Is Newmont Stock a Smart Buy Before Q1 Earnings Release?

Core Viewpoint - Newmont Corporation (NEM) is expected to report strong first-quarter 2025 results, benefiting from higher gold prices despite facing cost challenges [1][7]. Financial Performance - The Zacks Consensus Estimate for first-quarter earnings is 84 cents per share, reflecting a 52.7% year-over-year increase [2]. - First-quarter revenues are estimated at $4.54 billion, indicating a roughly 13$2,759 per ounce, representing a 32% year-over-year rise [9]. Production and Costs - NEM's consolidated attributable gold production is estimated at roughly 1.54 million ounces for the quarter [9]. - The company anticipates higher unit costs in the first quarter, with all-in sustaining costs (AISC) estimated at $1,691 per ounce, a 17.5% year-over-year increase [10]. Stock Performance and Valuation - NEM's shares have increased by 47% over the past year, underperforming the Zacks Mining – Gold industry's 58.3% rise but outperforming the S&P 500's 5.8% increase [11]. - The stock is currently trading at a forward 12-month earnings multiple of 14.14X, which is about 16.1% lower than the peer group average of 16.85X [14]. Growth Potential - Newmont is positioned for growth with a robust project portfolio that is expected to expand production capacity and extend mine life [16]. - The acquisition of Newcrest Mining Limited is anticipated to create significant value and synergies for shareholders [16]. - NEM's strong liquidity and cash flow generation capabilities support its growth projects and shareholder value [17]. Investment Outlook - Investing in NEM stock ahead of its earnings announcement is seen as a compelling opportunity due to its strong market position, financial health, and favorable gold market conditions [18].