Mining stocks decline after gold price correction

In heavy volumes gold suffered its worst trading day of 2017 on Thursday with the metal coming under pressure from a rise in the US dollar to 2-month highs and a looming interest rate hike in the US” – informed mining.com on the 2 March this year.

What was the result of that situation?


Gold stocks were sold heavily and their value was falling. The major gold miners’ shares were experiencing decline despite gold being still up in value.

Barrick Gold Corp (NYSE:ABX, TSE:ABX) lost 4.6% – 32 million shares which led the world’s first-position gold producer the sixth most active stock on NYSE. Now, Barrick is worth $21.5 in New York – still up a 14%.

Newmont Mining Corp (NYSE:NEM) went through the stumble quite smoothly – 2.4% loss. However, the decline led the company to close below its this year opening levels. In 2017, the company expects to top 5m ounces production and to range between 4.5 and 5.4 million ounces in the next 5 years.

AngloGold Ashanti (NYSE:AU) fell by 4.9% in Thursday trade which resulted in the company’s ADRs worth decrease to $4.3 billion in New York. Now, it is in the black as for now in 2017.

Goldcorp (NYSE:GG TSE:G) noted 4% decline. The company still remains at the level of the two-digit gains. Goldcorp is undergoing the process of rebuilding its portfolio which is necessary after the 17% decrease in production last year.

Kinross Gold (NYSE:KGC, TSX:K) had 4.8% loss and its worth fell to $4.1 billion on the NYSE.

Newcrest Mining Limited (ASX:NCM,OTCMKTS:NCMGY) turned out to lose as much as 5.7%.

South African miner Gold Fields (NYSE:GFI) was in a better situation with its 3.8% decline. Last year, the company noted the steady production at 2.1 million ounces and is still admitting profits. Its market worth is $2.5 billion.

Polyus Gold (MCX:PLZL, ) – world’s lowest cost gold producer from Russia – was affected only slightly in Moscow (here its worth is about RUB1 trillion/$17 billion).

Agnico-Eagle (NYSE:AEM) lost this year’s gains by dropping 3.8%. Its market worth comes to $9.1 billion on the NYSE.

Sibanye Gold (NYSE:SBGL) fell by 4.6% in New York, but it is still trading 9.2%. Last year, the company produced 1.5m ounces and was in the top 10 of gold producers.

Randgold Resources (LON:RSS,NASDAQ:GOLD) declined below 3% on the day. It is considered the best performing large gold miner (17% gain in value and a market worth of $8.4 billion).

Yamana Gold (TSE:YRI), Iamgold Corp (NYSE:IAG) and Eldorado Gold Corp (TSX:ELD) all lost more than 6% which pushed the stocks into negative territory for the year.

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Michael Wood

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