French president Sarkozy is reportedly in talks with Chinese president Jintao over securing cash from the country and the head of the European Financial Stability Fund, the 440 billion euro bailout fund which officials are hoping to leverage to 1 trillion euros, is headed to China and Japan in hopes of also locking in more aid.
Gold mining stocks
(KGC - Get Report)
was adding 2.56% to $14.85 while
(AUY - Get Report)
was rising 4.10% to $15.60. Other gold stocks,
(AEM - Get Report)
(EGO - Get Report)
were trading mixed at $42.95 and $19.06, respectively.
Two stocks to watch:
(ABX - Get Report)
(GG - Get Report)
, both of which reported solid third quarter earnings and shares were up just over 1.5%.
Barrick made $1.39 a share, which beat expectations by 11 cents, on 1.93 million ounces of gold production. The company reaffirmed its 2011 guidance of 7.6-7.8 million ounces, although the company lowered the high end of the estimate from 8 million ounces.
Net cash costs for 2011 rose from $290-$320 to $330-$350 an ounce due to lower copper prices, which Barrick uses to offset mining gold. Barrick also raised its quarterly dividend by 25%. The company is hoping to increase annual production to 9 million ounces in 5 years.
Goldcorp met expectations of making 57 cents a share on 571,500 ounces of gold sales and 592,100 of gold production. Goldcorp stumbled in the second quarter when it was forced to lower production guidance for 2011 due to floods and a forest fire at two of its mines and lower than expected production from Penasquito, one of the largest silver mines in the world.
CEO Chuck Jeannes reaffirmed current 2011 guidance of 2.50-2.55 million ounces at total cash cost of $180-$220 an ounce, including silver sales, and $500-$550 an ounce, just factoring in gold sales. Jeannes is adamant that Goldcorp will still grow 60% by 2015 bringing 6 mines into operation in 5 years. "Our five year plan taking us to 4 million ounces in 2015 remains fully intact."
Written by Alix Steel in
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