Dahlman Rose Comments On Gammon Gold 4Q10 EPS

According to Dahlman Rose, Gammon Gold's GRS recommencement of El Cubo should drive increased production. Dahlman Rose reported that Gammon Gold reported 4Q10 EPS of $0.17, better than its projected EPS of $0.15, and the consensus of $0.13. “Slightly lower production/sales vs our estimates were more than offset by higher gold and silver price realizations. During 4Q10 only Ocampo was in operation as El Cubo remained closed due to a labor strike that has now been resolved. In 4Q10 Gammon produced 51.2MM oz Au Eq, vs our forecast of 56.3MM oz, cash cost for the same period was $427/oz Au Eq vs our expectation of $410/oz Au Eq. In FY2010 Au Eq production was 204.1MM oz, on a consolidated basis, vs our expectation of 199.2MM oz.” Gammon Gold closed yesterday at $10.08.