Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Thursday, May 10, 2007

Boom Times

#1<>Kinross marks 670% increase on bottom line Kinross Gold Corp. is in the "sweet spot" of a surging gold industry, chief executive officer Tye Burt says of the miner's 670-per-cent jump in first-quarter profit on a 24-per-cent rise in revenue. Profit for the three months ended March 31 totalled $68.5-million (U.S.). "We think we had an excellent quarter, and we're looking forward to the rest of the year," Mr. Burt said yesterday in a conference call.

Endeavour Reports Record Silver Production in Q1, 2007, Up 63%. Endeavour Silver Corp. (TSX:EDR)(AMEX:EXK) today reported record quarterly production totalling 490,986 oz silver and 1020 oz gold (541,986 oz Ag equivalents) in the 1st Quarter, 2007 from its Guanacevi Mines project located in Durango, Mexico.

Energy Metals surges ...

There wasn't news yesterday, and the stock took off like this. Is it a late response to the news last week that the company signed its first uranium sales agreement?

Global Gold Production Is Falling: Peru's Energy and Mines Ministry reported this morning that gold production in the country was down 14% in March at 15.1 million grams compared to the same period last year. Peruvian production has fallen 20%, 16% and 14% in the last several months ... South Africa’s gold production fell 9.5% in March 2007, compared with the previous month, and 10.8% compared with March last year ... and around the world last year, global mine production cash costs rose by $45/ounce, or 17%, year-on-year to $317/ounce, while global mine output fell by over 3% to 2,471.1 metric tonnes.

Naturally, falling global production puts upward pressure on gold prices. Indeed, if you can find mining companies that are increasing production, they make the short list of likely winners.

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