Newmont: Record Cash Flow, Rising Costs
Anyone looking to invest in gold without hoarding bars in a safe quickly ends up with the world’s largest producer. Newmont mines in Nevada, Australia, Canada and Ghana. In recent years, the company has streamlined its portfolio and focused on major mines such as Boddington, Cadia, Tanami, Lihir and Ahafo. Production is not hedged. This means that every dollar earned is directly tied to the price of gold. While this can work in the company’s favour, it can also lead to an equally rapid decline during weak market phases.
On July 23, the company reported its second-quarter results. Gold production totaled 1.29 million ounces, compared to 1.30 million ounces in the first quarter. The realized gold price reached USD 4,414 per ounce. All-in sustaining costs climbed to USD 1,621 per ounce, up from just USD 1,029 in the first quarter. This was due to lower by-product credits and the seismic event at Cadia in April. Free cash flow totaled USD 2.2 billion. Management confirmed the annual forecast of 5.3 million ounces.
On August 10, the dispute with Barrick over the Nevada Gold Mines was resolved. Fourmile will be transferred to the joint venture; Newmont will contribute the Fiberline and Mike projects and transfer USD 1.95 billion. Newmont continues to hold a 38.5% stake in the joint venture. Fourmile is expected to eventually produce 600,000 to 750,000 ounces per year, at a cost of USD 650 to USD 750 per ounce. If development is successful, the Nevada business will gain momentum. However, energy accounts for about 15% of direct operating costs, and capital expenditures will be higher in the second half of the year than in the first half.
Lahontan Gold: Santa Fe Sets Course for a Relaunch
Anyone looking to restart a dormant gold mine needs, above all, enough precious metal in the ground. Lahontan Gold has that. On August 17, the Canadian company presented a new mineral resource estimate (MRE) for the Santa Fe Mine in Nevada’s Walker Lane. It shows 1.195 million ounces of gold equivalent in the “indicated” category and an additional 1.19 million ounces as “inferred”. That is 435,000 ounces, or 22%, more than in 2024.
At the near-surface oxide deposits Slab and York, the increase was even greater, at over 37%. The MRE model shows that the gold and silver mineralization extends well beyond the conceptual pit boundaries. This provides new targets for further drilling.
On September 1, results were released from a tailings pile that the former operator had once labeled as low-grade. Nine Sonic drill holes averaged 1.96 g/t gold equivalent, significantly more than the old classification suggested. The material has already been mined, is located right next to Heap Leach Pad Two, and could therefore be processed cost-effectively. Approximately 16 million metric tons of rock were processed at the four historic heap leach pads. How much gold is still there? Further drill holes are intended to clarify this. If the grades are confirmed, there would be ounces available at a bargain price.
Next up is the revised preliminary economic assessment (PEA), which will, for the first time, also include the higher-grade sulfides. Column tests with an oxidizing pre-leach are already underway. At the same time, the company is advancing permitting at the state and federal levels; construction is scheduled to begin in 2027. On September 8, Lahontan strengthened its management team for this purpose. Tony Gesualdo is returning as Vice President of Exploration; Michael Kubel, Senior Mine Engineer, brings over 10 years of open-pit mining experience from Nevada; and Jen Earle will lead investor relations and business development. The transition from developer to mine operator is underway.
Agnico Eagle: Record Cash Flow
In the second quarter of 2026, Agnico Eagle produced 855,816 ounces of gold, down from 866,029 ounces in the same quarter last year. Production is thus stagnating. Cash flow is still strong, however, because the gold price is driving up margins. Operating cash flow stood at USD 2.14 billion, and free cash flow at USD 1.335 billion—both at record levels. By comparison, the figure for the same quarter last year was USD 1.31 billion. Added to this are USD 3.46 billion in cash and cash equivalents and only USD 197 million in long-term debt. The company spent USD 400 million on share buybacks in the quarter alone. The balance sheet is spotless.
Production is not expected to grow until later, as the 2026 forecast remains at 3.3 to 3.5 million ounces. At Canadian Malartic, the first shaft section has been sunk to 1,586 m, and production from East Gouldie is scheduled to begin in the second quarter of 2027. Hope Bay received regulatory approval in May 2026 and is expected to produce between 400,000 and 435,000 ounces per year starting in 2030. In the second quarter, the Canadian company also acquired Rupert Resources, Aurion, and B2Gold’s stake in FinGold for USD 325 million. If the ramp-up is successful, Finland alone could supply 500,000 ounces annually. Until then, we will have to wait.
Agnico Eagle’s AISC also rose to USD 1,459 per ounce, up 14% from the previous year. At the same time, the company is on a shopping spree among small explorers. On August 24, CAD 57.2 million was invested for a 10.45% stake in Radisson Mining, which is currently driving the first ramp at the O’Brien project. In July, Agnico invested CAD 60 million in Cadillac Mines, and in May, CAD 22.4 million in Wallbridge. On September 9, Agnico transferred the Delta and Helm Bay projects to Vizsla Copper in exchange for approximately CAD 32 million in shares, warrants, and royalties, plus up to CAD 20 million in milestone payments.
The gold sector is being buoyed by record purchases by central banks, a renewed surge in inflows into gold ETFs, and a stable gold price above USD 4,000. Newmont stands out with USD 2.2 billion in free cash flow, a clear focus on top mines, and a compelling growth pipeline. Lahontan Gold impresses with a 22% increase in its mineral resource and promising historical tailings. The company is on its way to becoming a producer. Agnico Eagle impresses with record cash flow, a clean balance sheet, and smart portfolio expansion. All three companies offer promising prospects for an investment in the gold sector.
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