gold prices
BCE INC. $44.58 (Toronto symbol BCE; Shares outstanding: 775.9 million; Market cap: $34.8 billion; TSINetwork Rating: Above Average; Yield: 5.2%; www.bce.ca) has gained in response to U.S.-based Verizon Communications’ (New York symbol VZ) announcement that it will not enter the Canadian wireless market right now (see box below).
BCE is Canada’s second-largest wireless carrier, with 7.72 million subscribers....
BCE is Canada’s second-largest wireless carrier, with 7.72 million subscribers....
NEWMONT MINING CORP. $31 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 497.7 million; Market cap: $15.4 billion; Price-to-sales ratio: 1.8; Dividend yield: 3.2%; TSINetwork Rating: Average; www.newmont.com) has written down the value of its gold inventories, as well as two of its gold mines in Australia, by $1.8 billion....
HECLA MINING COMPANY (New York symbol HL; www.hecla-mining.com) explores for, mines and processes silver and gold in the U.S. and Mexico. Most of its silver output comes from its Greens Creek mine in Alaska and its Lucky Friday mine in Idaho. In the three months ended June 30, 2013, Hecla’s revenue rose 27.3%, to $85.3 million from $67.0 million a year earlier. The company lost $0.03 a share, compared to a profit of $0.01. The loss mostly came from lower silver prices and costs related to its recent acquisition of Aurizon Mines....
NEWMONT MINING CORP. $31 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 497.7 million; Market cap: $15.4 billion; Price-to-sales ratio: 1.8; Dividend yield: 3.2%; TSINetwork Rating: Average; www.newmont.com) has written down the value of its gold inventories, as well as two of its gold mines in Australia, by $1.8 billion. That’s because gold prices have dropped 21%, from around $1,800 an ounce in October 2012 to $1,420 today.
The company links its dividend to gold prices, so it has also cut the quarterly payout by 28.6%, to $0.25 a share from $0.35. The new annual rate of $1.00 yields 3.2%.
Newmont is still a hold.
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The company links its dividend to gold prices, so it has also cut the quarterly payout by 28.6%, to $0.25 a share from $0.35. The new annual rate of $1.00 yields 3.2%.
Newmont is still a hold.
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NEWMONT MINING $29.02 (New York symbol NEM; Shares outstanding: 492.3 million; Market cap: $14.5 billion; TSINetwork Rating: Average; Dividend yield: 4.8%; www.newmont.com) gets 90% of its revenue from gold mines in the U.S., Australia and Peru. Copper, zinc and other metals supply the remaining 10%.
Gold is down 33%, from $1,800 an ounce in September 2012 to $1,204 today. That’s partly because the U.S. Federal Reserve has indicated that it will soon scale back its bond-purchasing program, known as quantitative easing. Slowing growth in the money supply will reduce the likelihood of a sharp increase in inflation. Many investors buy gold as a hedge against inflation.
In response, Newmont is cutting jobs and postponing building new mines. The company also links its dividend to the price of gold, so it has lowered its quarterly payout by 17.6%, to $0.35 a share from $0.425, for a 4.8% yield. Further dividend cuts seem likely, particularly if gold prices continue to fall.
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Gold is down 33%, from $1,800 an ounce in September 2012 to $1,204 today. That’s partly because the U.S. Federal Reserve has indicated that it will soon scale back its bond-purchasing program, known as quantitative easing. Slowing growth in the money supply will reduce the likelihood of a sharp increase in inflation. Many investors buy gold as a hedge against inflation.
In response, Newmont is cutting jobs and postponing building new mines. The company also links its dividend to the price of gold, so it has lowered its quarterly payout by 17.6%, to $0.35 a share from $0.425, for a 4.8% yield. Further dividend cuts seem likely, particularly if gold prices continue to fall.
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Kirkland Lake Gold, $4.06, symbol KGI on Toronto (Shares outstanding: 70.2 million; Market cap: $280.6 million; www.klgold.com), has one producing asset—the Macassa gold mine in Kirkland Lake, Ontario. Macassa produced about 91,518 ounces of gold in the year ended April 30, 2013. The company undertook a big expansion of the project, but it experienced operational delays, mainly due to software and electronic issues that reduced the mine’s hoisting capacity. The company will likely produce between 150,000 and 180,000 ounces over the next year. Its cash flow could rise as high as $1.64 a share. The stock trades at 3.2 times that estimate....
NEWMONT MINING $29.02 (New York symbol NEM; Shares outstanding: 492.3 million; Market cap: $14.5 billion; TSINetwork Rating: Average; Dividend yield: 4.8%; www.newmont.com) gets 90% of its revenue from gold mines in the U.S., Australia and Peru. Copper, zinc and other metals supply the remaining 10%.
Gold is down 33%, from $1,800 an ounce in September 2012 to $1,204 today....
Gold is down 33%, from $1,800 an ounce in September 2012 to $1,204 today....
CONAGRA FOODS INC., $34.93, New York symbol CAG, rose 5% this week after it reported better-than-expected earnings. In its 2013 fiscal year, which ended May 26, 2013, ConAgra earned $773.9 million, or $1.85 a share. That’s up 65.4% from $467.9 million, or $1.12 a share, in 2012. These gains are mainly due to Ralcorp Holdings, the largest maker of private label food in the U.S., which ConAgra recently bought for $4.75 billion. If you disregard costs to integrate this purchase and other unusual items, ConAgra’s earnings would have risen 17.4%, to $2.16 a share from $1.84. On that basis, the latest earnings beat the consensus estimate of $2.15 a share....
Richmont Mines, $1.55, symbol RIC on Toronto (Shares outstanding: 39.6 million; Market cap: $61.4 million; www.richmont-mines.com), produces gold from two projects: Beufor in Quebec and the Island Gold mine and mill in northern Ontario. The company also has a number of exploration prospects in Ontario and Quebec. Richmont aims to start generating positive cash flow from its existing mines. It will then use this cash flow to build both projects’ ore-processing capacity, and to finance drilling to increase their reserves. It also aims to advance its exploration projects. The company currently holds cash of $43.8 million, or $1.11 a share, and has almost no debt. However, Richmont’s production fell 13.2% in the three months ended March 31, 2013, to 14,261 ounces from 16,430 a year ago. It also reported negative cash flow....
