Gold ETF's Try To Interpret Anglogold Earnings (AU, GLD, GDX)

With gold back well above the $900.00 mark, it seems that the SPDR Gold Shares (NYSE: GLD) and the Market Vectors Gold Miners ETF (NYSE: GDX) are trying to interpret a key gold earnings report.  South African gold miner AngloGold Ashanti Ltd. (NYSE:AU) reported first quarter 2009 profits of $150 million and EPS of $0.42, substantially better than fourth quarter 2008 loss of $17 million (EPS loss of -$0.05).

With only 1 real estimate seen in the U.S., this is one stock to watch but one that is hard to use for significant comparisons.   Production totaled 1.103 million ounces of gold, down 13% from the previous quarter, but inline with previous guidance. Cash costs were also inline, totaling $445/ounce. Revenue for the quarter was $689 million, way off analysts expectations of $1.05 billion and down 22% sequentially.

Today’s spot gold price is right around $925/ounce, up about 2% for the past week and nearly 5% for the past month. SPDR Gold Shares (NYSE:GLD) is up about 1.5% for the past week and Market Vectors Gold Miners ETF (NYSE:GDX) is up about 3% in the same period. The ETFs have done even better over the past month, with GLD up nearly 5% and GDX up more than 10%.

AngloGold is up about 1.5% in pre-market trading, to $37.12. The stock’s 52-week range is $13.37-$40.27, putting today’s early price within 8% of the company’s yearly high. Both ETFs are off slightly in pre-market trading.

Paul Ausick
May 15, 2009