The major gold miners reported outstanding Q3 results. Their collective gold production not only rebounded sharply from Q2’s lockdowns, but even grew from the comparable prior-year quarter.
That was better performance than global gold miners as a whole. Yet production costs did rise on ongoing COVID-19 mitigation measures and lower ore grades, eroding some potential earnings growth.
But with record-high average gold prices, the major gold miners’ profits still rocketed higher in both unit and bottom-line terms. Their collective earnings from normal operations have never been stronger.The major gold miners’ stocks have been grinding lower on balance for a few months now in a healthy correction. This necessary rebalancing is achieving its mission of dampening enthusiasm, paving the way for this contrarian sector’s next bullish push. Rebounding from governments’ COVID-19 lockdowns, the gold miners reported strong operating and financial results last quarter that fully justify more bull-market gains.The leading and dominant […]
November 14, 2020 (updated November 14, 2020) Published by StockMan