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8/14/13

Junior earnings

In the midst of a power cut at your humble scribe's humble abode (which has cramped his style somewhat this morning), a small observation about a clear change in attitude this junior earnings season. While 1q13 was all about junior producers returning generally lacklustre but not distastrous results and getting their share prices hammered into the ground as reward, 2q13 has been all about companies delivering results that are sometimes reasonable but mostly crappy. However, this time the shares haven't been pummelled which suggests that the market believes, on a fundy case-by-case level at least, that the bad news is already fully baked into the pies.

This also suggests, of course, that nice Mr/s Market thinks that the bottom is in for gold. If that's the case then good, if not there's a new overhang of potential selling if the PMs drop through $1,300/oz. That's the only caveat on offer, because aside that it's been a pretty optimistic 2q13 season. Which is good.