Cowen also noted Goldcorp (NYSE: GG) and Yamana Gold (NYSE: AUY) would still be to generate positive earnings amid significant gold price retrenchment. Those stocks combine for 19% of GDX’s weight. Yamana’s all-in-cash costs are below $860 an ounce, indicating the company could still be profitable if gold trades only slightly above $900.
However, Cowen said Kinross Gold (NYSE: KGC), another recent dividend cutter, and Agnico-Eagle (NYSE: AEM) would suffer low or negative profitability even with a $100-$200 gold-price decline, according to Barron’s. Those stocks combine for 9% of GDX’s weight. Kinross is believed to have all-in-cash costs of around $1,040 per ounce.
Market Vectors Gold Miners ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GLD.