The earnings season is off to a strong start for gold miners - GG, AEM and AUY all reported...

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Thomas Azzara Comments (451)
 
A good quarter for ABX is coming. EPS in excess of $1.15 a share possible, with continued EPS improvement in coming quarters - assuming gold over $1,700 an ounce of course! I'm long ABX.
30 Oct 2012, 03:22 PM Reply Like

TDWelander Comments (368)
 
Do you have any stats to justify a gold company like Barrick selling copper? The margin on copper is so low compared to gold, there is no reason to be selling copper, just stock piling the semi finished product for future sale or future refining, or minimizing the costs of copper; if or when the copper margins increase, or a need for cash arises necessitating the sale of semi finished copper ores or copper. A detailed financial and process explanation of why Barrick is selling copper at all when the margins for gold are so much larger than copper, would be appreciated.
30 Oct 2012, 03:36 PM Reply Like

sikkabooyah Comments (407)
 
@TDWelander: I suppose that you could make the same argument vis-a-vis FCX, a company that also produces both copper and gold. Hey, it's a dirty job, but somebody's GOT to do it. Meanwhile, to paraphrase Garrett Morris on Saturday Night Live, "FCX... been berra berra good... to me."
30 Oct 2012, 08:33 PM Reply Like

TDWelander Comments (368)
 
FCX appears to be close 2nd to ABX; but still 2nd. If everything stays the same in the near future, which is not likely, diversifying to FCX appears to be a sound thought. Though the 71% institutional ownership of FCX makes me wince. If those institutional owners of FCX get tired of the FCX returns, or think they can do better elsewhere, you may be in trouble stock price wise with a substantial stock price drop from months to years. Of course I and no one I know want to see that scenario. I think it prudent you diversify, if you have not already. The FCX P/E at 12.69 VS ABX at 9.6 makes ABX more attractive for now. And you are certainly correct that FCX gold should over shadow FCX copper production for the time being. Is FCX sidelining or avoiding copper to maximize gold output? Does FCX offer quarterly conference calls with investors?
Copper vs gold production would be a good question and to report here.
31 Oct 2012, 11:46 AM Reply Like