Core Viewpoint - Investors are evaluating Gold Fields (GFI) and Royal Gold (RGLD) for potential value opportunities in the Mining - Gold sector [1] Group 1: Zacks Rank and Earnings Outlook - Both GFI and RGLD currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates [3] - The Zacks Rank is designed to favor stocks with improving earnings outlooks, which applies to both companies [3] Group 2: Value Metrics - Value investors analyze various traditional figures to assess if a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - GFI has a forward P/E ratio of 14.65, while RGLD has a forward P/E of 29.70 [5] - GFI's PEG ratio is 0.55, indicating better value relative to its expected EPS growth rate compared to RGLD's PEG ratio of 1.22 [5] - GFI's P/B ratio is 3.07, compared to RGLD's P/B of 3.27, contributing to GFI's Value grade of A and RGLD's Value grade of D [6] - Based on these valuation figures, GFI is considered the superior value option at this time [6]

Core Viewpoint - Zacks emphasizes a ranking system focused on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum for investment opportunities [1] Value Investing - Value investing is a popular strategy for identifying undervalued stocks that have potential for profit [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category, where stocks with "A" grades and high Zacks Ranks are considered strong value stocks [3] Company Analysis: Gold Fields Limited (GFI) - Gold Fields Limited (GFI) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential [4] - GFI's Forward P/E ratio is 9.07, significantly lower than the industry average of 13.58, with a 52-week range of 6.76 to 14.68 and a median of 9.70 [4] - GFI's PEG ratio is 0.34, compared to the industry average of 0.46, with a 52-week range of 0.34 to 2.36 and a median of 0.81, suggesting it is undervalued [5] - The combination of GFI's valuation metrics and strong earnings outlook positions it as an impressive value stock [6]

Core Viewpoint - Investors in the Mining - Gold sector should consider Gold Fields (GFI) and Royal Gold (RGLD) as potential value opportunities, with GFI appearing to be the superior option based on valuation metrics [1][3]. Valuation Metrics - GFI has a forward P/E ratio of 15.35, while RGLD has a forward P/E of 30.34, indicating that GFI may be undervalued compared to RGLD [2]. - GFI's PEG ratio is 0.58, suggesting a favorable growth outlook relative to its price, whereas RGLD's PEG ratio is 1.25, indicating a less attractive growth valuation [2]. - GFI's P/B ratio is 3.21, compared to RGLD's P/B of 3.27, further supporting GFI's stronger valuation profile [3]. - GFI has a Value grade of A, while RGLD has a Value grade of D, highlighting GFI's superior valuation metrics [3].

Core Insights - The article emphasizes the importance of value investing as a successful strategy across various market conditions, highlighting the use of valuation metrics to identify strong stocks [1] - Zacks has developed a Style Scores system to categorize stocks, with a focus on the "Value" category for value investors [1] Company Analysis - Gold Fields Limited (GFI) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [2] - GFI's Forward P/E ratio is 9.60, significantly lower than the industry's average Forward P/E of 14.96, suggesting it may be undervalued [2] - Over the past 52 weeks, GFI's Forward P/E has fluctuated between a high of 14.68 and a low of 6.76, with a median of 9.82 [2] - The company has a PEG ratio of 0.36, which is also lower than the industry's average PEG of 0.49, further indicating potential undervaluation [2] - GFI's PEG ratio has ranged from a high of 2.36 to a low of 0.35 over the last 12 months, with a median of 1 [2] - These metrics suggest that Gold Fields Limited is likely undervalued and has a strong earnings outlook, making it an attractive value stock at present [2]

Core Viewpoint - Gold Fields Limited reported disappointing first-half results, leading to a nearly 10% decline in stock price and a downgrade in full-year production guidance [4][10][16]. Company Overview - Gold Fields is a South African gold mining company with operations in South Africa, Western Africa, Australia, Canada, and Peru [6]. Financial Performance - First-half managed production decreased by approximately 22.3% year-over-year to 954,000 ounces, while attributable production fell by about 22.4% to 918,000 ounces [10]. - All-in-sustaining costs rose by 43.86% to $1,745 per ounce, resulting in a $161 million year-over-year decrease in adjusted free cash flow from operations [10]. Production Challenges - Gruyere's production dropped by 20% year-over-year to 127,000 ounces due to severe weather, but production is expected to ramp up later in 2024 [12]. - St. Ives' production fell by 25% year-over-year to 139,000 ounces, attributed to lower grades, with a forecasted rebound of 49% half-over-half [12]. - South Deep mine's production decreased by 25% year-over-year to 117,000 ounces, primarily due to a fatality incident and operational challenges, but a 14% increase is anticipated half-over-half [13]. - Cerro Corona's production fell by 42% to 79,000 ounces, mainly due to weather-related issues [14]. Guidance Revision - The company revised its full-year production guidance to between 2 million and 2.15 million ounces, down from the previous forecast of 2.2-2.3 million ounces [16]. Market Conditions - Gold prices are expected to remain strong, driven by a potential U.S. interest rate pivot and heightened systematic risk, which may lead traders to use gold as a hedge [17]. - Gold Fields has a dividend policy of 40% of normalized earnings, with a four-year average yield of 2.89% [18]. Stock Analysis - The average sell-side analyst price target for Gold Fields is $17.44, indicating nearly 20% upside potential [19]. - The stock's relative strength index (RSI) has dropped to the 30 handle, suggesting it may be oversold [20]. Conclusion - Gold Fields' stock is viewed as an equal-weight asset, with potential entry points due to the recent slump and expected normalization of mining operations [21].

Today's sell-off may be giving gold investors a buying opportunity. Shares of South African gold mining stock Gold Fields (GFI -7.71%) slid 8% through 1:50 p.m. ET Friday after the company reported disappointing earnings results for the first half of 2024. That's not my word -- "disappointing." It's how CEO Mike Fraser himself described a first half in which gold production dropped 20%, leading to a 16% decline in net income to $0.43 per diluted share. Gold Fields' first-half earnings Gold retails for more ...

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Company Overview - Gold Fields Limited (GFI) has signed a deal to acquire Osisko Mining, aiming to strengthen its portfolio with high-quality, long-life assets [1] - The acquisition is expected to close in the fourth quarter of 2024, pending approvals from Osisko shareholders and other parties [1] Project Details - Upon approval, Gold Fields will gain complete ownership of the Windfall Project in Québec, Canada, which has been jointly managed since May 2023 [2] - The Windfall Project is estimated to produce 300,000 ounces of gold annually, with all-in-sustaining costs of $758 per ounce, making it the lowest-cost mine in Gold Fields' portfolio [3] Financial Aspects - The deal is valued at C$4.90 ($3.57) per share in an all-cash transaction [5] - As of March 31, 2024, Gold Fields had a net debt to EBITDA ratio of 0.51X, with $424 million in cash and $1.8 billion in undrawn debt facilities [5] - Total investment in the Windfall Project has exceeded C$1 billion ($0.73 billion), including over C$800 million ($583 million) invested by Osisko Mining prior to the joint venture [4] Industry Context - Gold Fields operates within the Mining - Gold industry, where peers like Agnico Eagle Mines Limited reported adjusted earnings of $1.07 per share, up from 65 cents year-over-year, and revenues of $2.08 billion, a nearly 21% increase [6] - Galiano Gold Inc. reported adjusted earnings of 3 cents per share, beating expectations, while Kinross Gold Corporation's adjusted earnings were in line with the prior year [7]

Group 1: Acquisition Details - Gold Fields announced the acquisition of Osisko Mining for $2.16 billion, paying $4.90 per share, which represents a 66.7% premium over Osisko's closing price [2][3] - The acquisition is seen as a move to diversify away from South Africa, where Gold Fields faces challenges in extracting precious metals [3] Group 2: Market Reaction - Following the acquisition announcement, Gold Fields' stock dropped approximately 5% in market value [1] - The current valuation of Gold Fields is at 3.08x trailing-year revenue, higher than the gold mining industry's average of 2.73x [2] Group 3: Economic Context - The recent collapse of the Japanese yen carry trade and potential changes in Federal Reserve monetary policy are influencing investor sentiment [4][5] - If the Federal Reserve adopts a dovish stance, it could make Gold Fields' stock more attractive, especially if gold prices rise [6] Group 4: Technical Analysis - GFI stock is currently near its 200-day moving average, which may indicate a potential bounce back [8] - The recent downturn has made options for GFI stock, such as the $15 call for January 2025, more appealing due to increased demand [7][9]

Michael McCrae Michael McCrae is leading Kitco's coverage of the mining sector. McCrae, who has both an MBA and CMA, knows how to build digital media properties. He was cofounder and publisher of MINING.com, an award-winning news site. Before coming to media, McCrae worked in IT and banking. Please reach out: mmccrae@kitco.com or (514) 670-1383. You can also follow him at @michaelmccrae. Share Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals I ...