Gold Prices Hit Record Highs, Mining Stocks Poised for Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Source: Fool
- Gold Price Surge: Gold prices have surpassed $5,000 per ounce, reflecting market uncertainty and a weakening dollar, attracting investor interest in mining stocks despite high volatility.
- Newmont's Strong Performance: As the world's largest gold miner, Newmont reported gold production of 1.4 million ounces in Q3, down 28.5% year-over-year, yet achieved nearly $2,000 profit per ounce, driving revenue up nearly 20% to $5.5 billion.
- Agnico Eagle's Steady Growth: Agnico Eagle's net income rose 86% year-over-year to $1.06 billion in Q3, with a record gold production forecast of 3.5 million ounces for the year, demonstrating strong profitability in stable political environments.
- Optimistic Future Outlook: Despite potential risks from Ghana's increased mining taxes, both Newmont and Agnico Eagle are well-positioned for expansion with strong cash flows and low debt levels in a high gold price environment.
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Analyst Views on NEM
Wall Street analysts forecast NEM stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 120.700
Low
89.00
Averages
110.85
High
125.00
Current: 120.700
Low
89.00
Averages
110.85
High
125.00
About NEM
Newmont Corporation is a gold company and a producer of copper, zinc, lead, and silver with operations and/or assets in the Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea regions. The Company's operations include Brucejack, Red Chris, Penasquito, Merian, Cerro Negro, Yanacocha, Boddington, Tanami, Cadia, Lihir, Ahafo, and NGM. The Brucejack operation includes four mining leases and six core mineral claims which cover 8,169 acres (3,306 hectares) and 337 mineral claims covering 298,795 acres (120,918 hectares). The Red Chris operation includes five mining leases which cover 12,703 acres and 199 mineral claims, encompassing an area of 164,903 acres (66,734 hectares). Penasquito includes 20 mining concessions for operations comprising 113,231 acres (45,823 hectares) and 60 mining concessions for exploration of 107,456 acres (43,486 hectares). The Merian operation includes one right of exploitation encompassing an area of 41,687 acres (16,870 hectares).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Newmont Mining Surges After Exceeding Earnings Expectations
- Earnings Beat: Newmont Mining reported a 45.9% year-over-year revenue increase to $7.31 billion in Q1, with adjusted EPS soaring 132% to $2.90, significantly surpassing analyst expectations and demonstrating robust performance amid rising gold prices.
- Share Buyback Initiative: The company repurchased $2.4 billion in shares during the quarter and announced a new $6 billion buyback program, aimed at enhancing shareholder returns and reflecting management's confidence in the company's future prospects.
- Cost Reduction: Despite anticipating lower production this year due to weather and maintenance issues, Newmont achieved an all-in sustaining cost of $1,029 per ounce, well below the $4,900 per ounce realization price, showcasing effective cost management.
- Market Outlook Caution: Management warned that sustaining costs per ounce may rise due to the closure of the Strait of Hormuz, although Newmont trades at only 13 times this year's earnings, indicating market sensitivity to gold prices.
See More
Newmont Reports Strong Q1 Earnings Beat
- Significant Earnings Growth: Newmont's Q1 revenue surged 45.9% to $7.31 billion, with adjusted earnings per share skyrocketing 132% to $2.90, both figures exceeding analyst expectations and reflecting the company's strong position in the gold market.
- Accelerated Share Buybacks: Management ramped up share repurchases amid stock price declines due to the Iran war, having repurchased $2.4 billion in shares since the last earnings release, alongside a newly authorized $6 billion buyback program aimed at enhancing shareholder returns.
- Effective Cost Control: While sustaining costs are expected to rise due to increasing oil and gas prices, Newmont's all-in sustaining costs dropped to $1,029 per ounce, significantly lower than the average realization of $4,900 per ounce for gold sales, demonstrating effective cost management.
- Optimistic Market Outlook: Despite gold prices being 15% below historical highs, Newmont trades at only 13 times this year's earnings expectations, indicating market confidence in its future profitability, while its leadership in the global gold market continues to provide a competitive edge.
See More
Newmont Reports Strong Q1 Earnings Amid Record Gold Prices
- Earnings Beat: Newmont reported a net income of $3.3 billion for Q1, with adjusted net income at $3.2 billion or $2.90 per share, significantly exceeding market expectations, showcasing strong financial performance supported by record gold prices despite lower production.
- Share Buyback Plan: The company announced a $6 billion share repurchase program, which not only boosts shareholder confidence but may also enhance earnings per share by reducing the number of shares outstanding, potentially driving the stock price higher.
- Production and Costs: Q1 attributable gold production fell to 1.3 million ounces from 1.54 million ounces year-over-year, while all-in sustaining costs dropped to $1,029 per ounce, primarily impacted by bushfires and heavy rainfall at the Boddington mine, indicating dual pressures of production challenges and cost control.
- Future Guidance: Newmont maintained its FY 2026 gold production guidance at 5.26 million ounces, expecting Q2 production to account for 23% of total attributable output, but warned that costs in Q2 would be notably higher than Q1 due to increased sustaining capital spending and operating costs, which could pressure profitability.
See More
Newmont Q1 2026 Earnings Call Insights Highlight Strong Performance
- Outstanding Financial Performance: Newmont reported $3.8 billion in cash flow from operations and $3.1 billion in free cash flow for Q1 2026, marking a quarterly record that underscores the company's ability to reinvest under its enhanced capital allocation framework, thereby boosting shareholder returns.
- Production Capacity Recovery: The company expects to complete underground rehabilitation within the next five weeks, enabling a return to 80% operating capacity, which will support its full-year production guidance of 5.3 million ounces while alleviating short-term production pressures from the Cadia earthquake.
- Shareholder Return Program: Newmont announced a new $6 billion share repurchase authorization, having repurchased $6 billion in shares over the past 24 months, reflecting management's confidence in future cash flows and commitment to enhancing shareholder value.
- Cost Management Strategy: Despite challenges from rising energy prices and global supply chain dynamics, Newmont maintains its 2026 cost guidance, emphasizing disciplined cost management and productivity improvements to mitigate the $25 per ounce cost headwind from the newly introduced Ghana sliding scale royalty.
See More
Newmont Corporation Reports 45.9% Revenue Growth in Q1
- Significant Revenue Growth: Newmont Corporation reported $7.31 billion in revenue for Q1 2026, representing a 45.9% year-over-year increase, exceeding market expectations of $6.36 billion, indicating strong performance in the gold mining sector.
- Earnings Per Share Beat: The EPS for the quarter was $2.90, a substantial increase from $1.25 a year ago, surpassing analyst expectations of $2.07, reflecting a significant enhancement in the company's profitability.
- Positive Market Reaction: With both revenue and EPS exceeding expectations, investor sentiment towards Newmont is optimistic, potentially driving stock price increases and bolstering market confidence.
- Key Metrics Analysis: Analysts highlight that the substantial improvement in Newmont's key financial metrics compared to the previous year may provide investors with better projections for stock price performance, further solidifying its leadership position in the industry.
See More
Newmont (NEM) Q1 2026 Earnings Transcript
See More
Newmont Mining Surges After Exceeding Earnings Expectations
- Earnings Beat: Newmont Mining reported a 45.9% year-over-year revenue increase to $7.31 billion in Q1, with adjusted EPS soaring 132% to $2.90, significantly surpassing analyst expectations and demonstrating robust performance amid rising gold prices.
- Share Buyback Initiative: The company repurchased $2.4 billion in shares during the quarter and announced a new $6 billion buyback program, aimed at enhancing shareholder returns and reflecting management's confidence in the company's future prospects.
- Cost Reduction: Despite anticipating lower production this year due to weather and maintenance issues, Newmont achieved an all-in sustaining cost of $1,029 per ounce, well below the $4,900 per ounce realization price, showcasing effective cost management.
- Market Outlook Caution: Management warned that sustaining costs per ounce may rise due to the closure of the Strait of Hormuz, although Newmont trades at only 13 times this year's earnings, indicating market sensitivity to gold prices.
See More
Newmont Reports Strong Q1 Earnings Beat
- Significant Earnings Growth: Newmont's Q1 revenue surged 45.9% to $7.31 billion, with adjusted earnings per share skyrocketing 132% to $2.90, both figures exceeding analyst expectations and reflecting the company's strong position in the gold market.
- Accelerated Share Buybacks: Management ramped up share repurchases amid stock price declines due to the Iran war, having repurchased $2.4 billion in shares since the last earnings release, alongside a newly authorized $6 billion buyback program aimed at enhancing shareholder returns.
- Effective Cost Control: While sustaining costs are expected to rise due to increasing oil and gas prices, Newmont's all-in sustaining costs dropped to $1,029 per ounce, significantly lower than the average realization of $4,900 per ounce for gold sales, demonstrating effective cost management.
- Optimistic Market Outlook: Despite gold prices being 15% below historical highs, Newmont trades at only 13 times this year's earnings expectations, indicating market confidence in its future profitability, while its leadership in the global gold market continues to provide a competitive edge.
See More
Newmont Reports Strong Q1 Earnings Amid Record Gold Prices
- Earnings Beat: Newmont reported a net income of $3.3 billion for Q1, with adjusted net income at $3.2 billion or $2.90 per share, significantly exceeding market expectations, showcasing strong financial performance supported by record gold prices despite lower production.
- Share Buyback Plan: The company announced a $6 billion share repurchase program, which not only boosts shareholder confidence but may also enhance earnings per share by reducing the number of shares outstanding, potentially driving the stock price higher.
- Production and Costs: Q1 attributable gold production fell to 1.3 million ounces from 1.54 million ounces year-over-year, while all-in sustaining costs dropped to $1,029 per ounce, primarily impacted by bushfires and heavy rainfall at the Boddington mine, indicating dual pressures of production challenges and cost control.
- Future Guidance: Newmont maintained its FY 2026 gold production guidance at 5.26 million ounces, expecting Q2 production to account for 23% of total attributable output, but warned that costs in Q2 would be notably higher than Q1 due to increased sustaining capital spending and operating costs, which could pressure profitability.
See More
Newmont Q1 2026 Earnings Call Insights Highlight Strong Performance
- Outstanding Financial Performance: Newmont reported $3.8 billion in cash flow from operations and $3.1 billion in free cash flow for Q1 2026, marking a quarterly record that underscores the company's ability to reinvest under its enhanced capital allocation framework, thereby boosting shareholder returns.
- Production Capacity Recovery: The company expects to complete underground rehabilitation within the next five weeks, enabling a return to 80% operating capacity, which will support its full-year production guidance of 5.3 million ounces while alleviating short-term production pressures from the Cadia earthquake.
- Shareholder Return Program: Newmont announced a new $6 billion share repurchase authorization, having repurchased $6 billion in shares over the past 24 months, reflecting management's confidence in future cash flows and commitment to enhancing shareholder value.
- Cost Management Strategy: Despite challenges from rising energy prices and global supply chain dynamics, Newmont maintains its 2026 cost guidance, emphasizing disciplined cost management and productivity improvements to mitigate the $25 per ounce cost headwind from the newly introduced Ghana sliding scale royalty.
See More
Newmont Corporation Reports 45.9% Revenue Growth in Q1
- Significant Revenue Growth: Newmont Corporation reported $7.31 billion in revenue for Q1 2026, representing a 45.9% year-over-year increase, exceeding market expectations of $6.36 billion, indicating strong performance in the gold mining sector.
- Earnings Per Share Beat: The EPS for the quarter was $2.90, a substantial increase from $1.25 a year ago, surpassing analyst expectations of $2.07, reflecting a significant enhancement in the company's profitability.
- Positive Market Reaction: With both revenue and EPS exceeding expectations, investor sentiment towards Newmont is optimistic, potentially driving stock price increases and bolstering market confidence.
- Key Metrics Analysis: Analysts highlight that the substantial improvement in Newmont's key financial metrics compared to the previous year may provide investors with better projections for stock price performance, further solidifying its leadership position in the industry.
See More
Newmont (NEM) Q1 2026 Earnings Transcript
See More
