We’re getting 4q13 numbers from producers and…
Kinross results sucked
Barrick results kinda sucked
Primero results sucked
[Edit]: Missed Agnico Eagle, which also sucked
There’s a pattern, too. They’re all doing as expected or slightly better on top line revenues, but then comes extras on the costs line and profits simply vaporize, even before they take another round of write-down charges. And remember, these are the good operators! (or so they tell us). What do you think is going to happen to the crappy high cash cost miners out there when they reveal their bottom lines?
As for 1q14, face facts: $50/on gold and $1/oz on silver isn’t going to save these companies.
People, so far the miner rally has seen all boats rise, but that’s not going to be a theme of 2014. It’s been fun so far, with arguably the most fun being had by people who were bold enough to buy the real dogs of the sector and see them run hard, but at some point we’re going to see the cream rise and the crud fall back. For my money, that process starts today.