Newmont Corp. NYSE:NEM, the world’s largest gold miner, saw its share price spike 13% on Thursday after the Denver-based company posted .
This ignited a broad-based rally in the gold mining industry, despite the overall
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 .
- 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 $2,330 per ounce, buoyed by escalating stagflationary worries triggered by the latest gross domestic product report.
The VanEck Gold Miners ETF AMEX:GDX rose 3.1%, while junior gold miners, as tracked by the VanEck Junior Gold Miners ETF AMEX:GDXJ rose 1.8%.
The top-performing North American gold miners on Thursday included:
Name1-Day %Market CapNewmont Corporation13.06%$ 50.54BBuenaventura Mining Company Inc. NYSE:BVN6.75%$ 4.30BDRDGOLD Limited NYSE:DRD4.73%$ 705.14мAngloGold Ashanti plc NYSE:AU4.29%$ 9.57BCoeur Mining, Inc. NYSE:CDE3.52%$ 1.88BK92 Mining Inc. (NYSE:KNT)2.69%$ 1.31BOceanaGold Corporation (NYSE:OGC)2.31%$ 1.61BCalibre Mining Corp. (NYSE:CXB)2.19%$ 1.07BRoyal Gold, Inc. NASDAQ:RGLD1.91%$ 8.12BAgnico Eagle Mines Limited NYSE:AEM1.90%$ 32.36BNow Read: Equinox Gold Snaps Up Greenstone Gold Mines For $995M In ‘Incredibly Rare’ Deal
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