Gold miners might be set for one of the most explosive earnings seasons in decades, as record bullion prices ran away from relatively stable operating costs. With gold having delivered the strongest annual performance since 1979, miners could make the headlines as they start reporting by mid-February.
“Despite the fact that the strategists on Wall Street and Bay Street are characteristically talking about $5,000 and $6,000 an ounce, the analysts are using $3,200 in their earnings forecasts,” veteran investor Rick Rule warned in a recent interview with Jay Martin.
The disconnect, Rule argues, leaves the market materially underestimating how strong miners’ earnings could be.
Timing The Surprise
Timing matters. In the United States, American-listed gold miners have up to 60 days after year-end to report fourth-quarter results, while Canadian-listed companies have up to 90 days. As a result, the …