Let’s talk about gold. The precious metal is the traditional safe haven investment, backed by its use – starting 5,000 years ago – as a reliable store of value. Investors looking to protect their portfolio and secure their wealth traditionally bought heavily into gold, and the price of gold has sometimes been used as a proxy (albeit an inverse one) for general economic health. In a recent report, investment firm J.P. Morgan took a long look at the state of the gold industry – specifically, the gold mining industry. Analyst Tyler Langton points out an underlying paradox in two basic facts about gold mines. “Over time, in a commodity business, the lowest cost producers with the longest life assets tend to be the relative winners… Gold mines, when compared to base metals, typically have much shorter mines (sic) lives, and the gold miners have to focus on replacing reserves to maintain levels of production,” Langton noted. At first glance, Langton’s paradox may seem to point away from heavy investments in gold mines. After all, these are high-risk commodity producers. But current times are actually pretty good for gold miners. Prices are elevated compared to recent years; the metal is running just under $1,800 per ounce now, but it peaked above $2,000 in August of last year, at the height of the corona shutdowns, and it was as low as $1,200 just 18 months ago. The current high prices bode well for producers. Langton states his belief that there is support for current prices, with gold and gold mines being seen as a hedge against ‘macro uncertainty.’ He believes that the main sources of support will be found in “real interest rates remaining lower for longer and COVID-19 related stimulus measures continuing to expand central bank balance sheets.” With this in the background, Langton and his colleagues have begun selecting the gold mining stocks they see as winners in the current environment. Unsurprisingly, they like the companies that show discipline on M&A activity, a focus on free cash flow, and solid returns to shareholders. Using the TipRanks database, we’ve pulled up the details on several of their recent picks. Are they as good as gold? The analysts seem to think so; all are Buy-rated and potentially offer significant upside. Let’s dig in. Kinross Gold Corporation (KGC) First up, Kinross Gold, is a mid-cap company– valued at $8.6 billion – with active mining operations in the US, Brazil, West Africa, and Russia. Taken together, these operations have proven and probable gold reserves of 29.9 million ounces. The company is guiding toward 2.4 million ounces in total production for 2021, rising to 2.9 million ounces by 2023. The company’s profitability can be seen by cost of sales per ounce, at $790, and the all-in sustaining cost, at $1,025 per ounce. With gold currently selling at $1,782 on the commodity exchanges, Kinross’s near-term success is clear. Two sets of statistics highlight Kinross’ profitability. First, the company’s recent record of quarterly results shows steadily rising revenues and earnings. Aside from a dip in 1Q20, at the start of the corona crisis, Kinross’ revenues have been gaining steadily since the start of 2019 – and even in 2020, every quarter showed a year-over-year increase. After 7 years without dividend payments, Kinross used its strong performance in recent months to restore the company dividend. Payments are still made irregularly, but since announcing in September 2020 that the dividend would be reinstated, two payments have been made and a third has been announced for March of this year. Each payment has been for 3 cents per share, which translates to a modest yield of 1.6%. The key point here is not strength of the yield, but rather, the confidence that management has displayed in the near- to mid-term by restarted dividend payments. Based on current production projections, the payments are expected to continue until 2023. Tyler Langton, in his notes on Kinross, comes to a bullish conclusion: “Given its expected growth projects and pipeline of additional projects, we think Kinross will be able to maintain average annual production of 2.5mm oz. over the next decade. The company has an attractive cost profile, and we expect costs to decrease over the next several years. The company should also generate attractive strong levels of FCF at current gold prices, and we expect Kinross to direct this cash toward internal growth projects and its dividend.” In line with these comments, he selects Kinross as JPM’s ‘top pick in the gold sector,’ and rates the stock as Overweight (i.e., a Buy). His $11 price target suggests a 61% upside potential in the coming year. (To watch Langton’s track record, click here) Kinross gets a Strong Buy recommendation from the analyst consensus, based on a 6 to 2 split between the Buy and Hold reviews. Wall Street’s analysts have set an average price target of $11.25, slightly more bullish than Langton’s, and implying a one-year upside of 64% from the current trading price of $6.85. (See KGC stock analysis on TipRanks) SSR Mining, Inc. (SSRM) Moving up north to Canada, we now take a look at Vancouver-based SSR Mining. This is another mid-cap mining company, producing gold and silver in quantity through four active mines in Canada, the US, Argentina, and Turkey. The Canadian, US, and Turkish operations produce primarily gold, while the Puna operation is Argentina’s largest silver mine. Although SSR missed on both the top- and bottom-line estimates in its latest quarterly report, for the 2020 full-year production numbers, the company met the previously set guidance. Gold production for the year hit 643,000 ounces, with 31% of that total coming in the fourth quarter. Silver production at the Puna mine reached 5.6 million ounces, beating the guidance figures. Fourth quarter production was 39% of the total. Last November, the company announced that it will be initiating a dividend policy starting in 1Q21. The ‘base dividend’ will be set at 5 cents per share, or a 1% yield; as with KGC above, the key point is not whether the dividend is high or low, but that management is starting to pay it out – a sign of confidence in the future. Langton bases his assessment of SSRM on its strong free cash flow forecast, writing, “At current gold forward prices, we estimate that SSR will generate close to $400mm of FCF in 2021 and around $500mm per year from 2022-2024. Furthermore, starting from a 2021 base, we forecast that SSR would generate cumulative FCF from 2021- 2025 of US$2.3bn, or roughly 59% of its current market cap…” In line with his comments, Langton puts an Overweight (i.e. Buy) rating on the stock, along with a $24 price target that indicates a 60% upside for the next 12 months. (To watch Langton’s track record, click here) There are 8 recent reviews on SSRM shares – and every single one of them is a Buy, making the Strong Buy analyst consensus rating here unanimous. The stock is selling for $15.25, and its robust $28.78 average price target suggests a high 89% one-year upside. (See SSRM stock analysis on TipRanks) Newmont Mining (NEM) Last on the list, Newmont, is the world’s largest gold miner, boasting a $45.78 billion market cap, and active production in a variety of metals, including gold, silver, copper, zinc, and lead. The company has assets – both operations and prospects – in North and South America, Africa, and Australia, and is the only gold miner listed on the S&P 500. With that last detail in mind, it’s worth noting that NEM shares are up 29% in the last 12 months – more than the S&P’s gain of 16% over the same period. In 3Q20, the company showed $3.12 billion in revenue. While this missed the forecast, it did improve on the prior year’s Q3 by 5.4%. The Q3 results were also a company record, with a free cash flow of $1.3 billion. Results below expectations were a common pattern for the company’s 2020 performance in Q1 and Q2, as well. The corona crisis depressed results, but even the depressed results were up year-over-year. Newmont has an active capital return program for shareholders. Since the beginning of 2019, the company has used both dividends and share repurchases to return capital to stakeholders, to the tune of $2.7 billion. This past January, Newmont announced a $1 billion continuation of the share repurchases. Looking ahead to 2021, the company has also announced a new dividend framework, setting the base payment at $1 per share annualized, and reiterated its commitment to capital return. JPM’s Michael Glick led the note on Newmont, starting out by acknowledging the company’s strong production: “We are forecasting NEM’s attributable gold production to remain relatively steady over the 2021-2025 time frame at around 6.5-6.7mm oz…” Of the company’s mid-term production prospects Glick went on to say, “In terms of production, the ongoing expansion at Tanami should deliver incremental production and lower cash costs starting in 2023. Additionally, we expect Newmont to approve its Ahafo North and Yanacocha Sulfides projects this year, which should bring on incremental production for the company after the projects’ roughly three-year development time-line.” Glick likes Newmont’s FCF and production numbers, using them to back his Overweight (Buy) rating. His $83 price target implies an upside of 46% for the months ahead. (To watch Glick’s track record, click here) Newmont, for all its strength, still gets a Moderate Buy rating from the analyst consensus. This is based on 8 reviews, including 5 Buys and 3 Holds. The average price target is $74.97, suggesting room for 31% growth from the current trading price of $56.99. (See NEM stock analysis on TipRanks) To find good ideas for gold stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.
In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.
Your level of interest in the company and the role.
Contributing to your employer’s success is essential.
You desire a cultural fit.
Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:
“What are the key responsibilities of this position?”
Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”
“What does a typical day look like?”
Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.
“How would you describe the company culture?”
Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”
Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.
“What opportunities are there for professional development?”
When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.
Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.
Here are my four go-to questions—I have many more—to accomplish this:
“Describe your management style. How will you manage me?”
This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.
“What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”
This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”
“When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”
Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.
“If I wanted to sell you on an idea or suggestion, what do you need to know?”
Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.
Other questions I’ve asked:
“What keeps you up at night?”
“If you were to leave this company, who would follow?”
“How do you handle an employee making a mistake?”
“If you were to give a Ted Talk, what topic would you talk about?”
“What are three highly valued skills at [company] that I should master to advance?”
“What are the informal expectations of the role?”
“What is one misconception people have about you [or the company]?”
Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.
The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.
Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.
Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.
On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2024.
CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.
The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.
Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.
Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.
Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.
On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.
This report by The Canadian Press was first published Oct. 31, 2024.
