GOLD STOCKS NEWS – Gold stocks rebounded from earlier losses on Thursday as the Market Vectors Gold Miners ETF (GDX) rose $0.17, or 0.3%, to $60.86 per share this afternoon. The bounce back in gold stocks and the GDX came as the spot price of gold pared its decline. The yellow metal tumbled from near $1,775 to as low as $1,734.60 this morning amid widespread liquidation in precious metals, but jumped back above $1,760 later in the day. Gold stocks in Canada inched higher in concert with the GDX, as the S&P/TSX Global Gold Index rose 0.2% to 422.62.
Many gold stocks were in the news this week Macquarie raised its price targets on a host of gold producers and explorers. Equity research analysts led by Tony Lesiak based the target increases on revisions to the firm’s gold price outlook. Macquarie recently lifted its 2012 estimate from $1,646 to $1,762 per ounce and its long-term (2017+) forecast from $1,714 to $1,837 per ounce.
A selection of the gold stocks covered in the firm’s report – each of which is a component of the GDX – follow:
Barrick Gold (ABX.TSX, NYSE: ABX) – target to C$84.00 from C$74.00, Outperform rating reiterated
Goldcorp (G.TSX, NYSE: GG) – target to C$71.00 from C$66.00, Outperform rating reiterated
Kinross Gold (K.TSX, NYSE: KGC) – target to C$22.50 from C$22.00, Outperform rating reiterated
Agnico-Eagle Mines (AEM.TSX, NYSE: AME) – target to C$62.00 from C$57.00, Neutral rating maintained
Eldorado Gold (ELD.TSX, NYSE: EGO) – target to C$20.00 from C$18.50, Underperform rating maintained
IAMGOLD (IMG.TSX, NYSE: IAG) – target to C$27.00 from C$25.50, Neutral rating maintained
Yamana Gold (YRI.TSX, NYSE: AUY) – target to C$18.00 from C$17.50, Neutral rating maintained
Another member of the gold stocks sector in the news this week was Gold Fields (GFI). The South African-based gold miner reported third quarter adjusted earnings of $0.42 per share and gold attributable equivalent production of 900,000 ounces. Scotia Capital analyst Tanya Jakusconek, in a note to clients, wrote that “Adjusted EPS was above our estimate of $0.36 and the consensus estimates range of $0.34 to $0.36 (few estimates). The beat relative to our estimate reflects a lower tax rate and lower minority interest costs.”
Jakusconek also maintained her Sector Perform rating and $20.00 price target on Gold Fields. In afternoon trading, GFI was lower by $0.06, or 0.4%, at $17.32 per share.
Notable gold stocks moving modestly higher on Thursday included GDX components AngloGold Ashanti (AU) and Newmont Mining (NEM) – with gains of 1.5% and 0.4%, respectively.
Claude Resources’ Adjusted Net Profit Rises 14%
