GOLD producers are on track to post substantially higher second-quarter earnings on the back of firmer bullion prices, though rising energy costs tied to the Iran war likely capped some of those gains, according to a report this week by Reuters.
Newmont and Barrick Mining, the world’s largest listed gold producers, are together forecast to report profit of nearly $3.5bn, up from $2.4bn a year earlier, LSEG data cited by Reuters showed.
Average gold prices climbed about 37% year-on-year to $4,506.41 an ounce over the quarter, even after retreating more than 14% from January’s record of $5,594.82. Despite higher energy costs, Reuters reported that major miners including Newmont and Barrick are still expected to generate strong free cash flow and hold solid balance sheets.
That cash strength should keep buybacks in focus, with Scotiabank forecasting sizeable repurchases from Newmont, Barrick, Agnico Eagle Mines and Kinross Gold.
RBC’s Josh Wolfson said producers remain well-placed, with many holding net cash and guiding to stronger performance in the second half, though he flagged that tougher comparisons could make quarterly results uneven.
Attention will also fall on Newmont’s execution as CEO Natascha Viljoen continues reshaping leadership, having named Brian Tabolt CFO in June. BMO Capital Markets said the shake-up should reduce uncertainty and support project delivery.
Newmont reported its numbers on Thursday, Agnico and Kinross on 29 July, and Barrick on 10 August, Reuters said.
