Gold miners will be looking to repeat, if not beat, massive success enjoyed last year again in 2010 and according to gold analysts they’ll likely be able to do it. Bullion-watcher John Ing of Maison Placements Canada Inc. said miners can expect another boost in 2010 as gold prices are on track to surge past records reached in 2009 and demand picks up. “There’s no question” gold prices will surpass all-time highs ($1,226.10 an ounce) reached in last three months of 2009, Ing said. Match that with increases in global demand and falling production in some regions and it’s a perfect storm for profits. Demand, which fell 11% last year on weaker industrial and jewelry use, will rise in 2010 mainly from exchange-traded funds and central banks who for the first time in 20 years are buyers of gold, Ing said. The World Gold Council holds a similar view to Ing’s. Gold has become a mainstay asset class, especially among pension funds, council Chief Executive Aram Shishmanian told Reuters on Wednesday. Toronto-based miners Iamgold Corp., Agnico-Eagle Mines Ltd., and South America Gold and Copper Company Ltd. kicked off this week’s run of gold earning reports. Each reported higher revenues and high hopes for 2010. Revenue at Iamgold rose 27% to $265.3 million in the fourth quarter, the company said Wednesday. The company narrowed its quarterly profit loss down to $47.4 million, or 13 cents per share, from a loss of $96.4 million, or 33 cents per share, during the same quarter last year. Both this and year-ago quarters were hit by impairment charges which led to net losses. For 2009 as a whole, Iamgold reported adjusted net earnings jumped 97% to $212.2 million, or 60 cents per share, driven mainly by higher gold prices. Agnico-Eagle more than doubled its fourth-quarter profit with net income of $47.9 million, or 31 cents per share. For the full 2009 year, the company saw net income rise to $86.5 million, or 55 cents per share, up from $73.2 million, or 51 cents per share in 2008. Kinross Gold Corp. is expected to detail plans for another solid year ahead during a conference call slated for Thursday. South America Gold and Copper posted a more than $1.02 million fall in first quarter profits Tuesday, compared to a $401,000 loss the same period last year. But the quarterly shortfall was related to development and expansion costs at the company’s Chilean operations, which are expected to result in increased production of gold/copper ore in the near future, the company said. The company saw revenues rise to $2.16 million, up from $1.82 million one year earlier. Industry giants Barrick Gold and Goldcorp are both expected to nearly double underlying profits in their upcoming results, according to analysts. Ing expects the trend toward safe haven metals to continue based on the volatile debt positions of large economies. America’s debt resolution strategy has not yet been outlined and the greenback remains suspect, he said. There will be less gold coming into the market too as mines get deeper and labour costs go up, Ing said. All this bodes well for Toronto’s commodity-heavy stock exchange going forward. Gold helped nudge the S&P/TSX higher Wednesday and was quoted at $1,168 an ounce bid and $1,169 an ounce ask during mid-morning trading by Travelex Canada Ltd.

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