Gold Stocks Outperforming Bullion as Companies Continue to Improve Margins
01 Novembre 2012 - 1:20PM
Marketwired
After a solid start to the year, gold mining stocks have struggled
of late. The Market Vectors Gold Miners ETF (GDX) is down more than
4 percent over the last month, while the Market Vectors Junior Gold
Miners ETF (GDXJ) has crumbled more than 5 percent over the that
period. Five Star Equities examines the outlook for companies in
the Gold Industry and provides equity research on Brigus Gold Corp.
(NYSE: BRD) and Golden Star Resources Ltd. (NYSE: GSS) (TSX: GSC).
Access to the full company reports can be found at:
www.FiveStarEquities.com/BRD www.FiveStarEquities.com/GSS
Since the end of June until now gold stocks have begun to
outperform bullion. Over that time period the S&P/TSX Global
Gold Index has gained 12 percent, while gold futures in New York
have gained roughly 6.7 percent. Shares of major gold companies
such as Goldcorp Inc. and Agnico-Eagle Mines Ltd. have surged
recently as earnings have beat profit estimates as a result of
lower costs and higher cash flow.
"The gold shares are starting to outperform the gold price,"
David Christensen, CEO of ASA Gold and Precious Metals Ltd. "As the
companies begin to tighten their operating constraints and generate
more cash flow; we're seeing some of that turnaround in the
valuations in the industry."
Five Star Equities releases regular market updates on the Gold
Industry so investors can stay ahead of the crowd and make the best
investment decisions to maximize their returns. Take a few minutes
to register with us free at www.FiveStarEquities.com and get
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Brigus Gold is a high quality emerging mid-tier gold producer
with projects in Ontario and Saskatchewan, with approximately 1.86
million ounces of gold in reserves. Brigus recently announced $10
million in flow-through financing which will fully fund an
increased exploration program for 2013. The company is scheduled to
release its third quarter 2012 results on November 13, 2012.
Golden Star is a mid-tier gold mining company over a
quarter-century in age and total historical production of over two
million ounces of gold. During the first 9 months of the year the
Golden Star produced 246,248 ounces of gold, an increase of 7
percent from the year-ago period. The company is scheduled to
release third quarter 2012 results after market on November 7,
2012.
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