NEW YORK ( TheStreet)- Newmont Mining ( NEM), Silver Wheaton ( SLW) and Stillwater Mining ( SWC) are likely to surpass peers during this earnings season on the back of precious metals' rally during the second quarter, competitive advantages and bargaining opportunities.Newmont Mining Newmont Mining, the largest gold producer in the U.S. and second largest in the world, is scheduled to announce second-quarter results on July 28. Analysts polled by Bloomberg expect the company to post earnings of 89 cents per share compared to earnings of 35 cents per share, and $1.11 per share during the second quarter of 2009 and first quarter of 2010, respectively. Sales for the period are expected at $2.236 billion compared to $1.602 billion a year earlier, and $2.242 billion a quarter ago. Meanwhile, EBITDA for the quarter is expected to reach $1.135 billion from $648 million and $1.131 billion in the second quarter of 2009 and first quarter of 2010, respectively. Overall, gold stocks are likely to post higher earnings following the metal's bull run during the quarter -- prices were up 30% year-over-year and 8% quarter-over-quarter. High-grade mining at Batu Hijau will likely boost Newmont's earnings. In addition to mines in the U.S., Canada and the Asia-Pacific, the company is developing mines in Ghana, Indonesia, Mexico and Peru, where the influence of geopolitical factors is least. Most importantly, the company is among the lowest-cost gold producers of the world, with cash costs of $241 an ounce in the first quarter of 2010. The stock has nine buy, eight hold, and one sell ratings, as per TheStreet's Analyst ratings guide. Newmont and Barrick Gold ( ABX) are trading at lower price-to-earnings multiples of 15.0 and 13.6, respectively. Other major gold producers, Goldcorp ( GG), Kinross Gold ( KGC) and Agnico-Eagle Mines ( AEM), are trading at PE multiples of 34.6, 23.2 and 29.8, respectively. Silver Wheaton Silver Wheaton, top silver stock pick for the past few months, is scheduled to announce its second-quarter results on August 11. Analysts polled by Bloomberg expect the company to report earnings of 16 cents per share compared to earnings of 6 cents per share and 13 cents per share in the second quarter of 2009 and first quarter of 2010, respectively. Over the past two months, consensus earnings estimates of analysts for the second quarter increased from 14 cents to 16 cents a share.
Silver prices during the second quarter were up 33% year-over-year and 7% quarter-over-quarter. Management anticipates producing 22.2 million ounces of silver for 2010 and 38 million ounces by 2013, positioning the company among the world's top silver producers such as BHP Billiton ( BHP). The company has a portfolio of world-class assets, such as on Penasquito mine in Mexico and Barrick Gold's Pascua-Lama project in South America. Importantly, the company has 13 silver purchase agreements that allows it to purchase some or all of its production at low fixed costs from high-quality mines located in politically stable regions. These unique contracts will keep the company's silver production costs below the industry average. The stock has 10 buy, two hold, and no sell ratings, as per TheStreet's Analyst ratings guide. Stillwater Mining Silver Wheaton, top palladium stock pick for the past few months, is scheduled to announce its second-quarter results on August 5. Stillwater Mining will likely get a boost in the second quarter from the sharp increases in palladium and platinum prices, encouraging the company to increase capital spending to more sustainable levels. During the quarter, palladium prices were up 110% year-over-year and 13% quarter-over-quarter. Meanwhile, platinum prices were up 39% year-over-year and 5% quarter-over-quarter. Despite a recent decline in palladium prices and an anticipated decline in upcoming weeks, the long-term outlook for the metal remains strong as palladium started replacing platinum for auto catalyst applications and on the back of its growing supply deficit. According to TheStreet's Analyst ratings guide, the stock has one buy, no hold, and no sell ratings.