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Mining Stocks Q3 Earnings Lineup for Nov 10: AGI, SA, RIC

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The mining industry seems to have found its footing this year after a difficult 2015 that bore the brunt of a crash in the commodity prices. Particularly, silver and gold have been major movers this year, gaining 31% and 19% respectively so far owing to the slowdown in China, volatile equity markets due to Brexit, a dovish Fed and introduction of negative interest rates by several central banks (including Japan).

As per the Zacks Industry classification, the mining industry is grouped under the Basic Material sector – one of the 16 broad Zacks sectors. As of Nov 4, 85% of the companies in this sector that have reported so far have put up a 6.4% increase in earnings. Combining with the projected figures of the companies that are yet to report, the sector will log a growth of 4.2% in the quarter.

The 84.6% of the companies in the S&P 500 that have reported registered an earnings growth of 3.6%. Taking into consideration the estimates from the still-to-come 77 index members, total earnings in the quarter is now anticipated to go up 3% year over year on the back of 1.5% higher revenues. This compares favorably with the decline of 2.8% in the second quarter on flat revenues. Though the growth rate is meager, but compared to the declines for five consecutive quarters, this is definitely a positive sign. (Read more: Q3 Earnings Season: An Inflection Point).

Let’s see what’s in store for these miners that are set to report third-quarter numbers on Nov 10.

Alamos Gold, Inc. (AGI - Free Report) explores for mines, develops and produces gold deposits in the U.S. and Canada. Further, the company explores for silver and precious metals. The company will report results before the market opens.

The company had delivered a negative earnings surprise of 200% in the second quarter. Alamos Gold has an overall negative track record with an average negative earnings surprise of 103.22% over the trailing four quarters.

ALAMOS GOLD INC Price and EPS Surprise


The Zacks Consensus Estimate for the quarter stands at 2 cents, reflecting a 122% year-over-year growth. The company's core strategy in 2016 is to continue the ramp up of underground production at Young-Davidson as well as to expand and advance development of the La Yaqui and Cerro Pelon deposits at Mulatos. It made substantial progress toward achieving these objectives in the first half of 2016. The company anticipates higher production and lower costs to drive strong free cash flow growth in the second half of 2016 and is well on track to achieve its full-year guidance.

An earnings beat is unlikely this quarter for Alamos Gold given its Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). As it is, the Zacks #4 or 5 (Sell-rated stocks) should never be considered going into an earnings announcement. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Seabridge Gold, Inc. engages in the acquisition and exploration of gold properties located in North America. Additionally, it explores for copper and silver ores.

SEABRIDGE GOLD Price and EPS Surprise


Seabridge Gold’s Deep Kerr project has taken its place among the world’s largest gold copper deposits. For the remainder of 2016, the company will conduct a further exploration and drilling program at KSM and analysis of previous drilling including relogging to enhance the current resource models.

An earnings beat is unlikely this quarter for Seabridge Gold given its Earnings ESP of 0.00% and a Zacks Rank #4.

Richmont Mines Inc. engages in the mining, exploration and development of mining properties in Canada. It operates three gold mines – including the Island Gold mine in Ontario, and the Beaufor mine and Camflo Mill in Quebec. It is slated to report before the market opens.

The company delivered a negative earnings surprise of 40% last quarter. The company has a negative earnings surprise of 24.17% for the last four quarters.

RICHMONT MINES Price and EPS Surprise

The Zacks Consensus Estimate for the third quarter is at 2 cents, a 60% plunge year over year. The company recently reported third-quarter preliminary results wherein the company reported company-wide production of 18,856 ounces of gold for the quarter, which positions it to achieve its production guidance for the year.

An earnings beat is unlikely this quarter for Richmond Mines given its Earnings ESP of 0.00% and a Zacks Rank #4. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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