Gold Price Surge Fuels Profit Growth for Leading Miners Newmont and Barrick

Wednesday, 24 July 2024, 11:13

The world's largest gold miners, Newmont Corp and Barrick Gold Corp, are poised for significant profit increases due to a notable rally in gold prices. Analysts from TD Cowen predict a robust second quarter, citing a sharp rise in gold values and stable cost expectations. Additionally, the NYSE Arca Gold Miners Index has gained approximately 20% this year, outperforming the S&P 500's 16.5% rise, indicating a strong market for gold investments. This trend suggests optimistic future projections for the gold mining sector.
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Gold Price Surge Fuels Profit Growth for Leading Miners Newmont and Barrick

Newmont and Barrick Gold Anticipate Higher Quarterly Profits

The world’s leading gold miners, Newmont Corp and Barrick Gold Corp, are expected to achieve strong quarterly profit growth driven by a significant rally in the prices of gold.

Factors Contributing to Profit Growth

  • Gold Price Increase: The surge in gold prices has created favorable conditions for miners.
  • Cost Expectations: Analysts believe that costs are expected to remain relatively flat, enhancing profit margins.

Industry Performance

According to analysts at TD Cowen, this suggests a very strong second quarter. The NYSE Arca Gold Miners Index, which reflects the gold-mining industry, has experienced a growth of around 20% thus far this year.

Conclusion

With a substantial profit outlook due to the rising gold prices, Newmont and Barrick Gold are strategically positioned to capitalize on this momentum, indicating a positive forecast for the gold mining sector.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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