Gold Mid-Tiers’ Q3’19 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The mid-tier gold miners just reported their results for a phenomenal gold quarter.  In Q3’19 this metal surged after its first bull-market breakout in years, driving much-higher prevailing prices.  That should’ve led to soaring profits for these mid-tiers in the sweet spot for stock-price upside potential.  Last quarter’s results are the most important this sector has seen in a long time, a key fundamental test for gold miners.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports.  Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders.  They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.

The global nature of the gold-mining industry complicates efforts to gather this important data.  Many mid-tier gold miners trade in Australia, Canada, Mexico, the United Kingdom, and other countries with quite-different reporting requirements.  These include half-year reporting rather than quarterly, long 90-day filing deadlines after fiscal year-ends, and very-dissimilar presentations of operating and financial results.

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Gold Mid-Tiers’ Q1’19 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The mid-tier gold miners’ stocks in the sweet spot for price-appreciation potential have been struggling in recent months, grinding lower with gold.  Their strong early-year momentum has been sapped by recent stock-market euphoria.  But gold-mining stocks are more important than ever for prudently diversifying portfolios.  The mid-tiers’ recently-reported Q1’19 results reveal their fundamentals remain sound and bullish.

The wild market action in Q4’18 emphasized why investors shouldn’t overlook gold stocks.  All portfolios need a 10% allocation in gold and its miners’ stocks!  As the flagship S&P 500 broad-market stock index plunged 9.2% in December alone, nearly entering a new bear market, the leading mid-tier gold-stock ETF surged 13.7% higher that month.  That was a warning shot across the bow that these markets are changing.

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Gold-Stock Mega-Mergers Bad

By Adam Hamilton – Re-Blogged From Gold Eagle

The world’s two biggest gold miners both announced mega-mergers over the past 5 months or so.  These huge deals briefly garnered some interest in the usually-forgotten gold-stock sector, and fleeting praise from Wall Street analysts.  But gold-stock mega-mergers are bad news for gold-miner shareholders on all sides.  They reveal the serious struggles of major gold miners, and really retard future upside in their stocks.

For decades the largest gold miners in the world have been Newmont Mining (NEM) and Barrick Gold (ABX).  These behemoths have long dwarfed all their peers in operational scope.  While the gold miners are in the process of reporting Q4’18 results now, their latest complete set remains Q3’18’s.  As after every quarterly earnings season, I analyzed them in depth for the major gold miners of GDX back in mid-November.

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Gold-Stock Upleg Pauses

By Adam Hamilton – Re-Blogged From Gold Eagle

The gold miners’ stocks have slumped in January, tilting sentiment back to bearish.  This sector’s strong December upward momentum was checked by gold’s own upleg stalling out.  Gold investment demand growth slowed on the blistering stock-market rally.  But uplegs always flow and ebb, and this young gold-stock upleg merely paused.  The gold miners’ gains will likely resume soon, rekindling bullish psychology.

Most investors and analysts track the gold-mining sector with its leading ETF, the GDX VanEck Vectors Gold Miners ETF.  GDX was this sector’s pioneering ETF birthed in May 2006, creating a huge first-mover advantage that is insurmountable.  This week GDX’s net assets of $9.9b were an incredible 56.7x larger than the next-biggest 1x-long major-gold-miners ETF!  GDX dominates this space with little competition.

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GDXJ Upside Bests GDX

By Adam Hamilton – Re-Blogged From Gold Eagle

Gold miners’ exchange-traded funds are surging with gold powering higher.  These mounting gains are naturally fueling growing interest in the leading gold-stock investment vehicles.  Traders looking to deploy capital are wondering which major gold-stock ETF is superior, offering the best balance between upside potential, component fundamentals, and risks.  GDXJ takes the crown, besting its larger big brother GDX.

By my count, there are currently 14 gold miners ETFs trading in US markets.  But that’s not authoritative, as the broader ETF industry is constantly in flux.  These gold-stock ETFs collectively held $17.5b in net assets as of the middle of this week.  And two major ETFs utterly dominated, commanding fully 85.1% of all those gold-stock investments!  They are of course GDX and GDXJ, which dwarf everything else in this sector.

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Major Gold-Stock Breakouts

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold stocks are off to the races again, with big gains mounting. They just staged major breakouts, shattering a vexing consolidation that had trapped them for an entire year. Such momentum early in gold’s strong season is a very-bullish portent. As higher prices improve both technicals and sentiment, buying begets more buying. With gold-stock prices still quite low in secular terms, their upside remains huge.

Gold stocks are a small contrarian sector without a wide following. So their latest surge has surprised many investors and speculators. But it shouldn’t have. In the markets knowledge is profits, so staying informed about gold stocks’ fundamentals, technicals, and sentiment is crucial. The traders who did their homework this summer and bought in low when few others were willing are now sitting on fat unrealized gains.

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Gold Juniors’ Q2’17 Fundamentals

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The junior gold miners’ stocks have spent months grinding sideways near lows, sapping confidence and breeding widespread bearishness.  The entire precious-metals sector has been left for dead, eclipsed by the dazzling Trumphoria stock-market rally.  But traders need to keep their eyes on the fundamental ball so herd sentiment doesn’t mislead them.  The juniors recently reported Q2 earnings, and enjoyed strong results.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports.  Companies trading in the States are required to file 10-Qs with the US Securities and Exchange Commission by 45 calendar days after quarter-ends.  Canadian companies have similar requirements.  In other countries with half-year reporting, some companies still partially report quarterly.

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