Eldorado must extract more value beyond the current mine plan to justify the price paid.
The company's CFO has resigned and switching independent auditors.
Fears around the concrete firm's exposure to Mexico have created a rare buying opportunity in the building materials sector.
Gold prices fell after the Fed announced it plans three rate increases next year.
We think the firm’s U.S. and Mexico exposure will drive significant increases in free cash flow.
Given our expectation of improving U.S. residential construction activity and rising Mexican infrastructure investment, the narrow-moat company will enjoy strong demand growth.
But it’s uncertain whether Trump’s infrastructure spending plan will be executed in its proposed form.
We continue to believe consumer demand means gold has a promising future, but there is still downside risk for the commodity and the miners in the near term.
The market overestimates the sustainability of recent commodity rallies, leaving the basic materials sector severely overvalued.
While gold equities are no longer cheap as a group, we still see upside in Goldcorp.
Valuations reflect investor expectations for gold prices that are well below our long-term forecast.
Falling gold prices weigh on results, but the firm is nearing its debt-reduction target.
The coal miner has the financial flexibility to cope with low natural gas prices.
Total non-residential-construction spending is likely to disappoint over the next decade, but growth in construction-heavy industries like manufacturing and highways bodes well for some companies.
Narrow-moat Martin Marietta stands to benefit from improving U.S. construction activity.
The miner is positioned to improve its production and cost profile over the next few years.
Despite record production in 2014, Kinross' production and costs are unlikely to improve.