Gold Stocks: Barrick Gold Corporation (NYSE:ABX), Kinross Gold Corporation (USA) (NYSE:KGC), Newmont Mining (NYSE:NEM), New Gold (NYSEMKT:NGD)

Posted by on Mar 11, 2014

The continuing Ukraine situation has lifted the prices of Gold Futures, thereby, sending a positive vibe across the gold mining industry. Resultantly, Barrick Gold Corporation (USA) (NYSE:ABX) and the stocks of other gold miners have been trading in positive territory. It is to be noted that the plunge in the gold prices in the last year has costed the gold miners tremendously as all of them are nearly unprofitable at this point of time. Barrick Gold Corporation (USA) (NYSE:ABX) alone has posted a loss of close to $10.4 million in 2013. In view of the pressure being built up over this gold miner, Raymond James has assigned market perform rating to it as of now. Barrick Gold Corporation (USA) (NYSE:ABX) stock opened at $19.92 in last session, and closed at $19.75, while the day range of ABX stock is $19.58-$19.93. The stock showed a negative weekly performance of -3.66%.

In spite of some easing out of gold prices, gold miners are largely challenged to keep their costs under control. Gold miners with lower costs typically perform better than their counterparts who have higher costs. But, since the gold prices remain above the level of $1300 per ounce, Kinross Gold Corporation (USA) (NYSE:KGC) proved to be an exception to these costs concerns as its fourth quarter cost of $1169 per ounce and its future guidance cost at $950-$1050 per ounce seems to be in a comfortable territory, according to the experts. Kinross Gold Corporation (USA) (NYSE:KGC) stock opened at $4.90, in last session and closed at $4.92, by gained 0.61%. The 52 week range was $4.23-$8.17. Company’s market capitalization is $5.63 billion.

Newmont Mining Corp (NYSE:NEM) rode higher in the previous day echoing the sentiment of the broader gold segment, which has been higher amid Ukraine crisis. In the recent past, Newmont has been facing issue back in Indonesia after the country’s government imposed new tax norms over the exports. However, according to the experts, Newmont has little to worry about the matter, as its profitability is mainly dependent on the gold prices rather then the copper exports. Recently, Newmont Mining Corp (NYSE:NEM) has also modified its dividend policy, which is now linked to gold prices, in order to maintain its financial flexibility. Nevertheless, the Indonesian government’s latest decision to roll back its tax plans on certain conditions is definitely a relief to the gold miner. Newmont Mining Corp (NYSE:NEM) stock loosed -1.18% and finished the last session at $24.31. The EPS of the stock remained -1.48. Company’s market capitalization is $12.11 billion.

New Gold Inc. (USA) (NYSEMKT:NGD) has received an upgrade on the price target. The firm is currently now on ‘hold’ rating, while the target price for the same is at 22.77% higher over previous close. New Gold Inc. (USA) (NYSEMKT:NGD) stock opened the session at $6.00, and closed the session at $5.99. The 52 week range of the NGD stock remained $4.68-$9.89 and the day range was $5.91-$6.09.

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