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Tuesday, August 10, 2010

Gammon (NYSE:GRS) Earnings Rise on Increased Gold Prices and Production

Higher gold prices continue to be the story for most gold miners during the earnings reporting season, and Gammon Gold (NYSE:GRS) (TSE:GAM) also had earnings increases from higher gold prices, and from higher production as well.

Earnings from the quarter rose to $11.4 million, or 8 cents a share, an increase over the $3.4 million, or 3 cents a share last year in the same period.

Revenue for the quarter increased from $57 million, a gain of 32 percent. That was driven by the average price of silver and gold for the quarter.

Gold price averaged $1,201 an ounce, while silver had an average price of $18.47 an ounce.

Gold production in the quarter increased to 52,506 gold equivalent ounces, in contrast to 50,814 ounces in the same quarter last year.

The company did take a big hit from the suspension of their El Cubo mine in Mexico, taking a net loss of $180.3 million, or $1.30 a share on that.

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