Loading ...Among major North American gold miners, Newmont Kinross and Yamana stand to benefit most from cheap oil, Cowen and Company analysts says.
In a recent note to clients analysts Adam Graf and Misha Levental dig into how falling oil prices will affect the earnings of Barrick, Goldcorp, Newmont, Kinross, Agnico Eagle and Yamana Gold.
Broadly speaking they conclude those more relient on open pit operations will benefit most.
And more specifically, they highlight Newmont Mining, Kinross and Yamana.
“By our estimates, for NEM, KGC, and AUY, every $10/bbl decrease in oil price should lower operating costs by $28/oz, $38/oz, and over $23/oz, respectively,” Graf and Levental write. “Earnings in 2015 would be positively impacted by $0.16/sh, $0.06/sh, and $0.03/sh, respectively.”
Less affected are Goldcorp, Barrick and Agnico Eagle.
more http://www.mineweb.com/cheap-oil-gold-miners-set-profit/