Historically high gold prices are giving a real lift to precious metals miner Newmont (NEM 4.76%). On Wednesday, just after market close, the company published its latest set of quarterly figures, and on the back of the yellow metal’s popularity, they were golden.
Thursday saw something of a bull run on the company’s shares, as they closed the trading session nearly 5% higher in price. That compared well to the 2% rise of the S&P 500 index.
Major growth reported
Newmont reported that its revenue for the first quarter was $5.01 billion, which was nearly $1 billion higher than the $4.02 billion it booked in the same period of last year. Non-GAAP (adjusted) net income more than doubled to over $1.4 billion from the year-ago profit of $630 million.
Both metrics trounced analyst estimates. On average, pundits tracking Newmont were projecting only $4.57 billion on the top line and $0.88 for adjusted, per-share net income.
It was a busy quarter for the company, not least because it completed the divestment of several projects. Sales from assets sold so far this year top $2.5 billion. Partly because of these sell-offs, Newmont’s gold production fell by 19% year over year to slightly more than 1.5 million ounces. Management also cited other factors at certain sites for the drop, such as safety improvements.
2025 production guidance maintained
In its earnings release, Newmont said that it is on the path to meeting its existing gold production guidance for the entirety of 2025 of 5.9 million ounces. It also forecast several expenses, among which was exploration and advanced project costs of $525 million for the year. It has not provided revenue or profitability guidance.
If you’re a gold bug who believes the pretty metal can continue to shatter its all-time high prices, Newmont is a no-brainer stock to own. Personally, I feel the current rocky macroeconomic situation will stabilize, making such companies less attractive.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
