Today in Gold: Newmont up 146%, Survey Says “Buy Gold”
MELBOURNE AUSTRALIA (Daily Reckoning): Newmont Mining (ASX: NEM) has announced that its net income for 2006 increased 146% to USD$791 million compared with USD$322 million for 2005.
The company said that despite industry wide challenges of declining reserve grades and escalating costs, it grew its reserves for the fifth straight year, adding 52.5 million ounces of gold to reserves during this period, while bringing three new mines into commercial production.
Barrick Gold (NYSE: ABX) has reported record net income of USD$1.51 billion and operating cash flow of USD$2.12 billion. The company's gold reserves as at December 31, 2006, based on gold prices of USD$475, were 123 million ounces, the highest in the industry.
Bloomberg News has conducted a survey of 27 traders, investors and analysts from Mumbai to Chicago, of which 20 have advised buying gold. Two respondents recommended selling, and five said prices will be little changed. Reports stated that gold prices may rally for the eighth consecutive week as mounting tensions over Iran's nuclear program spur investor demand for a haven.
Minebox reports that Rubicon Resources (ASX: RBR) has entered into an agreement with Xserv Pty Ltd to purchase Exploration License E25/326 at its major Yindarlgooda project, which is located 55 km east of Kalgoorlie, Western Australia. The Yindarlgooda project contains known gold mineralisation at the Queen Lapage and Taurus prospects.
Gold stocks were mixed at the end of last week. Newcrest Mining (ASX: NCM) was up 28 cents at 12.56pm to AUD$22.13 and Newmont Mining (NYSE: NEM) was up seven cents to AUD$6.01. Lihir Gold (ASX: LHG) was down four cents to AUD$3.47. The spot price of gold dropped USD$3.20 from Thursday's closing price to USD$674.25.
Canadian firm Committee Bay Resources (TSXv: CBR) has closed a C$15.1 financing that the company will use to fund the refurbishment of its Three Mile Hill processing plant in the Coolgardie district, Western Australia. The company and its joint venture partner have found indicated resources of 315,720 ounces of gold in the area.
The 79 Times: News on Gold and All That Glitters
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