Investors and traders are closely watching Newmont Mining Corporation (NYSE: NEM) ahead of its earnings report scheduled for tomorrow. Market analysts expect the company to post earnings per share (EPS) of $1.06, representing a 47% year-on-year increase for the quarter.

At present, Newmont shares are trading around $61.78, reflecting a 31% gain over the past 12 months. However, there's a noticeable gap between share price growth and EPS expansion — with the share price lagging behind earnings growth by approximately 16%. This disparity could present an opportunity for a catch-up rally, particularly if earnings come in as strong as expected.

Market Outlook and Precious Metals Demand

While there has been a slight dip in industrial demand for metals, this may be offset by a rise in precious metal prices, particularly gold — a key driver for Newmont. If commodity prices continue to firm up, short-term upside potential for the stock could materialise.