Newmont beats quarterly profit estimates on higher gold production
The world's biggest gold miner benefited from robust production and easing costs.
Gold mining stocks are set to enjoy strong gains in 2013 following a tough year which saw them lag far behind surging bullion prices due to bloated costs.
Alex Letourneau of Kitco News reports that gold producers are making a concerted effort to slash the onerous costs which put heavy pressure on share prices during a period of stunning gains for bullion.
Industry insiders say that following numerous cases of severe cost overruns amongst the majors, such as Barrick Gold Corp’s (TSX/NYSE:ABX) Pascua-Lama project in Argentina, the prevailing trend amongst producers this year will be to dial down expenses.
Back in September Gold Fields (NYSE:GFI) CEO Nick Holland told an industry conference that producers had shot themselves in the foot by failing to tamp down swelling operating costs, with gold miners failing to achieve significant profits despite the boom in bullion prices.
Rob McEwen, CEO of McEwen Mining (TSX,NYSE:MUX) says the recent presidential election could also give a boost to both gold producers and bullion prices, as the market becomes disillusioned with the bold promises made by candidates during the election and turn to precious metals as a hedge against tough economic times.
