GOLD STOCKS NEWS - Gold stocks advanced Thursday, with the Market Vectors Gold Miners ETF (GDX) rising $0.23, or 0.5%, to $47.62 per share on the back of strong earnings reports from Barrick Gold (ABX) and Agnico-Eagle Mines (AEM). The S&P/TSX Global Gold Index, a basket of the largest gold stocks in Canada, was higher by 0.4% at 344.09 in afternoon trading. Gold stocks were one of the few sectors in positive territory, as the GDX and S&P/TSX Global Gold Index climbed on the back of modestly higher gold futures. With today’s move higher, the GDX cut its monthly loss to 8.3% and extended its year-to-date gain to 3.2%.
Gold stocks in the news Thursday included:
Sunridge Gold (SGC.TSXV) reported drill results from its Adi-Rassi copper-gold prospect, part of its Asmara project in Eritrea, Africa. Highlights of the results included the intersection of 1.32 grams per tonne (g/t) gold and 0.84% copper over 84 meters (m), as well as 0.75 g/t gold and 0.54% copper over 25 meters. According to Sunridge Gold, the assay results indicate a new, potentially large copper and gold zone at Adi Rassi. Along with recently re-assayed core from drilling conducted at the site by Golden Star Resources in 1996, the new results demonstrate a strike length of over 500 meters.
The Canadian-based gold explorer conducted the five-hole drill program, totaling 1,243 meters, on behalf of its joint venture with Antofagasta Minerals, a London-based mining conglomerate with a market capitalization of $6.2 billion. Based on recent detailed geological mapping, as well as sampling and drilling results, Sunridge Gold stated that Adi Rassi is now considered to be a potentially large and continuous zone which contains significant gold and copper mineralization.
The company also noted the existence of many untested anomalies and drill targets within the Asmara Project, which create significant potential for additional discoveries. In afternoon trading SGC.TSXV, which controls deposits that hold in excess of $6.5 billion worth of in-situ metal vale at current spot prices, was one of the top performing gold stocks, surging 10.0% to C$0.44 per share.
Barrick Gold (ABX), the world’s largest gold producer and largest component of the GDX, announced record profits of $783 million - or $0.79 per share, ahead of analysts’ expectations of $0.72 per share. The gold miner also reiterated its full-year production forecast of 7.6-8.0 million ounces of gold at total cash costs of $425-$455 per ounce. Shares of ABX advanced 1.6% to $40.66 in afternoon trading.
Agnico-Eagle Mines (AEM) reported record quarterly gold production of 257,728 ounces, and reiterated its 2010 production guidance of 1.0-1.1 million ounces. Shares of AEM bucked the trend of higher gold stocks, however, falling 0.2% to $54.99 this afternoon.
Goldcorp (GG) - the second largest holding in the gold stocks ETF (GDX) - missed expectations with its quarterly report, posting earnings per share of $0.27 versus a consensus estimate of C$0.25. In afternoon trading GG was higher by 0.1% at $39.95 per share.
