Gold Glitters On Stagflation Tailwinds: Newmont Soars 13% In Biggest Post-Covid Gain, Leads Mining Sector Surge

Author: Piero Cingari | April 25, 2024 02:37pm

Newmont Corp. (NYSE:NEM), the world’s largest gold miner, saw its share price spike 13% on Thursday after the Denver-based company posted stronger-than-expected earnings.

This ignited a broad-based rally in the gold mining industry, despite the overall weak investor sentiment elsewhere.

Newmont is currently on track to achieve its best-performing session since April 2020, when the mining giant rallied following a major volatility event due to the Covid-19 pandemic.

Chart: Newmont Eyes Top-Performing Session Since April 2020

Newmont Sharply Beats Estimates, Declares First Quarter Dividend

• Newmont reported earnings per share (EPS) of $0.55 in Q1 2024, marking a 38% increase from the corresponding quarter of the previous year and surpassing Street’s consensus estimates of $0.36 by a significant 54%, according to Benzinga Pro platform.
• Revenue for the quarter amounted to $4.02 billion, indicating a 50% rise from Q1 2023 and surpassing forecasts of $3.66 billion by a noteworthy 10% margin.
• Newmont delivered $288 million in dividends to shareholders and declared a dividend of $0.25 per share of common stock for the first quarter of 2024.
• Newmont reported gold Costs Applicable to Sales (CAS) per ounce of $1,057 and gold All-In Sustaining Costs (AISC) per ounce of $1,439, both notably lower than the average realized gold price of $2,090 per ounce. This stark contrast indicates wide profit margins for the company.
• “Newmont delivered a strong first quarter operational performance, producing 2.2 million gold equivalent ounces and generating over $1.4 billion in cash from operations before working capital changes,” Tom Palmer, Newmont’s president and CEO, stated.

See Also: Why Gold Miner Newmont Shares Are Surging Today

Gold Miners Rally In Response To Newmont’s Results

Newmont’s remarkable Q1 earnings report catalyzed a significant rally in gold mining stocks, drawing investors to the industry in anticipation of potentially positive results from other players.

Additionally, miners showed a positive response to the rise in gold prices, with the precious metal gaining 0.7% to $2,330 per ounce, buoyed by escalating stagflationary worries triggered by the latest gross domestic product report.

The VanEck Gold Miners ETF (NYSE:GDX) rose 3.1%, while junior gold miners, as tracked by the VanEck Junior Gold Miners ETF (NYSE:GDXJ) rose 1.8%.

The top-performing North American gold miners on Thursday included:

Name	1-Day %	Market Cap
Newmont Corporation	13.06%	$ 50.54B
Buenaventura Mining Company Inc. (NYSE:BVN)	6.75%	$ 4.30B
DRDGOLD Limited (NYSE:DRD)	4.73%	$ 705.14м
AngloGold Ashanti plc (NYSE:AU)	4.29%	$ 9.57B
Coeur Mining, Inc. (NYSE:CDE)	3.52%	$ 1.88B
K92 Mining Inc. (NYSE:KNT)	2.69%	$ 1.31B
OceanaGold Corporation (NYSE:OGC)	2.31%	$ 1.61B
Calibre Mining Corp. (NYSE:CXB)	2.19%	$ 1.07B
Royal Gold, Inc. (NYSE:RGLD)	1.91%	$ 8.12B
Agnico Eagle Mines Limited (NYSE:AEM)	1.90%	$ 32.36B

Now Read: Equinox Gold Snaps Up Greenstone Gold Mines For $995M In ‘Incredibly Rare’ Deal

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Posted In: AEM AU BVN CDE CXB DRD GDX GDXJ KNT NEM OGC RGLD