gold prices
BMO Low Volatility U.S. Equity ETF, $25.34, symbol ZLU on Toronto (Units outstanding: 11.5 million; Market cap: $291.4 million; www.etfs.bmo.com), aims to invest in a portfolio of low-beta U.S. stocks. The fund has a 0.30% MER and yields 2.0%. The ETF selects the 100 lowest-beta stocks from a universe of the largest, most liquid U.S. securities. The underlying portfolio is rebalanced in June and December. In this respect, it differs widely from conventional ETFs which are designed to minimize trading and trading expense. BMO Low Volatility U.S. Equity ETF’s top holdings are Newmont Mining, McDonald’s, Autozone, Verizon Communications, Quest Diagnostics, Dollar General, Family Dollar, AT&T, Laboratory Corporation of America and AmerisourceBergen Corp....
NEW GOLD $3.86 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold.com; Shares outstanding: 508.9 million; Market cap: $2.1 billion; No dividends paid) has four mines: the Mesquite project in the U.S., Cerro San Pedro in Mexico, the Peak mine in Australia and the New Afton mine in B.C. New Gold also owns 30% of the El Morro copper/ gold project in Chile, 100% of the Blackwater property in B.C. and 100% of Ontario’s Rainy River project. In the three months ended March 31, 2015, the company’s cash flow per share fell 27.8%, to $0.13 from $0.18 a year earlier. Gold production rose 4.0%, to 94,977 ounces from 91,317, but an 11.2% fall in copper output from New Afton, along with lower realized gold prices, cut New Gold’s cash flow....
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YAMANA GOLD $4.67 (Toronto symbol YRI; TSINetwork Rating: Speculative)(416-815-0220; www.yamana.com; Shares outstanding: 941.5 million; Market cap: $4.4 billion; Dividend yield: 1.6%) owns eight operating gold mines in Mexico, Brazil, Chile and Argentina. It also holds a 12.5% stake in the Alumbrera copper/gold mine in Argentina and has a number of other properties in advanced stages of development.
In the three months ended March 31, 2015, the company’s gold production rose 33.5%, to 304,874 ounces from 228,370 a year earlier. That was mainly due to its 50% stake in the Canadian Malartic gold mine in Quebec, which it purchased last year; this mine contributed 67,894 ounces to Yamana’s latest quarterly output.
The higher production helped offset a 6.4% decline in gold prices. As a result, Yamana’s cash flow rose 2.2%, to $96.0 million from $93.9 million. However, cash flow per share fell 8.3%, to $0.11 from $0.12, on more shares outstanding.
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In the three months ended March 31, 2015, the company’s gold production rose 33.5%, to 304,874 ounces from 228,370 a year earlier. That was mainly due to its 50% stake in the Canadian Malartic gold mine in Quebec, which it purchased last year; this mine contributed 67,894 ounces to Yamana’s latest quarterly output.
The higher production helped offset a 6.4% decline in gold prices. As a result, Yamana’s cash flow rose 2.2%, to $96.0 million from $93.9 million. However, cash flow per share fell 8.3%, to $0.11 from $0.12, on more shares outstanding.
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NEW GOLD $3.86 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold.com; Shares outstanding: 508.9 million; Market cap: $2.1 billion; No dividends paid) has four mines: the Mesquite project in the U.S., Cerro San Pedro in Mexico, the Peak mine in Australia and the New Afton mine in B.C.
New Gold also owns 30% of the El Morro copper/ gold project in Chile, 100% of the Blackwater property in B.C. and 100% of Ontario’s Rainy River project.
In the three months ended March 31, 2015, the company’s cash flow per share fell 27.8%, to $0.13 from $0.18 a year earlier. Gold production rose 4.0%, to 94,977 ounces from 91,317, but an 11.2% fall in copper output from New Afton, along with lower realized gold prices, cut New Gold’s cash flow.
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New Gold also owns 30% of the El Morro copper/ gold project in Chile, 100% of the Blackwater property in B.C. and 100% of Ontario’s Rainy River project.
In the three months ended March 31, 2015, the company’s cash flow per share fell 27.8%, to $0.13 from $0.18 a year earlier. Gold production rose 4.0%, to 94,977 ounces from 91,317, but an 11.2% fall in copper output from New Afton, along with lower realized gold prices, cut New Gold’s cash flow.
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TEMPUR SEALY INTERNATIONAL INC., $61.35, symbol TPX on New York, makes and distributes mattresses and neck pillows made of its Tempur material, which conforms to the body to provide support and alleviate pressure points. The company is benefiting from its $1.3-billion purchase of rival Sealy in March 2013. The move let it diversify into traditional spring-coil beds. Excluding integration costs, Tempur Sealy’s earnings rose 4.6% in the three months ended March 31, 2015, to $34.1 million from $32.6 million a year earlier. Per-share earnings gained 3.8%, to $0.55 from $0.53, on more shares outstanding. That beat the consensus estimate of $0.48. On a constant-currency basis, earnings per share jumped 20%....
HONDA MOTOR CO. LTD. ADRs $35 (New York symbol HMC; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $63.0 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.honda.com) is spending $61 million to increase capacity at its plant in Tapukara, India, by 50%, to 180,000 cars a year. The company expects to complete these upgrades in 2016. Honda’s other Indian facility makes 120,000 cars a year. The extra capacity will help Honda take advantage of rising car demand in the country: in the 11 months ended February 28, 2015, it sold 166,366 cars in India, up 43.5% from the same period a year earlier. At the same time, Honda plans to produce 39% more motorcycles in India by 2016. This expansion will cost the company $94.3 million....
NEWMONT MINING $21.71 (New York symbol NEM; Shares outstanding: 498.9 million; Market cap: $11.0 billion; TSINetwork Rating: Average; Dividend yield: 0.5%; www.newmont.com) is the world’s second-biggest gold producer after Barrick Gold (symbol ABX on Toronto).
Newmont has mines in North America, South America, Australia, New Zealand, Indonesia and Africa.
The company’s cash flow per share fell 5.0% in 2014, to $3.45 from $3.63 in 2013. Aggressive cost-cutting failed to offset a 10% decline in realized gold prices.
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Newmont has mines in North America, South America, Australia, New Zealand, Indonesia and Africa.
The company’s cash flow per share fell 5.0% in 2014, to $3.45 from $3.63 in 2013. Aggressive cost-cutting failed to offset a 10% decline in realized gold prices.
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CAMECO CORP., $19.70, symbol CCO on Toronto, rose almost 8% this week after Canada and India signed a uranium-supply agreement that will see the company sell 7.1 million pounds of uranium concentrate to India over the next five years. The concentrate is worth around $350 million at today’s uranium price. The deal is the final step in a nuclear co-operation agreement that took effect in September 2013. Canada had previously banned uranium exports to India after the country used Canadian reactor technology to build a nuclear bomb. The agreement is small compared to Cameco’s annual sales of 31 million to 33 million pounds of concentrate. However, it will likely grow over the next couple of decades as India uses more nuclear power....
NEWMONT MINING CORP. $23 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 498.9 million; Market cap: $11.5 billion; Price-to-sales ratio: 1.6; Dividend yield: 0.4%; TSINetwork Rating: Average; www.newmont.com) will soon begin work on the first phase of its Long Canyon gold mine in Nevada.
Long Canyon will produce 100,000 to 150,000 ounces a year when it opens in 2017. The midpoint of that range— 125,000 ounces— is equal to 2.6% of the 4.85 million ounces Newmont produced in 2014. The mine should last eight years.
The company will spend $250 million to $300 million on this project. Based on current gold prices, the mine should add $100 million a year to Newmont’s annual operating earnings.
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Long Canyon will produce 100,000 to 150,000 ounces a year when it opens in 2017. The midpoint of that range— 125,000 ounces— is equal to 2.6% of the 4.85 million ounces Newmont produced in 2014. The mine should last eight years.
The company will spend $250 million to $300 million on this project. Based on current gold prices, the mine should add $100 million a year to Newmont’s annual operating earnings.
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