The big question as gold miners earnings results begin to roll in next week - "Can miners cut costs fast enough to satisfy investors?"
JPMorgan's John Bridges expects an average reduction in all-in costs of about $100 per ounce this year, and notes the mid-point of recent Goldcorp (GG) guidance was $90. However, he adds, while some of the savings are sustainable, deferring things like truck and equipment purchases can't go on forever. He notes Kinross (KGC -0.2%) announced a 40% reduction in capex this year, but suggested reinvestment would be required at some point.
Ahead of results, the Gold Miners ETF (GDX +1.2%) continues its big 2014, now up 9.6% YTD.