These positives continued today - and I am not just talking about the creeping forward gold price. Look how - post numbers - both Barrick Gold and Goldcorp have shrugged off mixed comments to (at the time of writing) be up 2.5-4% on the day. A share price rally off mixed news is a sign that a lot is priced in.
I am a shareholder in neither (Randgold remains my favoured large cap gold play - at the start of this month, it too responded very positively to its strong results, see link here) but as large, and well-known North American plays, they are important to sector sentiment.
But still the shares are up and - for the US Dollar quote - close to re-attaining the psychologically important US$20 level. A lot is priced in and sentiment is improving
And it is a similar story with Goldcorp, who posted a US$1bn+ Q4 loss due to impairment and a tax charge related to their operations in Mexico, as well as posting a 15% fall in reserves. As with Barrick Gold above, this was mainly due to lower gold price assumptions.
The better news was a 13-18% anticipated increase in gold production in 2014 year-on-year and this is being undertaken at an attractive cost level as all-in sustaining costs are expected to decrease to US$950-1000 per ounce of gold. Still, on balance, the news is mixed - but still the share has risen sharply year-to-date.