From Nasdaq, Inc.:

The mining industry within the Zacks Basic Materials sector is expected to see a 25.7% decline in earnings in the fourth quarter of 2023. Despite this, certain mining companies like Eldorado Gold Corporation, Hudbay Minerals Inc., Agnico Eagle Mines Limited and Kinross Gold Corporation are predicted to beat earnings estimates due to higher gold and copper prices and efforts to improve operating efficiency and reduce costs.

Gold prices hit an all-time high in early December 2023, surpassing $2,100 per ounce for the first time. The yellow metal’s strong performance in 2023 was driven by U.S. monetary policy easing, a weak U.S. dollar, and increased safe-haven buying due to the Israel-Hamas conflict. On the other hand, copper prices were impacted by softer demand from China, but still managed to experience a surge in the fourth quarter amid supply disruptions, a weaker dollar, and prospects of interest rate cuts.

Higher gold and copper prices are expected to have supported the performances of mining companies in the fourth quarter. However, inflationary pressure on input costs like labor, fuel, and electricity may lead to higher mining costs, even though many companies have taken steps to improve operating efficiency and reduce costs.

Despite the large number of players in the mining space, our research methodology has identified Eldorado Gold Corporation, Hudbay Minerals Inc., Agnico Eagle Mines Limited, and Kinross Gold Corporation as potential winners this earnings season. These companies have favorable Zacks Ranks and positive Zacks Earnings ESP, indicating high chances of delivering earnings surprises in their upcoming announcements.

Eldorado Gold Corporation, Hudbay Minerals Inc., Agnico Eagle Mines Limited and Kinross Gold Corporation expected to report on Feb 22, Feb 23, and Feb 15, and Feb 14 respectively. These companies have seen strong performances in terms of gold and copper production and are expected to gain from higher realized gold prices.



Read more: 4 Mining Stocks Poised to Outshine Q4 Earnings Estimates