GOLD STOCKS NEWS – Gold stocks dipped Tuesday as the Market Vectors Gold Miners ETF (GDX) fell $0.37, or 0.6%, to $62.93 per share in late morning trading. The modest weakness in gold stocks and the GDX coincided with stability in COMEX gold futures and a move lower in the broader U.S. equity markets.
The S&P 500 Index relinquished an earlier 0.8% gain to trade lower by 0.3% at 1,256.82 later this morning. Gold futures held near unchanged at $1,794 per ounce. The S&P/TSX Global Gold Index, Canada’s leading basket of gold stocks, slid 0.6% to 433.80 alongside the GDX.
Notable gold stocks moving lower this morning included GDX components Agnico-Eagle Mines (AEM), Gold Fields (GFI), and Randgold Resources (GOLD) – with declines of 0.9%, 0.7%, and 0.6%, respectively.
Despite today’s sell-off in gold stocks, the GDX has rebounded substantially in recent weeks alongside the yellow metal and broader markets. Since reaching a 52-week low of $50.42 on October 4th of this year, the gold stocks ETF has surged 24.8%.
In a report published this week, analysts at TD Securities reiterated their bullish outlook on a number of gold stocks. Among gold producers, the firm highlighted Newmont Mining (NEM), Barrick Gold (ABX), IAMGOLD (IAG), and Yamana Gold (AUY) as its “top picks.” TD has a “Buy” rating on each company.
Below are the firm’s target prices for each gold stock and the premium over the current share price:
NEM – $85.00, 24.5%
ABX – $69.00, 35.4%
IAG – $26.00, 13.5%
AUY – $20.00, 24.2%
Among gold development companies, TD Securities highlighted Canaco Resources (CAN.TSXV) and Extorre Gold Mines (XG.TSX, AMEX: XG) as its “top picks.” The firm has a C$5.00 target on CAN.TSXV, a 168.8% premium to the current share price. As for XG.TSX, TD’s C$14.00 target represents a 66.3% premium. The firm has “Speculative Buy” ratings on Canaco and Extorre.
Premier Gold Hits Highest Grades Yet at Saddle
The emerging gold company noted that drilling has intersected high-grade gold mineralization over substantial core intervals in 2011 that will be used in conjunction with historic drilling to prepare a NI43-101 compliant gold resource for the Saddle deposit following the completion of the current program. Additionally, recent step-out drilling along strike to the northwest intersected significant intervals of mineralized breccia (assays pending) and confirm Premier's belief that the Saddle Deposit represents one of the most prospective undeveloped high-grade gold deposits in North America. Full Premier Gold Mines Press Release.
- 19.36 grams per tonne (g/t) gold across 14.75 meters (m) including 80.50 g/t across 2.9m in hole SA008A
- 8.37 g/t gold across 7.8m within 2.34 g/t across 89.0m in hole SA022
- The drill intercepts continue to confirm the potential to define a significant gold resource on the existing land position held by Premier
