Gold bulls are back in control when bullion prices soared earlier this week to the all-time high of $ 1,974.70, surpassing the previous record high in September 2011.
Comex, which is up nearly 25% this year, is trading at $ 1,955.50 at the time of writing, due to the increasingly uncertain economic outlook, as well as that of the Federal Reserve and the United States government. As a result, the yellow metal is approaching the unprecedented $ 2,000 mark.
Not surprisingly, gold prospectors outperformed the wider market this year. Gold-related ETFs are rising along with the precious metal itself, with the VanEck Vectors Gold Miners ETF (NYSE 🙂 since the March low, compared to gains of around 47% in the same period.
Below, we take a look at three prospectors who will report explosive earnings growth in the coming weeks due to the rise in gold prices.
1. Newmont Goldcorp Reports July 30 before Markets Open
Q2 EPS growth estimate: + 158% yoy
Estimated sales growth Q2: + 5% year-on-year
Newmont Goldcorp (NYSE 🙂 – the world's largest gold producer in terms of market value, output and reserves – has outperformed the broader market in recent months. Shares have skyrocketed by about 108% since the bear market slump in March, more than doubling the profit of the S&P 500 over the same period.
The stock, which reached its highest level since November 2011 at $ 70.30 at the beginning of the week, ended at $ 68.59 on Tuesday, earning the Greenwood Village, Colorado-based company a valuation of $ 55 billion .
Monthly chart of Newmont Goldcorp
Already last quarter, Newmont's revenues grew more than nine-fold compared to the previous year. The miner then reports the results for the opening bell on Thursday, July 30.
Consensus calls for earnings per share of $ 0.31 for the second quarter, which would represent 158% of earnings of $ 0.12 per share for the prior year period. Revenue is projected to grow 5% from the same period a year earlier to $ 2.38 billion, both due to the sharp rise in gold prices and higher production volumes.
In addition to the highs and lows, investors will be watching Newmont's update regarding the prospects for gold production for the rest of the year and beyond. The company recently forecast between 6.2 million and 6.7 million ounces per year in production through 2024.
2. Kirkland Lake Gold Reports 30 July for Markets Open
Q2 EPS growth estimate: + 44% yoy
Estimated sales growth Q2: + 105.5% year-on-year
Kirkland Lake Gold (NYSE 🙂 shares are up 181% since dropping to a recent low on March 16. On Monday, the stock reached a record high of $ 51.30, before settling for $ 50.64 yesterday, representing the Toronto-based company with a market capitalization of approximately $ 10.6 billion.
Kirkland Lake Gold Monthly
The second quarter results of Kirkland Lake, which are expected to open the US market on Thursday, July 30, are expected to have benefited from the sharp spike in gold prices.
Consensus calls for earnings per share of $ 0.72 for the second quarter, which would represent a 44% year-over-year increase. Revenue is expected to increase 105% from the same period a year earlier to $ 578.16 million.
As a promising sign, the Canadian miner announced July 2 production results for the second quarter, showing that production rose 54% from the same period last year to 329,770 ounces. For the first half of 2020, the company produced 660,634 grams, an increase of 48% over the first half of 2019.
Kirkland Lake reported that "gold sales reportedly totaled 341,390 ounces at an average realized price of $ 1,716 an ounce, compared to gold sales of 212,091 ounces at an average realized price of $ 1,320 per ounce in the same period a year earlier."
3. Barrick Gold Reports August 10 for Markets Open
Q2 EPS Growth Estimate: + 100 % yoy
Estimated sales growth in the second quarter: + 43% year-on-year
The shares of Barrick Gold (NYSE :), the second largest gold miner in the world, have had a tear lately and have risen by 133% since hitting mid-March. The stock, which rose to a seven-year high of $ 30.20 on Monday, closed at $ 29.59 last night, earning the Toronto-based miner a market cap of $ 52.6 billion.
Barrick Gold monthly chart
Barrick reported a first quarter profit and is scheduled to release its second quarter results on Monday, August 10 before opening.
Consensus estimates require a profit of $ 0.18 per share, which would indicate an annual EPS growth rate of 100%. Revenue is expected to increase by about 43% from the same period a year earlier to $ 2.94 billion, thanks to higher gold prices and increased production.
In addition to earnings per share and earnings, investors will also focus on Barrick's production forecast for the coming quarters. The Canadian company reduced its annual gold output guideline to 4.6-5.0 million ounces at the end of the first quarter, from 4.8-5.2 million previously as a result of a mine shutdown in Papua New Guinea.
Net debt will be another important measure to keep an eye on, as continued cost-cutting efforts are likely to increase operating results in the coming quarters.