It’s great time to be a gold miner

The summer of 2011 is a wonderful time to be a gold miner. The price burst above US$1,800 an ounce on Aug 10, but has since fallen back a bit. Don't worry. It will rise again given the background of global economic uncertainty. Meanwhile a look at the second quarter results for most Canadian gold producers reveals higher-than-ever revenues. And the sales figures from which Q2 reports are distilled, were based on gold prices up to the end of June in most cases. Gold was trading then at about US$1,505 following a month-long slump. The price in July and August is more than on an upward trend - $100 in July and $125 so far in August - and we expect even better numbers for the next quarter. The trick for producers is to translate their revenues into the best possible earnings. Here are some highlights from Q2 financial reports.

Company	Revenue	Earnings	Oz produced
Agnico-Eagle	US$434.9 M (+25%)	US$68.8 M (-31%)	239,328 (-7%)
AuRico	US$112.9 M (+98%)	US$56.1 M (+246%)	43,798 (55%)
Aurizon	C$59.0 M (+16%)	C$29.1 M (+45%)	41,418 (+7.5%)
Barrick	US$3.4 B (+30%)	US$1.2 B (+35%)	1,980,000 (+2%)
Goldcorp	US1.3 B (+62%)	US$420.0 M (+111%)	597,100 (+1%)
IamGold	US345.7 M (+75%)	US$74.5 M (+223%)	188,000 (+47%)
Kinross	US$987.8 M (+42%)	US$226.6 M (+103%)	676,245 (+26%)
Lake Shore	C$12.8 M (nil in Q2-10)	(loss) C$200,000	18,988 (n/a)
New Gold	US$171.6 M (+53%)	US$78.6 M (n/a)	88,500 (-2%)
Richmont	C$29.4 M (+42%)	C$5.0 M (+1,560%)	20,755 (+43%)
St Andrew	C$22.1 M (+20%)	(loss) C$1.2 M	15,197 (+29%)
Semafo	US$100.4 M (+15%)	US$32.9 M (+7%)	63,800 (+7%)

Canada's gold mines were a profitable group in Q2 2011 for the most part. The two who recorded net losses for the quarter both have expensive exploration and development commitments that probably account for the loss. The situation will be rosier as their new mines come into production. Since these Q2 results were posted, the price of gold has risen roughly 17%. Revenues and earnings may well be even greater next quarter.