Agnico-Eagle, Goldcorp Report Strong Earnings, GDX Surges 3.3%

Two of the world’s largest gold mining companies reported third quarter earnings results  that came in well ahead of analysts’ expectations.

Agnico-Eagle Mines (AEM.TSX, NYSE: AEM) announced quarterly earnings per share of $0.62, handidly beating the $0.40 consensus estimate among Wall Street analysts.  The Company also raised its full-year gold production forecast for the second time this year, to 1,025,000 ounces at cash costs of $660 per ounce from 975,000 ounces at $690 per ounce.

Dundee Securities analyst Ron Stewart characterized Agnico-Eagle’s results as “exceptional” and reiterated his Buy rating and C$70.00 price target.  In mid-day trading, AEM climbed $3.49, or 6.8%, to $55.13 per share.

Goldcorp (GG) reported adjusted earnings per share of $0.54, exceeding the $0.46 level analysts were expecting. Scotia Capital analyst Tanya Jakusconek, who reiterated her Sector Outperform rating and $57.00 price target on GG, noted that the earnings beat “was mainly due better production and sales and realized pricing on all fronts.”

Shares of GG jumped $2.10, or 5.1%, to $43.17 in mid-day trading on Thursday.

(For more coverage of AEM’s and GG’s earnings, and to see how these two stocks rank versus their peers, visit GoldAlert Pro at http://pro.goldalert.com )

The rally in Agnico-Eagle and Goldcorp helped propel the Market Vectors Gold Miners ETF (GDX) – the largest gold stocks ETF – higher by as much as $1.67, or 3.3%, to $51.73.  The gain marked the GDX’s best day since September 13th and helped it recoup its losses from earlier this week.