Gold shares moved higher alongside COMEX gold futures on Friday, with the Market Vectors Gold Miners ETF (GDX) rising 0.7% to $46.59 in mid-day trading. The GDX climbed to an intra-day high of $47.11 this morning but later pared its gains. Still, the GDX remains on pace for only its third weekly advance in the past three months. The yellow metal inched higher by $4.20, or 0.3%, to $1,664.70 per ounce as the U.S. dollar dipped 0.2% against a basket of foreign currencies.
Two of the world’s largest gold producers were in the news this morning after announcing first quarter earnings results yesterday after the markets closed. Agnico-Eagle Mines (AEM.TSX, NYSE: AEM) reported adjusted earnings per share (EPS) of $0.53 – according to Dundee Securities analyst Paul Burchell – which came in well above his $0.41 per share estimate.
Additionally, Burchell noted that Agnico “performed exceptionally well operationally, producing 254,995 oz of gold at total cash costs of US$94/oz…We had anticipated 218,000 oz at total cash costs of US$697/oz.” Dundee Securities also reiterated its Buy rating and C$47.00 price target on AEM.TSX, which surged as much as 11.3% to C$39.24 per share this morning and later traded up by 8.5% at C$38.25.
Newmont Mining (NEM) reported first quarter adjusted EPS of $1.17 – according to Stifel Nicolaus analyst George Topping – above his estimate of $1.16 and the consensus forecast among Wall Street analysts of $1.15 per share. As for production, Topping noted that the 1.3 million ounces of gold was in-line with his forecast.
Stifel Nicolaus maintained its Hold rating on NEM – the firm does not issue price targets on Hold rated stocks – which earlier jumped 2.6% to an intra-day high of $48.97 per share before paring its gains to trade up by 1.0% at $48.20.
Other notable advancers in the gold sector included GDX components Barrick Gold (ABX) and Yamana Gold (AUY). ABX rose by 1.1% to $40.39 and AUY by 1.1% to $14.75 per share in mid-day trading.