Gold Miner Earnings: This One Really Matters

Here comes the generalist money

When a small or mid-sized gold miner reports good earnings, it matters to its shareholders and maybe to would-be shareholders who are looking for an entry point. But normal (i.e., non-gold-bug) investors probably won’t notice.

There are, however, a handful of gold miners whose results resonate beyond the precious metals world. These are the stocks that a financial advisor reaches for when a client says, “Buy me one of those gold stocks my brother-in-law keeps talking about.”

When such a “major” reports good numbers, generalist investors who own it see the results and tell their advisor, “More like that, please.” The advisor then moves down the mining food chain (or laterally into royalty/streamers or miner ETFs). This spreads the generalist money around more broadly, exposing more investors to good earnings reports, and so on until miners of every kind are rocking. That’s the bull market we’ve been waiting for.

One of those bellwether miners just released earnings that are guaranteed to generate some buzz. Let’s dig in.