Newmont Outsmarts Wall Street, Gold Investors Rejoice
On a delightfully adjusted note, Newmont proudly announced earnings of $1.43 per share. Analysts? They were just a tad less optimistic, estimating a measly $1.16. It’s almost like they were playing a game of “let’s aim low,” and Newmont decided to dunk like Michael Jordan.
In a spectacle worthy of a gold medal in the stock market Olympics, Newmont (NEM) saw its stock price leap nearly 2% in premarket trading on a balmy Friday. Why? Oh, just a routine overachievement in profit estimates and the launch of a shiny new share buyback program. Because nothing says confidence like buying back your own stock—as if it were an emotionally unstable ex.
Retail sentiment on Stocktwits flipped dramatically overnight, marching proudly from ‘neutral’ to ‘extremely bullish.’ One can only imagine the excitement in the online forums. “Did you see their earnings? Gold is back, baby!” And all it took was one quarterly report to turn them into gold-loving fanatics. Talk about crowd dynamics!
According to Fiscal.ai data—because why wouldn’t we trust a company with a name that sounds like it belongs to an accounting superhero—Newmont reported an average realized gold price of $3,320 per ounce during the second quarter. This compares to the more humble $2,347 from last year. If only everyone would experience a financial glow-up like that!
But wait, there’s more! The price rally skillfully masked a 4% decline in production compared to the prior quarter, which we can only assume was due to the gasp-worthy closure of non-core asset sales. But thankfully, increased production at the Yanacocha project in Peru gave them a glimmer of hope, proving that in mining, even a flicker can illuminate a dark tunnel.
Having already sold assets worth over $2.5 billion following their grand $17 billion acquisition of Australia’s Newcrest—a transaction that probably involved more paperwork than a wedding—Newmont is firmly clutching its crown as the world’s largest gold mining company. A real-life fairy tale, minus the glass slippers.
Newmont’s CEO, Tom Palmer, was quick to rain on the parade just a smidge, noting that costs are expected to rise in the second half of the year. But hey, let’s stick to the script here: they plan to keep everything within the previously forecasted range. Because when the chips are down, who needs optimism when you can have vague caution instead?
With Newmont’s stock soaring over 29.5% this year, it’s safe to say they’re having a pretty good time. Maybe too good of a time, really. And isn’t that what we all need—more companies wading in gold while we contemplate our next financial adventure—perhaps trading our life savings for a modern art installation that looks suspiciously like a melted clock?
Also See: Bloom Energy Stock Hits 3-Year High On Power Supply Agreement With Oracle — Because if companies can make headlines, why can’t we turn profits that are just as confusing as modern art?
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