rI midday market report, May 9, 2012
TSX in positive territory, lead by Goldcorp
After shedding almost $4 per share over the first two days of this week, Goldcorp (TSX:G) jumped 4.10% to $35.81. The miner led the TSX into its first notable positive territory of the week on news that it had declared its fifth monthly dividend payment for 2012 of $0.045 per share.
Kinross (TSX:K) was also up $0.10 or 1.29% in intraday trading in spite of news yesterday that production slippage had led to first quarter decline in profit of approximately $145 million. Profit dropped to $105.7 million from $250.1 million for the same quarter a year ago.
Although the company expects to be on track for production targets this year, costs are estimated to range between $670 and $715 per ounce, up from an estimated $600 per ounce last year.
The bounce suggests that investors are taking the present sluggish market as a buying opportunity.
A video at the Globe & Mail also suggests this may be an opportunity for investors in gold, as that metal has taken a noteworthy slide lately as well.