Gold & Gold Stocks Dipped Tuesday; Time To Buy The Dip?
Ok, so if you don’t know what “BTFD” stands for, start with “Buy The” and end with “F-word Dip”. Regardless of your “F-word,” is this a dip-buying opportunity for gold after Tuesday’s drop? Let’s take a look at the stats and you can arrive at our own conclusion.
A number of gold stocks dropped early on this week. These included the likes of Barrick Gold stock (GOLD-Stock Report), Kinross Gold stock (KGC-Stock Report), Newmont Gold stock (NEM-Stock Report), and even Gold Fields stock (GFI-Stock Report). While Barrick gold stock closed at the lowest percentage of the 4, all but one are still holding higher levels compared to the start of the year. The one that has missed the mark is Gold Fields.
Is Something Wrong With Gold Fields?
Most of the year, shares of Gold Fields haven’t underperformed. They just haven’t really performed. Since the start of the year, GFI stock is pretty flat. While it had a jump to highs of $7/90 late last month, it’s had a tough time recovering after the previous drop in gold at the end of February. On the year, the gold stock hit lows of $5.59 and as of March 10, shares settled out around $6.48.
Considering Gold Fields started the year at $6.68, there’s been little progress in the market especially considering the monster rally gold prices have seen. One of the possible culprits could be the results of the company’s recent earnings.
Gold Fields missed on both earnings per share and revenue. This is in consideration of the fact that most miners hit or exceeded the mark based on the trailing price of gold. Will things turn around this year based on the current trend of gold prices?
Better Gold Stocks To Watch?
But just because Gold Fields missed the mark, doesn’t mean all gold stocks should be questioned right now. Barrick gold stock has been maintaining a trading level above $19 for most of February and March. Other than the late-February flash drop in gold, Barrick has seen an increase in trading volumes this quarter. One of the keys to its progress was the company’s better than expected financial results.
The company’s Q4 EPS beat estimates while sales came in ahead of forecasts. Gold production delivered over 1,400 ounces of gold with an All-In Sustained Cost of $923 per ounce & a realized gold price o just over $1,480 per ounce. Considering the monstrous move in prices this year, will the company be looking at another big quarter?
Kinross gold stock also managed to sustain most of its gains for the year despite the recent dip. After hitting highs of $6.27, shares pulled back at the end of February following suit of the rest of the sector. This first move came as the company reported better than expected earnings. The company added 7.7 million ounces of gold to estimated measured and indicated resources.
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Earnings per share o $0.13 came in better than Wall Street estimates of $0.10 while sales of $996.2 million beat the $988.2 million analysts estimated for Q4. With the filing of a new technical report or its Paracatu operation in Brazil, the company is looking to expand its portfolio. Based on its findings, the company expects to produce an average of roughly 540 gold ounces annually through 2031.
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