Tag Archives: Endeavour Silver

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AuRico Gold Earnings: An Early Look

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By Dan Caplinger, The Motley Fool

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Earnings season is just about over, with almost all companies already having reported their quarterly results. But there are still a few companies left to report, and AuRico Gold is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Gold miners have gone through a tough time lately, as slipping gold prices, higher production costs, and labor strife around the world have weighed on mining stocks. But can AuRico’s cost advantage allow it to buck the trend? Let’s take an early look at what’s been happening with AuRico Gold over the past quarter and what we’re likely to see in its quarterly report on Monday.

Stats on AuRico Gold

Analyst EPS Estimate

$0.05

Change From Year-Ago EPS

(67%)

Revenue Estimate

$71.3 million

Change From Year-Ago Revenue

(33%)

Earnings Beats in Past 4 Quarters

2

Source: Yahoo! Finance.

Will AuRico Gold glitter or tarnish this quarter?
Over the past few months, analysts have gotten a lot more pessimistic about AuRico Gold’s prospects. Consensus earnings-per-share estimates for the just-ended quarter have come down by $0.02, while full-year 2013 calls have come down by $0.13 per share, or 25% of where they were three months ago. The stock has followed suit, falling 13% since mid-December.

AuRico has had a disappointing track record with its mines lately. Last October, it added its once-flagship Ocampo mine in Mexico to the list of projects on which it has failed to reach its full potential, selling the mine for about $315 per ounce of gold reserves and including a couple of high-potential speculative properties into the mix. Meanwhile, Endeavour Silver scored a major coup by grabbing up AuRico’s El Cubo mine last year, giving Endeavour the inside track at its riches at AuRico’s expense.

In preliminary results it released in January, AuRico already gave some details on how tough an environment it has faced. Overall cash costs soared to $630-$650 in the fourth quarter, well above its full-year guidance of $483-$548. For 2013, the company said that it expects production to rise from 127,000 ounces in 2012 to 190,000-220,000 ounces this year. Yet it sees a range of all-in costs, a more accurate measure of production expenses than cash costs, of between $1,100 and $1,200. Rival Yamana Gold , by contrast, has all-in costs of around $800, showing how much of a competitive disadvantage AuRico has.

Yet some good news for shareholders came in February, when AuRico said it would start paying a dividend. Its anticipated $0.04 quarterly payout only amounts to a yield of 2.3%, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Great Panther Silver Earnings: An Early Look

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By Dan Caplinger, The Motley Fool

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Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Great Panther Silver is about to release its quarterly earnings. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Mining stocks have gotten crushed over the past year, and Great Panther Silver has been having to deal with the same headwinds as many other players in the silver-mining industry. Let’s take an early look at what’s been happening with Great Panther Silver over the past quarter and what we’re likely to see in its quarterly report on Wednesday.

Stats on Great Panther Silver

Analyst EPS Estimate

$0.02*

Year-Ago EPS

($0.01)*

Revenue Estimate

$17.32 million

Change From Year-Ago Revenue

1%

Source: S&P Capital IQ.
*Normalized.

Will Great Panther Silver shine brighter this quarter?
Great Panther doesn’t have a big analyst following, but the stock‘s recent plunge certainly shows that investors aren’t convinced about its future prospects. Shares have fallen another 17% since early December and are down more than 45% since this time last year.

Great Panther has staked its claim in the lucrative Guanajuato area of Mexico, where a number of other companies have also found promising silver plays. Endeavour Silver has two mines that directly adjoin holdings of Great Panther’s, while AuRico Gold owned assets in the area before selling them to Endeavour last year for $250 million.

Yet despite the potential of Guanajuato, Great Panther has faced some difficulties there. Back in November, the company cut its production estimates for the full 2012 year, citing variations in ore grades and high smelting and refining costs as a factor in raising its cash-cost estimate by $1.50 per ounce. Fortunately, by the time Great Panther released preliminary production results in January, its actual 2012 production came in at 2.38 million silver-equivalent ounces, toward the top of its revised range. Yet Great Panther‘s 2013 guidance didn’t show huge prospects for growth looking forward, with production seen growing just 1% to 5%.

In its quarterly report, watch Great Panther not just for its silver exposure but also with an eye toward gold production, which has been rising at a strong rate at Guanajuato. Unless the company can come up with some stronger growth projections, though, it’s hard to see investors getting too excited about Great Panther unless bullion prices start moving higher.

Looking for more commodities-based ideas? Download the free report “The Tiny Gold Stock Digging Up Massive Profits.” The Motley Fool’s analysts have uncovered a little-known gold miner they believe is …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

3 Stocks to Get on Your Watchlist

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By Sean Williams, The Motley Fool

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I follow quite a lot of companies, so the usefulness of a watchlist to me cannot be overstated. Without my watchlist, I’d be unable to keep up on my favorite sectors and see what’s really moving the market. Even worse, I’d be lost when the time came to choose which stock I’m buying or shorting next.

Today is Watchlist Wednesday, so I’m discussing three companies that have crossed my radar in the past week — and at what point I may consider taking action on these calls with my own money. Keep in mind that these aren’t concrete buy or sell recommendations, nor do I guarantee I’ll take action on the companies being discussed. What I can promise is that you can follow my real-life transactions through my profile and that I, like everyone else here at The Motley Fool, will continue to hold the integrity of our disclosure policy in the highest regard.

Skyworks Solutions
I freely admit to pounding the table on Skyworks Solutions every couple of months. But, given its dominance in power-amplifying modules and RF components in mobile devices, I don’t see how this company isn’t a staple on everyone’s watchlist.

Last month the RF supplier market (of which Skyworks is also a member) received quite the scare when Qualcomm unveiled its next-generation all-in-one RF360, which is capable of dealing with band fragmentation on the front-end and would make the current RF components mostly dead weight. This is terrible news for weaker-positioned RF suppliers like RF Micro Devices, which have been scrambling to produce 4G LTE-capable components. RF Micro, for instance, has been reducing its reliance on Nokia, but still counts quite a bit of revenue from 2G and 3G RF sales to the company. 

Skyworks, on the other hand, has a tight-knit relationship with Apple and that isn’t likely to change anytime soon. Skyworks’ most recent quarter — which saw it report revenue of $454 million, up 15% from the year-ago period, and EPS of $0.55 — handily surpassed analysts’ expectations. As icing on the cake, Skyworks ended the quarter with nearly $2 in cash and no debt. With ample R&D funds on hand and a bare-bones forward P/E of just 8, I feel Skyworks could be primed for a big move this year.

Endeavour Silver
Since making Endeavour a stock near a 52-week low worth buying in late January, it’s done nothing but make me look foolish and head lower. Endeavour’s problems are pretty simple to understand, with lower production at its newly purchased El Cubo mine and lower spot silver prices holding back its bottom-line profits. However, my opinion is that’s about to change in a big way.

Just last week Endeavour delivered its ninth straight increase in proven, probable, indicated, and inferred resources on the heels of its eighth straight year of rising production. Silver equivalent proven and probable reserves now sit at 34.2 million ounces, up 67% from …read more
Source: FULL ARTICLE at DailyFinance