Interesting Observations: Barrick / Kinross / AEM and Goldcorp and Newmont reported terrible earnings and lower
production this means less physical gold production
they also reported much lower reserves ALL OF THEM !..
However GDX gold miners index is green indicating buyers willing to pay more for less reserves.
Next we see surprise much lower retail sales
and we heard Yellen is just waiting for an excuse to print more money hence gold will break 1300 possibly today
SInce all miners missed earnings Badly when Hecla makes "surprise" profits I am expecting a big pop I have been luck enough to buy more at this ridiculous level.
Also there are many upgrades to come unless they miss I don't think that will happen after what Baker said..
Since spot Au/Ag hit a double bottom low price in the 4th Qtr, I expect HL to:
1. report a negative earnings per share 4Qtr
2. reduce economically viable reserve ozs (they will, like GG et al just did)
3. increase probable resources (shoving those old higher reserves down into the resources category, PLUS they always explore and find more)
4. report lower revs
5. report higher sales costs (higher energy, salaries, etc)
That said, I think the stock price continues to go up from here (with the usual downdraft bumps....but trending higher). It's likely an early entry point for those institutions that realize the in-ground resources didn't just vaporize...they are simply being re-categorized temporarily due to temporarily lower manipulated spot prices....and they know this is changing monthly, now in favor of the miner's future earnings performance.
The short ratio is high. I am thinking many will be forced to cover especially when they see gold break over 1300 per oz Hecla now a major gold producer so not so dependent on silver but silver will also rise big this year... The shorts have 9 million shares I think but there is only 5 days to cover it and if gold and silver rise they may be trapped producing massive squeeze....