Q4 earnings I’ve been chatting with many vps of gold companies lately. I expect the street will get a Q4 earnings surprise to the upside for the pure gold (non base metal) producers. The Q4 average price of gold was above the Q3 average and the Q4 average price of oil was considerably lower than the Q3. Last year many gold companies reported that their operating cost was affected negatively because of the high price of oil ($70 plus). Additionally, those producing gold in Canada will benefit as the CDN dollar has depreciated considerably during Q4.
However, the most exciting event I’m looking forward to is the gold company headlines coming from the 2006 annual reports. Wall Street is driven by positive headlines. I expect the street will get a heavy dose of powerful positive news from the gold mining industry in about two to three months.
This fundamental event of increased earnings will correlate nicely with some of the explosive HUI and XAU technical analysis projections being reported.
Gold is real money