Globe editors have posted this research report with permission of Dundee Capital Markets. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:
Gold producers under coverage are expected to report a material improvement in operating results in 3Q, with production increasing by 6 per cent, and total cash costs decreasing by 6 per cent. However, the impact of weaker commodity prices has more than offset this, and earnings are forecast to decrease 57 per cent. In 3Q, gold averaged $1,126/oz (U.S.), down 6 per cent from 2Q's $1,194/oz, while silver averaged $14.95/oz, down 9 per cent from 2Q's $16.44/oz.
Of the 19 producers under coverage, QoQ we forecast 12 will report an increase in production and 10 will report a reduction in costs. The greatest overall improvement will be realized by New Gold, Barrick, and B2Gold, with positive changes also to be realized by Goldcorp, Agnico Eagle, and Yamana. However, narrow margins and declining gold prices could yield financial results which diverge from these expected changes in operating results.
Read the full report here.
Globe app users click here for the full report
Read other research reports here.