Analysts Reiterate Bullish Outlook on Gold Miners

Following third quarter earnings reports from several of the world’s largest gold mining companies, multiple research analysts reiterated their positive stances on their stocks.

This morning, Eldorado Gold (EGO) reported earnings per share of $0.11 and affirmed its full-year production guidance of 660,000 ounces at cash operating costs of $465 per ounce. Scotia Capital analyst Tanya Jakusconek noted in a report to clients that Eldorado beat her estimate of $0.10 per share due to higher than expected revenue.

Jakusconek also reiterated her Sector Outperform rating and $20.00 price target on EGO – which nonetheless declined alongside other gold stocks on Friday by $0.23, or 1.6%, to $13.97  per share.

Yesterday, Goldcorp (GG) reported adjusted earnings per share of $0.54, which was well above the $0.41 estimate of TD Securities analyst Greg Barnes.  The Canadian-based gold producer also re-affirmed its 2012 guidance at 2.35-2.45 million ounces at cash costs between $310 and $340 per ounce.

This morning, Barnes reiterated his Buy rating and $60.00 target on GG, which bucked the trend of lower gold stocks by rising $0.11, or 0.3%, to $43.93 per share.

(For more analysis and commentary on earnings from Eldorado, Goldcorp and many other gold miners, visit GoldAlert Pro at http://pro.goldalert.com)

As for the sector as a whole, the Market Vectors Gold Miners ETF (GDX) gave up an earlier modest gain alongside the broader equity markets and traded down by $0.29, or 0.6%, at $51.30 per share this afternoon.