Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: Glamis Gold, which has agreed to be acquired by Goldcorp Inc., suffered a dip in its share price despite a 12-fold leap in Q3 profit. The company's results were boosted by higher gold prices, enhanced production (particularly at the El Sauzal mine in Mexico, which was responsible for over half the company's gold output this quarter), and lower costs. Still, the quarter's 14-cent EPS figure was shy of analysts' expectation of 17 cents. Revenue surged to $91.8 million from $41.1 million as sales volume leaped to 144,113 ounces of gold from 91,625 ounces and average prices climbed to $609 an ounce from $446 a year earlier. The company generated cash flow of $38.4 million, up from $14.8 million, and cut the cash cost of production to $182 an ounce from $231. Tomorrow (Thursday), Glamis shareholders will vote on its proposed takeover by Goldcorp, which would create the world's third largest gold company in terms of market cap.
Related links: Glamis Gold Q3 2006 Earnings Call Transcript • Judge's Decision on Goldcorp Dismisses Shareholder Rights • Glamis/Goldcorp Merger - Keeping it in the Family • Goldcorp Deals to Acquire Glamis; Investors Unimpressed with Terms • Gold Stocks and the Flight to Safety • Goldcorp's McEwen Loses Bid for Vote on Glamis Deal [Bloomberg.com]
Potentially impacted stocks and ETFs: Glamis Gold Ltd. (GLG), Goldcorp Inc. (NYSE:GG) • Market Vectors Gold Miners ETF (NYSEARCA:GDX), streetTRACKS Gold (NYSEARCA:GLD)
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