Gold, silver prices soared as Trump won the US presidential election sparking a bout of extraordinary volatility that stirred financial markets around the world. Investors found safe haven in gold, triggering a spike in prices. Further, prices are riding high on the market perception that this may lead the Fed to hold off on the widely expected rate hike in December.
As it is, silver and gold have been major movers this year, gaining 35% and 19% 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. The curtains have fallen on the earnings of the sector with 100% of the S&P 500 participants having reported their numbers. The sector has put up a 4.7% growth in revenues following an 11.6% decline suffered in the second quarter.
The Basic Material sector is one of the 12 sectors that are in the growth territory this quarter. The 89% of the companies in the S&P 500 that have reported so far, registered an earnings growth of 4%. Taking into consideration the estimates from the still-to-come 55 index members, total earnings in the quarter is now anticipated to go up 3.3% year over year on the back of an 1.5% increase in 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 an encouraging sign. (Read more: Earnings Recession Ends in Q3).
Let’s see what’s in store for these miners that are set to report third-quarter numbers on Nov 11.
MAG Silver Corp. (MAG - Free Report) focuses on acquiring, exploring, and development of district scale projects located primarily in the Mexican Silver Belt. It explores for copper, gold, silver, lead and zinc deposits.
Last quarter, the company had delivered a negative earnings surprise of 100.00%. It has an average negative earnings surprise of 85.42% in the last four quarters.