South Africa-based Gold Fields Ltd. (NYSE:GFI) and US-based Newmont Mining (NYSE:NEM) both reported quarterly earnings before the market opened this morning.
Newmont beat EPS estimates by a penny and missed revenue estimates by about $60 million. Gold Fields did a bit worse: it missed EPS estimates of $0.05, reporting just $0.01, and missed revenue estimates of $745.66 million, hitting $740 million.
Newmont is sticking to its 2008 guidance for annual gold sales between5.1 and 5.4 million ounces. Third quarter average realized prices were$865/ounce. Costs are expected to fall from $480/ounce to$425-$450/ounce.
Gold Fields got a new CEO in September, and he set a goal to reduce thecompany’s all-in costs[http://www.247wallst.com/2008/09/gold-fields-und.html]. This quarterdidn’t do it: all-in costs rose to more than $909/ounce. Productiondeclines and higher costs were responsible.
Neither Newmont nor Gold Fields did anything to boost their stock prices, both of which are near 52-week lows.
October 29, 2008