Stock Preacher

Barrick Gold said after the close today that it plans to raise up to US$3.5B through a share offering that will eliminate most of its remaining Gold hedging contracts, giving the world’s biggest gold producer full exposure to changes in the precious metal’s market price. The Toronto-based company announced the move hours after Gold climbed above US$1,000oz for the first time since March 2008. Investors’ renewed interest has been ascribed to weakness in the US$ and continuing low interest rates that have dampened returns on holding cash and other liquid investments. Barrick explained its move by pointing to an “increasingly positive” outlook for Gold. It added that it expects “global monetary and fiscal re-inflation will be necessary for years to come, resulting in an increased risk of higher inflation and a future negative impact on the value of global currencies”, also it cited a continuing robust balance between the metal’s supply and demand. Read more

Popularity: unranked [?]

Let’s have a look at the one of the Top 10 Gold Miners in the World (Number 3 in North America): Kinross Gold Corporation (KGC) from a Technical POV (point of view).

The overall analysis after today’s market action is Bearish overall, in the near term it is Bearish, mid-term Neutral, and long term Very Bearish, this can change on any continuing strong upside action with good volume.

Today’s Action (November 13th, 2008)

KGC 11.41 -2.00 Volume13,697,493

There is a Gap Open Up on October 29, 2008 at (8.59 to 8.94); the near term resistance is 12.48, the 50 day moving average at 13.19, support 8.77 and next 6.85.

This is Kinross Gold Corporation: Kinross Gold likes Gold mining so much since prices have risen sharply that it has acquired three North American Gold miners Echo Bay Mines, Crown Resources, and Bema Gold. Those transactions made Kinross one of the world’s Top 10 Gold miners, raising its proved and probable reserves of 45MM ozs of Gold and another 75MM ozs of Silver. Nearly half of the company’s revenues come from its Fort Knox and Round Mountain properties in the USA. Kinross also has operations are located in Brazil, Chile, Russia, and Zimbabwe. Kinross bought Bema for about $3B b at the beginning of 2007 a deal that came on a wave of consolidation in the Gold mining industry.

Gold Demand: Strong domestic and international demand

Large economies of scale: Large

Kinross Gold Competitors

Barrick Gold, Toronto, Canada

Goldcorp, Vancouver, Canada

Newmont Mining, Denver, CO

Note: In the metals mining sector demand is driven by industrial demand and economic growth, both domestic and foreign. A company’s profitability depends on volume and efficient operations. Large companies like Kinross can afford to discover and develop new deposits and increase reserves. Small companies typically own just one mine, limit exploration to that one property, and operate it as efficiently as possible. Gold mining today is highly automated; annual revenue per employee is approx. US$300,000. The overall analysis after yesterday’s market action is Bearish overall, in the near term it is Neutral, mid-term Bearish and long term Bearish, this can change on any strong upside action with good volume.

Gold and Politics
On August 15, 1971, US President, Richard Nixon unilaterally canceled the Bretton Woods system and stopped the direct convertibility of the United States dollar to gold. As a result, the U.S. dollar was decoupled from gold, and gold prices could fluctuate like any other commodity.

The data is limited when comparing the performance of Gold prices as they relate to the political affiliation of the President of the United States. There are some striking similarities between the performance of Gold prices during the great Gold bull market of the 1970s and today’s Gold bull market and how the Presidential political affiliation was and is tilted.

Popularity: 2% [?]

Let’s have a look at the Golden name in the world’s Gold mining sector: Barrick Gold Corporation (ABX) from a Technical POV (point of view).

The overall analysis after Fridays (11-07-08) market action is Bearish overall, in the near term it is Neutral, mid-term Neutral, and long term Very Bearish, this can change on any strong upside action with good volume.

Barrick closed up 3.17 pts at 25.43 volume approaching 15MM/shrs on the day (Nov. 04, 2008)

There is a Gap Open Up on October 29, 2008 at (20.39) and 3 Open Gaps Down on the chart dating back to August 5, 2008 (39.50) thru October 2, 2008 (36.00), the near term resistance is the 50 day moving average at 29.10.

This is Barrick Gold Corporation: In the world of mining, Barrick Gold is the Gold Standard. The company became the world’s One # One Gold producer, ahead of Newmont Mining and AngloGold Ashanti, after acquiring Placer Dome in 2006. Barrick puts out 8MM ozs of Gold annually and has 125MM ozs in proven and probable reserves. About ½ of its production comes from the North American operations, which include Goldstrike, located in Nevada’s Carlin Trend Gold producing region. Outside of North America Barrick has active projects in Tanzania, Peru, and Australia. On the Placer Dome acquisition came huge copper mining operations that brought Barrick more than 6B Lbs of Copper reserves.

Barrick Gold Corp (ABX)
Expected next earnings release:
Announcement date: 2/19/2009 – Before Market
Earnings Quarter: Q4
Announcement Status: Unconfirmed
Expected next dividend:
Dividend Announcement Date: 10/29/2008
Dividend Record Date: 11/28/2008
Dividend Pay Date: 12/15/2008
Dividend Amount: 0.20

Note: In the metals mining sector demand is driven by industrial demand and economic growth, both domestic and foreign. A company’s profitability depends on volume and efficient operations. Large companies like Barrick can afford to discover and develop new deposits and increase reserves. Small companies typically own just one mine, limit exploration to that one property, and operate it as efficiently as possible. Gold mining today is highly automated; annual revenue per employee is approx. US$30 The overall analysis after yesterday’s market action is Bearish overall, in the near term it is Neutral, mid-term Bearish and long term Bearish, this can change on any strong upside action with good volume.

Gold and Politics
On August 15, 1971, US President, Richard Nixon unilaterally canceled the Bretton Woods system and stopped the direct convertibility of the United States dollar to gold. As a result, the U.S. dollar was decoupled from gold, and gold prices could fluctuate like any other commodity.
The data is limited when comparing the performance of Gold prices as they relate to the political affiliation of the President of the United States. There are some striking similarities between the performance of Gold prices during the great Gold bull market of the 1970s and today’s Gold bull market and how the Presidential political affiliation was and is tilted.

Democrat Barack Obama has been elected to become the 44th President of the United States of America, and some gold bugs are extremely happy because the biggest Gold bull market in modern history peaked during a political landscape that is similar to what we are seeing today.

Popularity: 1% [?]