Key facts
- Gold miners are expected to report significantly higher second-quarter profits due to stronger bullion prices.
- The world's two largest listed producers, Newmont and Barrick Mining, are projected to post combined profits of nearly $3.5 billion.
- Average gold prices increased approximately 37% year-over-year during the quarter.
- Higher energy costs, influenced by the Iran conflict, are anticipated to have pressured earnings.
- Despite cost pressures, major producers are expected to maintain strong balance sheets and generate substantial free cash flow.
- Newmont is implementing a management overhaul, including appointing Brian Tabolt as CFO.
Gold miners are anticipated to report a significant increase in second-quarter profits, driven by a substantial rise in bullion prices. However, elevated energy costs, partly attributed to the conflict in Iran, are expected to have tempered the growth in earnings.
According to LSEG data, the two largest listed producers, Newmont and Barrick Mining, are projected to achieve a combined profit of nearly $3.5 billion, a notable increase from $2.4 billion in the same period last year.
During the quarter, average gold prices saw a year-over-year increase of approximately 37%, reaching $4,506.41 per ounce. This surge supported earnings, even though prices retreated more than 14% from their record high of $5,594.82 per ounce in January.
Despite the cost pressures from higher energy prices, major producers like Newmont and Barrick are expected to maintain strong balance sheets and generate substantial free cash flow. This strong cash generation is likely to keep share buybacks in focus, with Scotiabank forecasting significant repurchases by Newmont, Barrick, Agnico Eagle Mines, and Kinross Gold.
RBC analyst Josh Wolfson noted that gold producers remain in a strong position, with most holding net cash and guiding for improved operating performance in the latter half of 2026. However, he cautioned that second-quarter earnings might be mixed due to tougher sequential comparisons.
Investors will also be closely monitoring Newmont's operational execution. The company's CEO, Natascha Viljoen, has been reshaping its leadership team, appointing Brian Tabolt as chief financial officer in June as part of a broader management overhaul aimed at reducing uncertainty and improving operational performance.
Newmont is scheduled to report its results on Thursday, followed by Agnico and Kinross Gold on July 29, and Barrick on August 10.