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Highlights:
- Sibanye-Stillwater (NYSE:SBSW) posted adjusted EBITDA of US$898 million in Q1 2022.
- Coeur Mining Inc. (NYSE:CDE) reported Q1 FY22 revenue of US$188.4 million in May.
- Inflationary pressures have weighed on the quarterly results this year, said CDE.
When the market is volatile or bearish, selloffs can take place as investors run for cover to protect their investment. As prices of other shares plunge, investors often stack up gold stocks to bring an equilibrium to their portfolios.
Generally, gold prices shoot up when the market goes down. However, this year has been different as gold has failed to perform in the broader market. The fastest inflation in decades and the Fed Reserve’s steep interest rate hikes have also triggered the fall of gold prices to as low as US$1,712.55 an ounce as of July 26. The last closing price of gold futures was US$1,764.00 per ounce on July 29, 2022.
Here, we look at two gold stocks trading on NYSE and their performances during the market tumult.
Sibanye-Stillwater Ltd. (NYSE:SBSW)
Sibanye-Stillwater (NYSE:SBSW) is a multinational precious metal mining company with operations in the US and South Africa. The gold mining company has a dividend policy of returning at least 25 to 35 per cent of normalized profits to its shareholders.
Its stock price has declined by over 42 per cent in the last one year. SBSW shrank by over 20 per cent year-till-date (YTD).
For the first quarter of fiscal 2022, which ended on March 31, 2022, SBSW posted an adjusted EBITDA of US$898 million.
The company’s US (NYSE) stock price range per ADR (High/Low) was US$12.52 to US$20.32 in Q1 FY-22.
Coeur Mining Inc. (NYSE:CDE)
Coeur Mining Inc. (NYSE:CDE), headquartered in Chicago, Illinois, is an NYSE-listed precious metal mining company operating five mines across North America.
The company is expected to report its Q2 earnings results on August 3, 2022. Coeur has an annualized dividend rate of US$0.15.
In May, Coeur Mining reported first-quarter revenue of US$188.4 million, relative to US$202.1 million in the year-ago quarter.
Coeur Mining suffered a net income loss of US$7.7 million in the first quarter of 2022, compared to US$2.1 million in Q1 a year ago.
Its adjusted EBITDA in Q1 FY22 was US$41.5 versus US$65.9 in the first quarter of 2021.
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Bottom line
The falling prices of gold can impact a gold mining and producing company's earnings figures.
Coeur Mining said that the company is reeling under inflationary pressures, along with other companies in the industry. As a result, the consumable and labor costs are likely to have seen a spurt this year.
