Gold Miners Struggling with Costs, Gold Prices (NEM, ABX, GDX)
Lower prices for copper and gold hit Newmont Mining Corp. (NYSE:NEM) hard in the first quarter of 2009. Barrick Gold Corp. (NYSE: ABX) is also getting hit after its report, and all of this is acting to drag down even the Market Vectors Gold Miners ETF (NYSE: GDX).
Compared with the same period a year ago, Newmont’s EPS was cut in half, from $0.80 to $0.40. Excluding items, Newmont’s EPS came in at $0.44, better than estimates of $0.42. Newmont topped revenue expectations of $1.4 billion, reaching $1.552 billion in the quarter, which was down from $1.943 billion in the same period a year ago.
The company sold 1.27 million ounces of gold in the quarter for $906/ounce. The outlook for 2009 is for total gold sales of 5,200-5,500 ounces of gold with cost applicable to sales of $400-$440/ounce.
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Full Story: http://247wallst.com/2009/04/30/gold-miners-struggling-with-costs-gold-prices-nem-abx-gdx/
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