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Gold Glitters On Stagflation Tailwinds: Newmont Soars 13% In Biggest Gain Post-Covid, Leads Mining Sector Surge
Gold Glitters On Stagflation Tailwinds: Newmont Soars 13% In Biggest Gain Post-Covid, Leads Mining Sector Surge
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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 2020Newmont Sharply Beats Estimates, Declares First Quarter DividendNewmont 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 TodayGold Miners Rally In Response To Newmont’s ResultsNewmont’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 Mini...