gold prices, the analysts are also looking for whether management will offer views on potential mine life extensions.&nbsp;
As with Agnico, capital returns could be a hot topic.
"What will be KGC&#8217;s focus with respect to capital returns in 2024, particularly how it views the current dividend versus buy-back opportunities and also balancing that against key projects such as Great Bear amongst others," the Bank of America analysts said. "Additionally, we&#8217;ll be seeking color on whether the recent run-up in gold prices to record highs changes management&#8217;s capital returns thinking at all."
The RBC analysts are expecting a slight decline in production and higher costs quarter-on-quarter for Kinross. They're also expecting higher second quarter free cash flow generation on higher gold prices despite higher cash taxes.
The RBC analysts are also looking for word on the status of the Tasiast ramp up after the expansion and performance of a solar power plant there after it was completed in the first quarter.
"We expect higher Q2 gold prices to offset a dip in production and drive a quarterly step up in earnings and cash flow," the Jefferies analysts said.
Barrick Gold Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>) Reports on Aug. 12
Barrick Gold, the world's No. 2 producer of the precious metal after Newmont, is scheduled to report on Aug. 12.
Jefferies analysts are expecting quarter-on-quarter earnings and cash flow to be higher because of gold sales from the company's African assets and higher gold prices.
"Lumwana, North Mara, Kibali, Tongon and Bulyanhulu should be responsible for the bulk of the sequential production/sales increase, and costs should remain relatively flat," the analysts said.
Elsewhere in Africa, there are reports that authorities in Mali could be seeking to expropriate Barrick's Loulo-Gounkoto complex.
The Bank of America analyst said they'll be looking for management to offer any updates on negotiations or discussions with the government on that.
Investors and analysts are waiting on word of the ramp-up at Barrick's Pueblo Viejo in terms of increasing production and decreasing costs, the analysts said.
"With the recent gold price strength, we&#8217;ll be seeking updated views on capital allocation priorities: particularly capital return (the buy back) and investment in exploration and projects," the analysts said.
The RBC analysts are expecting low output and higher tax payments to weigh on Barrick's free cash flow during the quarter.
"Capital allocation priorities will be of note as Barrick has outlined a shift to copper growth investment at Reko Diq and the Lumwana Superpit projects, where FSs (feasibility studies) are guided to be completed by YE24," RBC said. "Barrick previously approved a share buyback which has not been utilized, despite higher gold prices ytd and weak share performance—any potential commentary on this will be of note."
Read Next:
<ul>
<li> <a href="https://www.benzinga.com/news/24/07/39732127/barrick-gold-navigates-new-mining-code-political-changes-to-secure-mali-operations" target="_blank" rel="noreferrer noopener">Barrick Gold Navigates New Mining Code, Political Changes To Secure Mali Operations</a></li>
</ul>
Benzinga Mining is the bridge between mining companies and retail investors. Reach out to <a href="mailto:licensing@benzinga.com" target="_blank" rel="noreferrer noopener">licensing@benzinga.com</a> to get started!
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Analyst Color

Major Gold Miners' Plans For Cash From Record Gold Prices Set To Be Hot Topic This Earnings Season

Agnico Eagle Mines Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aem#NYSE">AEM</a>) is slated to come up with second-quarter 2024 results after the closing bell on Jul 31. The company&#39;s performance is expected to reflect the benefits of higher gold prices and strong production.
The Zacks Consensus Estimate for second-quarter earnings has been revised 9.9% upward in the past 60 days. The consensus estimate for earnings is pegged at 89 cents per share, suggesting a 36.9% year-over-year rise. The Zacks Consensus Estimate for revenues currently stands at $1.72 billion, indicating no change on a year-over-year basis.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/14/72679.jpg?v=1879991731" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
AEM beat the Zacks Consensus Estimate for earnings in each of the last four quarters at an average of roughly 16.5% on average.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/5d/72678.jpg?v=2087028977" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
<h3>Earnings Whispers</h3>
Our proven model predicts an earnings beat for AEM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Agnico Eagle has an Earnings ESP of +4.86% and a Zacks Rank #2.
<h3>Factors Shaping Q2 Results</h3>
The benefits of higher gold prices are expected to reflect on the company&#39;s performance in the June quarter. Gold prices are hitting record highs this year, and the yellow metal has been among the best-performing assets. Gold has rallied roughly 16% this year driven by strong demand from central banks, a dovish Fed interest rate outlook, global uncertainties and a surge in safe-haven demand thanks to geopolitical tensions. Notably, prices of the yellow metal racked up a roughly 4% gain for the second quarter of 2024.
Our estimate for realized gold prices is $2,021 per ounce for the quarter, suggesting a 2.3% year-over-year increase.
Moreover, continued strong gold production is likely to have supported the company&#39;s performance. Efforts to increase mill throughput at Detour Lake and improve productivity at Macassa are likely to have aided production. AEM is also expected to have witnessed continued strong performance in its Nunavut operations. Production is also expected to have been driven by additional production from the acquisition of the remaining 50% of the Canadian Malartic complex following the buyout of the Canadian assets of Yamana Gold. Our estimate for payable gold production is pegged at 843,693 ounces for the June quarter.
While the company saw sequentially lower all-in-sustaining costs (AISC) &mdash; the most important cost metric of miners &mdash; in the first quarter due to the deferral of certain sustaining capital expenditures, the same is expected to have increased in the second quarter. AEM sees higher AISC in the subsequent quarters of 2024. Higher sustaining capital spending is expected to have contributed to a rise in AISC in the June quarter.&nbsp; &nbsp;
Our estimate for AISC for gold is pegged at $1,193 per ounce, indicating a 3.7% year-over-year increase.
<h3>Price Performance and Valuation</h3>
Thanks to the rally in gold prices and solid earnings performance, AEM&#39;s shares have performed impressively on the bourses this year. Its shares have rallied 33.8% year to date, topping the industry&#39;s 17.9% rise and the S&amp;P 500&#39;s increase of 14.5%. With respect to its major gold mining peers, Barrick Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gold#NYSE">GOLD</a>) has declined 1.7% while Newmont Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nem#NYSE">NEM</a>) and Kinross Gold Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kgc#NYSE">KGC</a>) have gained 12.9% and 42.3%, respectively, over the same period.
<h3>YTD Price Performance</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/51/72676.jpg?v=528534916" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
From a valuation standpoint, Agnico Eagle is currently trading at a forward 12-month earnings multiple of 20.29X, a roughly 35.5% premium to the peer group average of 14.97X. However, this stretched valuation should not scare investors away considering the company&#39;s healthy earnings trajectory.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/eb/72677.jpg?v=2077646707" style="height:310px; width:600px" />
Image Source: Zacks Investment Research
<h3>Investment Thesis</h3>
Agnico Eagle is well-placed for growth on the advancement of its key value drivers and pipeline projects including Odyssey, Detour Lake and Hope Bay, which are expected to provide additional growth in production and cash flows. The merger with Kirkland Lake Gold established Agnico Eagle as the industry&#39;s highest-quality senior gold producer with an extensive pipeline of development and exploration projects to drive sustainable growth.
AEM has a strong liquidity position and generates substantial cash flows, which allows it to maintain a strong exploration budget, finance a strong pipeline of growth projects, pay down debt and drive shareholder value. Rallying gold prices should also boost AEM&#39;s profitability and drive cash flow generation.
<h3>Conclusion</h3>
With a strong pipeline of growth projects, solid financial health, healthy growth trajectory, rising earnings estimates and favorable gold market conditions, AEM stock presents a compelling investment case ahead of its earnings announcement for those seeking exposure to the gold mining space. Backed by a positive earnings outlook, AEM is a prudent choice to bet on for those looking to capitalize on the anticipated strong second-quarter results.
<a href="https://www.zacks.com/stock/news/2310596/is-agnico-eagle-aem-stock-a-smart-buy-before-q2-earnings?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2310596">To read this article on Zacks.com click here.</a>

Is Agnico Eagle Stock a Smart Buy Before Q2 Earnings?

Gold acts as a dependable safe haven amid economic uncertainty and geopolitical tensions. Hence, investing in gold mining stocks, such as Agnico Eagle Mines (AEM), Barrick Gold (GOLD), and Kinross Gold (KGC), would be a prudent choice, as they could offer a buffer against market fluctuations and economic volatility. Read more… When constructing an investment portfolio, it's common for investors to focus on particular assets or strategies. However, those with a long-term perspective could prioritize diversification to mitigate potential instability. Gold is often seen as a reliable diversifier, offering protection against various risks and economic uncertainties.
To hedge against current economic and geopolitical risks, investors might consider fundamentally sound gold mining stocks Agnico Eagle Mines Limited (<a href="https://stocknews.com/stock/AEM/">AEM</a>), Barrick Gold Corporation (<a href="https://stocknews.com/stock/GOLD/">GOLD</a>), and Kinross Gold Corporation (<a href="https://stocknews.com/stock/KGC/">KGC</a>).
Gold's appeal as a safe haven asset remains strong. This year, gold has <a href="https://www.gold.org/goldhub/research/gold-mid-year-outlook-2024">surged by 12%</a> year-to-date, surpassing most major asset classes. The impressive performance is attributed to several factors: central banks continue their buying spree, Asian investors remain active, consumer demand stays robust, and geopolitical tensions persist.
Sabrin Chowdhury, head of commodities analysis at BMI, highlighted that this year, gold is poised to reach new heights. "<a href="https://www.cnbc.com/2024/08/19/gold-prices-hit-new-record-with-fresh-highs-ahead-of-fed-rate-decision.html">Gold thrives from uncertainty</a>," Chowdhury remarked, emphasizing the peak levels of uncertainty in 2024, driven by elections, ongoing conflicts, and escalating Middle Eastern tensions.
Concurrently, gold prices have recently hit new highs, with forecasts predicting the metal could reach $3,000 per ounce next year. Analysts anticipate further records reflecting gold's continued attraction amid economic uncertainty.
In parallel, the World Gold Council reported <a href="https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q2-2024/supply">a notable 4% increase</a> in total gold supply for the second quarter compared to the previous year. The rise was fueled by record-breaking mine production of 929 tons and a 4% increase in recycling rates. Data for the second quarter shows a 3% year-over-year increase in mine production, setting a new record for this period.
As demand for gold continues to climb, driven by its role as a secure investment and its critical applications in various industries, the gold mining sector is poised for significant growth. Given the industry's positive trends, let's dive deep into the fundamentals of three <a href="https://stocknews.com/category/gold-miners/">Miners – Gold</a> stocks, beginning with #3.
Stock #3: Agnico Eagle Mines Limited (<a href="https://stocknews.com/stock/AEM/">AEM</a>)
AEM, headquartered in Toronto, Canada, explores, develops, and produces precious metals. The company's portfolio includes mines such as Canadian Malartic Complex, Detour Lake, Fosterville, Goldex, Kittila, La India, LaRonde Complex, Macassa, Meadowbank Complex, Meliadine, and Pinos Altos.
On June 24, AEM <a href="https://www.agnicoeagle.com/English/investor-relations/news-and-events/news-releases/news-release-details/2024/AGNICO-EAGLE-ANNOUNCES-ADDITIONAL-INVESTMENT-IN-MAPLE-GOLD-MINES-LTD/default.aspx">announced its acquisition</a> of 33,821,842 common shares of Maple Gold Mines Ltd. at $0.085 per share, amounting to a transaction valued at approximately $2.87 million. The strategic investment is poised to enhance AEM's portfolio diversification and bolster its growth trajectory in the mining sector, facilitating broader market expansion.
During the fiscal 2024 second quarter that ended June 30, 2024, AEM's revenues from mining operations grew 20.9% year-over-year to $2.08 billion. Its <a href="https://www.investopedia.com/terms/a/adjusted-ebitda.asp">adjusted EBITDA</a> increased 32.9% from the year-ago value to $1.18 billion.
In addition, the company's adjusted net income of $535.27 million and $1.07 per share indicate a rise of 68.3% and 64.6% from the prior year's quarter, respectively. Furthermore, the company's free cash flow increased 86.8% year-over-year to $557.24 million.
Analysts expect AEM's revenue and EPS for the third quarter (ending September 2024) to grow 27.5% and 108.9% year-over-year to $2.09 billion and $0.92, respectively. Also, the company has surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.
Shares of AEM have gained 22.3% over the past three months and 64.7% over the past year to close the last trading session at $79.10.
AEM's bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
AEM has a B grade for Sentiment and Growth. It is ranked #12 out of 42 stocks in the B-rated <a href="https://stocknews.com/category/gold-miners/">Miners – Gold</a> industry.
To check other POWR Ratings of AEM for Quality, Value, Momentum, and Stability, <a href="https://stocknews.com/stock/AEM/">click here</a>.
Stock #2: Barrick Gold Corporation (<a href="https://stocknews.com/stock/GOLD/">GOLD</a>)
Headquartered in Toronto, Canada, GOLD is involved in the exploration, mine development, production, and sale of gold and copper properties. Also, the company has ownership interests in producing gold mines in Argentina, Canada, Côte d'Ivoire, the Democratic Republic of Congo, the Dominican Republic, the United States, and more.
On July 9, GOLD underscored its <a href="https://www.barrick.com/English/news/news-details/2024/barrick-continues-to-invest-in-mali/default.aspx">substantial economic contribution</a> to Mali, having invested over $10 billion in the economy over 29 years. With its mines consistently contributing between 5% and 10% of the country's annual GDP, GOLD has directly injected over $1 billion into the economy in the past year alone.
Moreover, GOLD's pioneering benefit-sharing model, initially developed for its Tanzanian operations, has been successfully replicated at the reopened Porgera mine in Papua New Guinea. This demonstrates GOLD's ability to not only sustain but also enhance its operational impact while fostering sustainable economic development in multiple regions.
On May 1, Barrick Gold (International Holdings) Ltd., a subsidiary of GOLD, unveiled its <a href="https://www.barrick.com/English/news/news-details/2024/barrick-announces-extensive-exploration-partnership-with-geophysx-jamaica/default.aspx">exploration earn-in agreement</a> with Geophysx Jamaica Ltd., a private mineral exploration company, for specific properties in Jamaica. The agreement grants GOLD access to approximately 4,000 square kilometers of consolidated land positions across the country.
The geological potential mirrors that of the Dominican Republic, home to GOLD's successful Pueblo Viejo mine, positioning GOLD to leverage its expertise and expand its footprint in promising new territories.
During the fiscal 2024 second quarter that ended June 30, 2024, GOLD's revenues increased 11.6% year-over-year to $3.16 billion. Its attributable EBITDA rose 30.5% from the year-ago value to $1.29 billion.
Moreover, the company's adjusted net earnings and adjusted net earnings per share grew 65.8% and 68.4% from the prior year's quarter to $557 million and $0.32, respectively.
Street expects GOLD's revenue for the third quarter ending September 2024 to increase 29.8% year-over-year to $3.72 billion. Meanwhile, its EPS is expected to increase 49.5% from the previous year's period to $0.36 for the quarter. Moreover, the company has topped the consensus EPS estimates in all of the trailing four quarters.
Shares of GOLD have gained 18.5% over the past nine months and 23% over the past year to close the last trading session at $19.76.
GOLD's robust fundamentals are reflected in its POWR Ratings. The stock has an overall grade of B, translating to a Buy in our proprietary rating system.
GOLD has a B grade for Sentiment and Quality. It is ranked #9 in the list of 42 stocks within the same industry.
<a href="https://stocknews.com/stock/GOLD/">Click here</a> to check out additional GOLD ratings for Growth, Value, Stability, and Momentum.
Stock #1: Kinross Gold Corporation (<a href="https://stocknews.com/stock/KGC/">KGC</a>)
Based in Toronto, Canada, KGC acquires, explores, and develops gold properties. The company operates several mines, including Fort Knox and the Manh Choh project in Alaska, as well as Round Mountain and Bald Mountain mines in Nevada and the Paracatu mine in Brazil.
On September 10, KGC <a href="https://www.kinross.com/news-and-investors/news-releases/press-release-details/2024/Kinross-completes-Great-Bear-Preliminary-Economic-Assessment/default.aspx">completed a Preliminary Economic Assessment (PEA)</a> for the Great Bear project, validating its strategy to acquire a top-tier, high-margin operation in a stable jurisdiction with robust infrastructure.
The project anticipates an annual production exceeding 500,000 ounces over the initial 8 years, achieving an all-in-sustaining cost (AISC) of approximately $800 per ounce through a conventional 10,000 tonne per day mill.
The project's combination of high-margin production and modest capital requirements positions it favorably within KGC's portfolio strategy. With strong economic fundamentals and promising growth prospects, Great Bear represents a compelling opportunity for KGC to strengthen its market position and generate sustainable value in the mining sector.
During the fiscal 2024 second quarter that ended June 30, 2024, KGC's metal sales rose 11.6% year-over-year to $1.22 billion. Its operating earnings grew 25.4% from the year-ago value to $298.30 million.
Additionally, adjusted net earnings attributable to common shareholders came in at $174.70 million, increasing 4.2% year-over-year, while adjusted EPS stood at $0.14.
The projected consensus for revenue and EPS stands at $1.22 billion and $0.16, respectively, marking a modest year-over-year increase of 10.2% in revenue and 32.9% in EPS for the fiscal third quarter ending September 2024. Moreover, the company surpassed the consensus revenue and EPS estimates in all four trailing quarters.
Shares of KGC have gained 22% over the past three months and 90.6% over the past year to close the last trading session at $9.15.
KGC's sound fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
KGC has a B grade for Quality and Sentiment. It is ranked #6 out of 42 stocks in the Miners – Gold industry.
<a href="https://stocknews.com/stock/KGC/">Click here</a> to view KGC's additional POWR Ratings for Momentum, Value, Growth, and Stability.
What To Do Next?
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<hr />
AEM shares rose $0.31 (+0.39%) in premarket trading Thursday. Year-to-date, AEM has gained 46.99%, versus a 17.38% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/aem-gold-kgc-3-gold-mining-stocks-to-hedge-against-geopolitical-uncertainty/>3 Gold Mining Stocks to Hedge Against Geopolitical Uncertainty</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Gold Mining Stocks to Hedge Against Geopolitical Uncertainty

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AAAU

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Kinross Gold (KGC) Forecast

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