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Gold Mining Stocks' Aug 5 Earnings Roster: FNV, RGLD & More

Madhurima Das
·8-min read

A few gold mining companies are lined up to release their quarterly numbers on Aug 5. Per the Zacks industry classification, the mining industry falls under the broader Basic Materials sector. The sector is anticipated to log a decline of 56.7% in the second quarter, per the latest Earnings Trends. However, the slump is not restricted to this sector alone, as 15 of the 16 Zacks sectors are expected to log declines this earnings season, mostly casualties of COVID-19 pandemic.

Gold prices have gained around 13% in second-quarter 2020 — the largest quarterly percentage increase since first-quarter 2016 when it had reported a rise of 14.6%. In fact, on the last day of the second quarter, gold crossed the $1,800 mark and hit a high of $1,804 an ounce. The COVID-19 pandemic and its devastating impact on the global economy has impacted investor’s risk appetite and boosted safe haven demand for gold.  A low interest rate environment, renewed U.S.-China tensions and a civil unrest in the United States were the primary factors that contributed to the bullion’s rally. Thus, gold miners’ second-quarter results are expected to reflect benefits of higher gold price.

However, metal producers had to suspend production, slow project construction or curb their operations in accordance to government’s mandates to contain the spread of coronavirus. This might have impacted production in the quarter. In this scenario, miners have been committed to cutting operational costs and capital spending, improving operating efficiency within existing mines and paying down debt. These actions along with lower oil prices, which makes up significant portion of a miner’s costs, might have boosted margins in the to-be-reported quarter.

Let’s take a look at six mining companies that are gearing up to report their quarter numbers on Aug 5.

Franco-Nevada Corporation FNV is slated to report second-quarter 2020numbers after the market close. The company has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.89%.

FrancoNevada Corporation Price and EPS Surprise

FrancoNevada Corporation Price and EPS Surprise
FrancoNevada Corporation Price and EPS Surprise

FrancoNevada Corporation price-eps-surprise | FrancoNevada Corporation Quote

Our proven model does not conclusively predict an earnings beat for the company this quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, the company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The company’s second quarter results are likely to reflect higher gold prices. However, some of the company’s mining operators had to temporarily suspend operations and curtail production due to the restrictions imposed amid the pandemic. This might have weighed on the company’s to-be-reported quarter’s performance. The plunge in oil price and lower spending by operators may get reflected in the energy portfolio’s performance in the quarter. Nevertheless, the company’s continued focus on lowering costs are expected to have sustained margins.

The Zacks Consensus Estimate for second-quarter earnings is currently pegged at 47 cents, which indicates an improvement of 38% from the prior-year quarter. Notably, the estimate has moved down 2% in the past 30 days.

Royal Gold, Inc. RGLD is scheduled to report fourth-quarter fiscal 2020 results after the market close. The company has beat estimates twice in the trailing four quarters, while missing the same in the other two. It has a trailing four-quarter earnings surprise of 3.22%, on average.

Royal Gold, Inc. Price and EPS Surprise

Royal Gold, Inc. Price and EPS Surprise
Royal Gold, Inc. Price and EPS Surprise

Royal Gold, Inc. price-eps-surprise | Royal Gold, Inc. Quote

The company currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Royal Gold sold 51,000 gold equivalent ounces consisting of 44,000 gold ounces, 450,000 silver ounces and 800 tons of copper related to its streaming agreements in the fiscal fourth-quarter. This solid performance along with high gold prices during the to-be-reported quarter might get reflected in the to-be-reported quarter’s performance.

The Zacks Consensus Estimate for the fourth-quarter fiscal 2020 earnings is pegged at 45 cents, flat compared with the prior-year quarter. Notably, the estimate has moved down 12% in the past 30 days.

B2Gold Corp. BTG is scheduled to report second-quarter 2020 results after the closing bell. The company beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, while missing once and matching the same in the remaining one. It has a trailing four-quarter earnings surprise of 21.5%, on average.

B2Gold Corp Price and EPS Surprise

B2Gold Corp Price and EPS Surprise
B2Gold Corp Price and EPS Surprise

B2Gold Corp price-eps-surprise | B2Gold Corp Quote

The company currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

In the second quarter, sales volume was 257,100 ounces compared with the 203,700 ounces in the prior-year quarter. Impact of rising gold prices and higher units of gold sold may get reflected in the second-quarter results. Further, the company’s cost-control efforts are anticipated to have contributed to the to-be-reported quarter’s margin.

The Zacks Consensus Estimate for B2Gold’s second-quarter earnings is currently pegged at 14 cents, suggesting an improvement of 180% from the year-ago quarter. The estimates have been revised upward by 17% over the past 30 days.

IAMGOLD Corporation IAG is slated report second-quarter 2020 results after the market close. The company has a trailing four-quarter negative earnings surprise of 144.4%, on average.

Iamgold Corporation Price and EPS Surprise

Iamgold Corporation Price and EPS Surprise
Iamgold Corporation Price and EPS Surprise

Iamgold Corporation price-eps-surprise | Iamgold Corporation Quote

The company currently has a Zacks Rank #3 and an Earnings ESP of +3.26%.

High gold prices are likely to get reflected in the company’s second-quarter results. However, the suspension of operations at the Rosebel mine near the end of the quarter might have dented production somewhat.

The Zacks Consensus Estimate for second-quarter earnings is currently pegged at 5 cents, indicating an improvement of 267% from the prior-year quarter. Notably, the estimate has moved up 25% in the past 30 days.

Osisko Gold Royalties Ltd OR is scheduled to report second-quarter 2020 results after market close. The company has surpassed estimates twice in the trailing four quarters, while matching the same in the other two. It has a trailing four-quarter earnings surprise of 39.6%, on average.

Osisko Gold Royalties Ltd Price and EPS Surprise

Osisko Gold Royalties Ltd Price and EPS Surprise
Osisko Gold Royalties Ltd Price and EPS Surprise

Osisko Gold Royalties Ltd price-eps-surprise | Osisko Gold Royalties Ltd Quote

The company currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

In the second quarter, several of the company’s assets were affected by COVID-19, particularly in Quebec where mining activities had not been considered an essential service for some time. The company announced that it has received approximately 12,300 ounces of attributable gold equivalent in the second quarter. High gold prices will get reflected in the to-be-reported quarter’s results.

The Zacks Consensus Estimate for second-quarter earnings is currently pegged at 2 cents, suggesting a decline of 50% from the year-ago quarter. The estimates have moved south by 33% over the past 30 days.

Pretium Resources, Inc. PVG is slated to release second-quarter 2020 results after the closing bell. The company has surpassed the Zacks Consensus Estimate in three of the four trailing quarters while missing the same once. It has a trailing four-quarter earnings surprise of 33.1%, on average.

Pretium Resources, Inc. Price and EPS Surprise

Pretium Resources, Inc. Price and EPS Surprise
Pretium Resources, Inc. Price and EPS Surprise

Pretium Resources, Inc. price-eps-surprise | Pretium Resources, Inc. Quote

The company has a Zacks Rank #3 and an ESP of +5.88%.

Uninterrupted production from the Brucejack Mine and higher gold prices might have benefited the second-quarter performance. However, modestly higher costs due to enhanced safety measures are likely to have weighed on the to-be-reported quarter’s performance.

The Zacks Consensus Estimate for second-quarter earnings is currently pegged at 17 cents, indicating an improvement of 89% from the prior-year quarter. The estimate has gone up 21% in the past 30 days.

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Pretium Resources, Inc. (PVG) : Free Stock Analysis Report
 
FrancoNevada Corporation (FNV) : Free Stock Analysis Report
 
Iamgold Corporation (IAG) : Free Stock Analysis Report
 
B2Gold Corp (BTG) : Free Stock Analysis Report
 
Royal Gold, Inc. (RGLD) : Free Stock Analysis Report
 
Osisko Gold Royalties Ltd (OR) : Free Stock Analysis Report
 
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