Tuesday, April 27, 2010

Two Senior Producers Announce Leap In Earnings

The two are Newmont Mining and the recently spun off African Barrick. The former company's first-quarter profit came in ahead of analysts' estimates, leaping to $1.11 per share as compared with $0.40 in the same quarter a year ago. Ex-items, 1Q '10 earning were 83 cents; the consensus estimate was for 79 cents. Not only higher gold prices but also increased gold sales were responsible.

The latter saw its EBITDA shoot up to $100 million from last year's $41 million. Since it hasn't been listed that long, earnings per share weren't used for comparison purposes.

It looks like the senior producers are in the money zone, most likely because their costs have been held down. It doesn't seem to have been widely recognized as yet...

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