Gold Stocks Recover After Early Losses

Several gold stocks were in red after some miners reported tepid results for the fourth quarter, a period when prices for the yellow metal hit rock bottom and hurt the top line for the miners.

Shares of Newmont Mining Corp NEM were down as much as 7 percent after the miner reported lower-than-expected profit for the quarter. As of Thursday afternoon however, they were up 1.17 percent.

Newmont Mining posted a fourth quarter loss of $254 million, or 50 cents a share. Excluding one-time items, the company earned 4 cents a share, missing the consensus estimate of 12 cents a share.

Revenue totaled $1.82 billion for the quarter, in line with Wall Street's expectations for the period. Newmont Mining said it produced 1.3 million ounces of gold this past quarter.

The company has managed to offset lower metal prices via higher production at Batu Hijau mine and the addition of Cripple Creek & Victor. The company sees gold costs at $900 to $960 per ounce in 2016 and between $850 and $950 per ounce in 2017.

Gold Fields, Harmony And Others Moving Too

In a separate development, Gold Fields Limited (ADR) GFI fell as much as 12 percent after it announced normalized earnings of $15 million for the quarter compared $17 million a year-ago. However, net losses attributable to our shareholders came in at $258 versus net losses of $26 million in the same period last year.

Other miners such as Harmony Gold Mining Co. (ADR) HMY were down 2 percent, while AngloGold Ashanti Limited (ADR) AU was up 3 percent.

But, the recent rebound in the gold prices has boosted the entire mining sector. Spot gold prices were up 1.28 percent at $1,223.97 per ounce.

A volatile stock market and a strong dollar also benefited the industry. Investors tend to turn to gold when stock markets are volatile and the dollar's strength against major gold producing nations such as South Africa, Australia and Canada have provided a fillip to the sector.