Should You Buy Newmont Stock Ahead of Q2 Earnings Report?

Newmont Corporation NEM is slated to report second-quarter 2025 results after the closing bell on July 24. The mining giant is expected to have benefited from higher gold prices in the second quarter amid cost headwinds.

The Zacks Consensus Estimate for second-quarter earnings has been revised upward in the past 60 days. The consensus estimate for earnings is pegged at $1.04 per share, suggesting a 44.4% year-over-year rise. The Zacks Consensus Estimate for second-quarter revenues currently stands at $4.62 billion, indicating a roughly 4.9% increase from the year-ago quarter.

NEM beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 32.4% on average.

Q2 Earnings Whispers for NEM Stock

Our proven model predicts an earnings beat for NEM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

NEM has an Earnings ESP of +4.42% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Shaping NEM’s Q2 Results

The impact of higher gold prices is expected to reflect on Newmont’s results in the to-be-reported quarter. Higher realized gold prices are likely to have driven its top line and margins.

Gold prices have racked up strong gains this year as worries over the global trade war have boosted safe-haven demand. Prices hit new highs driven by a surge in safe-haven demand amid the intense trade tussle, geopolitical tensions, a weak dollar and increased purchases by central banks. Prices of the yellow metal rocketed to a record high of $3,500 per ounce on April 22. While gold prices retreated from their April 2025 highs, they closed the second quarter above the $3,300 per ounce level, and are up roughly 29% so far this year.

The strength in gold prices is expected to reflect on NEM’s profitability in the second quarter.  Our estimate for the average realized prices of gold for NEM stands at $2,953 per ounce, which indicates a 25.8% year-over-year rise.

Newmont’s second-quarter performance is also likely to have been supported by continued strong performance from its managed Tier 1 portfolio. Newmont has divested non-core businesses as it shifts its strategic focus to Tier 1 assets.  NEM completed its non-core divestiture program in April 2025 with the sale of its Akyem operation in Ghana and its Porcupine operation in Canada.

Higher unit costs are likely to have impacted NEM’s performance in the quarter to be reported. Its all-in sustaining costs (AISC) were $1,651 per ounce for the first quarter, reflecting a roughly 13% sequential and 15% year-over-year increase. For the second quarter, NEM sees unit costs to be similar to or modestly higher than the first quarter due to higher sustaining capital spending. Sustaining capital is expected to peak in the second quarter due to the ramp-up of planned investments. Our estimate for AISC is $1,657 per ounce, suggesting a year-over-year rise of 6.1%.

Newmont Stock’s Price Performance and Valuation

Newmont’s shares have gained 27.2% in the past year, underperforming the Zacks Mining – Gold industry’s 33.4% increase but topping the S&P 500’s rise of 13.2%. Its gold mining peers, Barrick Mining Corporation B, Agnico Eagle Mines Limited AEM and Kinross Gold Corporation KGC have gained 14.8%, 62.6% and 76.3%, respectively, over the same period.

NEM’s One-year Price Performance

From a valuation standpoint, Newmont is currently trading at a forward 12-month earnings multiple of 12.32, a roughly 2.3% premium to the peer group average of 12.04X. NEM is trading at a premium to Barrick and Kinross Gold and a discount to Agnico Eagle. Both Newmont and Barrick currently have a Value Score of A. Kinross Gold has a Value Score of B, while Agnico Eagle has a Value Score of C.

NEM’s P/E F12M Vs. Industry, B, AEM and KGC

Investment Thesis for NEM Stock

Newmont is well-placed for growth with a robust portfolio of projects, which should expand production capacity and extend mine life, thereby driving revenues and profits. The acquisition of Newcrest Mining Limited has also created an industry-leading portfolio and is expected to deliver significant value for its shareholders and generate meaningful synergies. The asset streamlining rooted in Newmont’s objective to concentrate capital on high-return, long-life assets also underpins its long-term sustainability.

NEM has a strong liquidity position and generates substantial cash flows, which allows it to fund its growth projects, meet short-term debt obligations and drive shareholder value. As a leading gold producer, Newmont stands to benefit from higher gold prices, which should boost its profitability and drive cash flow generation.

Final Thoughts: Buy NEM Shares

Investment in NEM stock ahead of its earnings announcement presents a compelling opportunity due to its strong market position, solid financial health, a healthy growth trajectory, rising earnings estimates and strategic growth investments. With a positive earnings outlook, NEM looks poised to deliver attractive returns to investors, making it a prudent choice for those looking to capitalize on the still-favorable gold market conditions.

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This article originally published on Zacks Investment Research (zacks.com).

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