China Gold International Resources walked into this earnings release on a tear, with the stock up about 48% over the past month and 36% over the past quarter. That kind of run up often bakes in big hopes. The latest numbers show trailing twelve month net profit margin at 41.3% and earnings growing very sharply over the last year, which is a powerful combination for any miner.

The key issue now is whether today’s price reaction reflects enthusiasm catching up to that profitability story, or investors stretching the valuation on emotion. The full earnings breakdown will help you judge whether this move looks grounded or overexcited.

Love the 41.3% net profit margin and sharp earnings growth at China Gold International Resources but…