gold prices

WESTJET AIRLINES LTD., $25.00, symbol WJA on Toronto, reports that its load factor rose to a record 84.3% in the first quarter of 2013 from 83.0% a year earlier. Load factor is the percentage of available seats that are occupied by paying passengers. More important, the rise came despite the fact that the company increased its capacity by 6.0% to meet higher demand. Revenue passenger miles (the total number of paying passengers on each plane multiplied by the distance travelled in miles) rose 7.8% in the latest quarter. The company is also upgrading its newer planes to include a section with greater legroom and other benefits, such as priority boarding. As well, new partnerships with international airlines like Air France are helping WestJet attract more passengers....

Kirkland Lake Gold, $5.20, symbol KGI on Toronto (Shares outstanding: 70.2 million; Market cap: $362.7 million; www.klgold.com), has one producing asset—the Macassa gold mine in Kirkland Lake, Ontario. Macassa produced about 99,000 ounces of gold in 2012. The company is now undertaking a big expansion of the project, but it has experienced operational delays, mainly software and electronic issues that are reducing the mine’s hoisting capacity. It could take until 2014 to complete the expansion. Even so, Kirkland Lake Gold will likely maintain its output at 99,000 ounces this year, but that could rise to 174,000 ounces next year and more after that....

ENDEAVOUR SILVER $7.86 (Toronto symbol EDR: TSINetwork Rating: Speculative) (1-877-685-9775; www.edrsilver.com; Shares outstanding: 99.5 million; Market cap: $782.1 million; No dividends paid) operates the Guanacevi and Bolanitos silver/gold mines in Mexico, as well as the recently acquired El Cubo project.

In the three months ended December 31, 2012, Endeavour’s revenue jumped 281% from a year earlier, to $66.7 million (all amounts except share prices in U.S....

ENDEAVOUR SILVER $7.86 (Toronto symbol EDR: TSINetwork Rating: Speculative) (1-877-685-9775; www.edrsilver.com; Shares outstanding: 99.5 million; Market cap: $782.1 million; No dividends paid) operates the Guanacevi and Bolanitos silver/gold mines in Mexico, as well as the recently acquired El Cubo project.

In the three months ended December 31, 2012, Endeavour’s revenue jumped 281% from a year earlier, to $66.7 million (all amounts except share prices in U.S. dollars). The company hasn’t yet released its earnings or cash flow for the latest quarter.

The revenue gain was partly due to higher production and an increase in silver and gold prices. The company also held back on selling silver and gold a year ago in response to lower prices at that time.
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NEWMONT MINING $47.31 (New York symbol NEM; Shares outstanding: 491.2 million; Market cap: $23.2 billion; TSINetwork Rating: Average; Dividend yield: 3.0%; www.newmont.com) operates gold mines in the U.S., Canada, Mexico, Australia, New Zealand, Peru, Indonesia and Ghana.

The company’s worldwide diversification, plus its strong cash flow and balance sheet, make it our favourite gold stock for safety-conscious investors.

In the three months ended September 30, 2012, Newmont’s cash flow fell 20.4%, to $849 million, or $1.72 a share, from $1.1 billion, or $2.12 a share, a year earlier. Lower gold prices and higher costs were the main reason for the decline. The company holds cash of $1.5 billion, or $3.07 a share.

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NEWMONT MINING $47.31 (New York symbol NEM; Shares outstanding: 491.2 million; Market cap: $23.2 billion; TSINetwork Rating: Average; Dividend yield: 3.0%; www.newmont.com) operates gold mines in the U.S., Canada, Mexico, Australia, New Zealand, Peru, Indonesia and Ghana. The company’s worldwide diversification, plus its strong cash flow and balance sheet, make it our favourite gold stock for safety-conscious investors. In the three months ended September 30, 2012, Newmont’s cash flow fell 20.4%, to $849 million, or $1.72 a share, from $1.1 billion, or $2.12 a share, a year earlier. Lower gold prices and higher costs were the main reason for the decline. The company holds cash of $1.5 billion, or $3.07 a share....

IAMGOLD $11.98 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464- 9999; www.iamgold.com; Shares outstanding: 376.5 million; Market cap: $4.5 billion; Dividend yield: 2.1%) fell 23% after it reported cash flow of $0.30 a share in the three months ended September 30, 2012. That was down sharply from $0.46 a share a year earlier. Gold prices remained steady, but production fell 7.7%, to 205,000 ounces from 225,000 ounces. IAMGold gets 85% of its production from mines it owns and operates, but output continues to lag at its other mines. IAMGold’s longer-term prospects are strong—new mines will double its production within five years. It also holds cash of $1.1 billion. However, its short-term growth prospects have slowed....

IAMGOLD $11.98 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464- 9999; www.iamgold.com; Shares outstanding: 376.5 million; Market cap: $4.5 billion; Dividend yield: 2.1%) fell 23% after it reported cash flow of $0.30 a share in the three months ended September 30, 2012. That was down sharply from $0.46 a share a year earlier.

Gold prices remained steady, but production fell 7.7%, to 205,000 ounces from 225,000 ounces. IAMGold gets 85% of its production from mines it owns and operates, but output continues to lag at its other mines.

IAMGold’s longer-term prospects are strong—new mines will double its production within five years. It also holds cash of $1.1 billion. However, its short-term growth prospects have slowed.

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NEWMONT MINING CORP. $55 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 496.2 million; Market cap: $27.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.5%; TSINetwork Rating: Average; www.newmont.com) is the world’s second-largest gold miner by production, behind Barrick Gold Corp. (New York symbol ABX). The company has major mines in the U.S., Australia and Peru. It gets about 90% of its revenue from gold. The remaining 10% comes from copper, zinc and other metals. Newmont sells its gold at the market rate instead of through hedging contracts that lock in prices. This policy has helped it take full advantage of rising gold: its average realized gold price jumped 124.1%, from $697 an ounce in 2007 to $1,562 in 2011. Lack of hedges unleashed earnings...

CHIPOTLE MEXICAN GRILL, $336.40, symbol CMG on New York, offers higher-quality food and better decor and service than many fast-food chains, and charges slightly higher prices. Under its Food with Integrity initiative, it uses naturally raised meat wherever possible. All of Chipotle’s naturally raised meat comes from animals that are raised in a humane way, never given antibiotics or hormones, and fed a pure vegetarian diet. To expand its Food with Integrity offerings, Chipotle opened a ShopHouse Southeast Asian Kitchen restaurant in Washington, D.C.’s Georgetown neighbourhood in September 2011. The company now plans to open a second location in Georgetown later this year or in early 2013....