Gold Miners Adapt To Mixed Environment (GFI, NEM)
October 29, 2008 by Douglas A. McIntyre
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.
Paul Ausick
October 29, 2008
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.