HomeMost PopularUnveiling Q4 2023: Insights Into Gold Miners' Earnings

Unveiling Q4 2023: Insights Into Gold Miners’ Earnings

Actionable Trade Ideas

always free

As the curtain rises on the final act of the fourth-quarter reporting season, gold miners step into the limelight. While a few remain backstage, the major players have taken the stage, showcasing pivotal trends for the sector.

The fourth quarter unveiled a tapestry of results for gold miners, though with the gold price ascending steadily throughout the quarter. Any minor setbacks appear poised for a turnaround in the present quarter.

Gold-Dusted Earnings: Trails and Triumphs

Newmont, the colossus of gold mining, outshone expectations in the fourth quarter. With adjusted earnings of 50 cents per share, surpassing the consensus of 44 cents, the company also reported revenue of $3.96 billion, outstripping projections of $3.42 billion.

This quarter marked a notable shift for Newmont, having considerably lagged behind estimates in the prior two quarters. Gazing forward, the miner sets its sights on nearly 6.9 million gold ounces in production for 2024, a leap from the 5.5 million ounces mined last year.

Barrick Gold presented a mixed spectacle in the fourth quarter, surpassing earnings estimates but falling slightly short on revenue. Despite recorded adjusted earnings of 27 cents per share on $3.06 billion in revenue, analysts anticipated 21 cents per share on $3.14 billion in revenue.

Reporting higher production figures in the fourth quarter, Barrick forecasts preliminary gold production of 4.05 million ounces for 2023, mirroring its guidance from the third-quarter release. Looking ahead, the miner aims for increased gold output, setting a target of 3.9 million to 4.3 million ounces for 2024, albeit falling short of expectations due to operational challenges.

Agnico Eagle Mines emerged victorious on both earnings and revenue, boasting 57 cents per share in adjusted earnings on $1.76 billion in revenue, exceeding the anticipated 49 cents per share on $1.71 billion.

Kinross Gold also struck gold in the fourth quarter, exceeding earnings and revenue forecasts with 11 cents per share in adjusted earnings on $1.12 billion in revenue, compared to expectations of 10 cents per share on $1.07 billion in revenue.

Navigating Gold Miner ETFs

Earnings in the gold mining realm pivot heavily on fluctuations in the gold price. As Goldman Sachs analysts foresee a 6% uptick in gold pricing over the upcoming year, aiming for $2,175 per troy ounce, they caution that gold prices may linger in a range in the near term, amidst uncertainties about the Federal Reserve’s interest-rate course.

An investment voyage into exchange-traded funds offers a streamlined approach to a portfolio of gold miners, eliminating the need to handpick individual stocks within the sector. Notable options include the VanEck Gold Miners ETF (GDX), boasting $11.1 billion in assets, and the VanEck Junior Gold Miners ETF (GDXJ) with $3.5 billion in assets.

While GDX houses shares of major global gold miners, like Newmont (12.48% of the ETF’s net assets), Barrick Gold (8.96%), Agnico Eagle Mines (8.38%), Franco-Nevada (7.02%), and Wheaton Precious Metals (6.49%), it has seen a decline of 1.39% over the past year. Meanwhile, GDXJ, holding junior gold miners, including Pan American Silver (6.62%), Kinross Gold (6.31%), Alamos Gold (5.87%), B2gold (4.97%), and Evolution Mining (4.66%), slipped by 3.14%.

Unveiling ETFs for Gold Touch

Besides ETFs harboring gold miners, investors might consider gold-backed ETFs, which store physical gold directly or through derivative contracts. For those inclined to gold ownership sans physical storage, ETF options like the SPDR Gold Trust (GLD) or the iShares Gold Trust (IAU) beckon.

The plethora of gold-related ETFs presents varied opportunities, with macroeconomic variables such as interest rates warranting consideration. Given gold’s allure as a sanctuary asset, maintaining exposure to the sector may strike a chord with some investors, particularly as interest rates decline.

As the currents of interest rates ebb, gold may emerge as a beacon, attracting a broader spectrum of investors to its luminous allure.

For a deeper dive into news, insights, and analysis, set sail towards the Beyond Basic Beta Channel.

Read on at ETFTrends.com.

The opinions and viewpoints articulated here are those of the author and do not necessarily echo the sentiments of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.