increased earnings from 49 cents to 52 cents........too funny
not one hates you...you're just a douche.....correct so far but a douche nevertheless
Scotia Capital predicts most mining company gold reserves and resources to be generally lower for the upcoming year-end reserves estimates as “SC expects gold price assumptions be the lower than 2012 reserve estimates of about $1,350/oz.”
“This will likely result in lower 2014 production estimates (due to higher cost ounces being removed) but likely with better margins,” said precious metals analysts Tanya Jakusconek, Joanne van Ballegooie, and James Bender.
“In general, we also expect reserves will decline as higher cost ounces are removed, although we suspect that these will result in an overall improvement in grade,” the analysts forecast. “We expect companies with a greater proportion of open pit mines to be more sensitive to gold price than underground operations.”
Most gold mining companies are expected to release 2014 Life of Mine plans with fourth-quarter financials in late February/early March 2014. These companies are looking to use between $1,200-$1,350/oz average gold prices for both short and long-term plans.
With the expected $200-$300/oz downward revision of the gold price for 2014 LOM plans, Scotia anticipates lower production profiles for the group in 2014. “On the other hand, we expect better margins as the higher cost production will be eliminated,” the analysts said, adding they anticipate companies with more open-put production to be more susceptible to production revisions. Companies with more open pit gold production include senior gold producers Barrick and Newmont and mid-tier gold miner Iamgold.
The analysts also noted that Iamgold, Kinross and Buenaventura have the highest proportion of open-pit gold reserves at more than 90%.
“With the new reserves and LOM [Life of Mine] plans, we expect companies will review their carrying values (including goodwill), likely resulting in further impairments,” the analysts advised. Scotia Capital is forecasting potential pre-tax impairments ranging from US$7.6 billion-$8.5 billion.
In their analysis, Scotia suggested Barrick may declare additional impairments ranging from $3.4 billion-$3.5 billion both on the gold and copper side. Kinross could also see impairments at Chirano, ranging from $400 million to $600 million.
Scotia Capital also foresees a potential impairment for Newmont “relating to Yanacocha which reflects the short mine life remaining at the operation, in addition to processing of stockpiles. We do not value the sulphides or Cerro Quilish, hence we cannot recover $1.8B (estimated) in book value.”
Based on their research, the analysts see the lowest risk of impairment with Eldorado Gold, African Barrick Gold, AngloGold Ashanti, and Randgold Resources. Companies with underground operations which Scotia Capital identifies as having less sensitivity to lower gold prices include Goldcorp, Agnico-Eagle Mines, Eldorado Gold, Yamana Gold, AngloGold Ashanti, Gold Fields and Randgold Resources.
wrong....china russia are buying with both hands...comex phucked......you are on the wrong side of the fence
it's a joke......at least LEX is doing well on his loser piece of #$%$ stocks............Value investors can't catch a break
Good - Sen. Bon Corker: "I was pleasantly surprised, I think there's a gelling that's beginning to take place."
Bad - Sen. Susan Collins: "I don't want to give the impress that he endorsed it, but he indicated there were 'elements' with which he agreed."
Ugly - Sen John Cornyn: "...what could have been a productive conversation was instead another predictable lecture from the President that did not lay out a new path forward."
they sold the whole COMEX inventory and all were able to achieve was only 20 bucks ... well if this is the price of a victory, i am not sure how many such victories can they withstand ..
All the gold in the world is only worth 2 trillion....Benny has printed that in the last two years.....the "markets" are a joke
and all this nonsense....as it stands DOW is not even -3% from all-time record insane highs. This is the type of #$%$ where fools suddenly find their head has been lopped off.
higher gold prices......look you have a choice....buy #$%$ like LEX....or position yourself for China buying all available gold..........this is a 10 year process....not some dingo dog fad
i wonder why gold went up 12 of the last 13 years doesn't make sense ....why kill gold now