Newmont – Why Newmont Remains a Compelling Choice Despite a Price Dip
Those betting on gold today do not necessarily need to hold the precious metal in their portfolio. The real story is being written by the world’s largest producer, Newmont. The only gold producer in the S&P 500 is benefiting from a structural shift. Central banks are systematically buying gold and replacing US Treasury bonds. This is not a speculative flash in the pan, but a fundamental realignment of global reserves. With an average gold price of USD 4,900 per ounce in the first quarter of 2026 and total costs of just USD 1,029, margins remain above USD 3,800 per ounce. This is creating a cash-generating machine that is surprising even industry insiders.
The first quarter delivered record figures despite operational disruptions. Production volume dropped to 1.3 million ounces, partly due to a severe bushfire in Australia. Nevertheless, revenue jumped 46% to USD 7.3 billion. Adjusted earnings per share exceeded all forecasts at USD 2.90. Even more impressive was free cash flow of USD 3.1 billion, the highest quarterly figure in the company’s history. Added to this were 9 million ounces of silver and 30,000 metric tons of copper, further diversifying the business. Management is sticking to its annual forecast of 5.3 million ounces of gold.
What stands out is the company’s liquidity approach. Following the completion of the last USD 6 billion share buyback program, a new one of the same size was launched seamlessly. Since the last quarterly report, USD 2.7 billion has been returned to shareholders through buybacks and dividends. The quarterly dividend stands at USD 0.26 per share. With a net cash balance of USD 3.2 billion, the balance sheet is in better shape than it has been in a long time. Although the second quarter will be weaker due to the aftermath of the earthquake, analysts see price potential averaging USD 145. At a current price of USD 109.85, Newmont remains a winner of the gold boom.
DRC Gold – Focusing on the Northeast of the DRC
A name is resurfacing in the Congolese gold business: Klaus Eckhof. The geologist who once developed the 20-million-ounce Kibali deposit is back—with his own company and a project located right next to his former successful site. Eckhof’s new vehicle, DRC Gold, recently secured the rights to the Giro project. The property boasts a figure that catches the attention of industry experts. The historically reported 4.4 million ounces per JORC are located just 35 km from Kibali. Investors familiar with Eckhof’s approach can be certain that the geologist only targets a region if there is more to it than just nice rock.
The geological parallels to its larger neighbour are clear, even if the average grades are somewhat lower. With a gold price hovering around the USD 4,500 per ounce mark, however, this quickly becomes a minor consideration. Added to this is a decisive technical advantage: the ores can be processed without metallurgical issues. The backstory is particularly appealing. Eckhof developed Giro years ago but had to give it up at the time because the gold price stood at a meagre USD 1,100 and no one wanted to take the risk. Today, at a price many times higher than back then, this historical moment feels like a missed opportunity that the veteran now wants to make up for.
For investors, one detail is crucial. The reported ounces are historical but do not yet constitute an official resource under Canadian standards. Work on this is proceeding at full speed. An independent geologist has already been on-site, and the updated report is expected in a few weeks. The project has also already been explored with a high double-digit million-dollar budget. This significantly reduces the risk compared to a completely new discovery. Those who get in now are betting on an experienced operator who wants to land the next big win in his old hunting ground before the market sees the final confirmation. The stock is currently trading at CAD 0.195, translating to a market capitalization of around CAD 21 million. That is extremely inexpensive if the 4.4 million ounces are confirmed.
B2Gold – Strong Operational Foundation
B2Gold closed the first quarter of 2026 with production of just under 238,000 ounces. Each of the four mines exceeded its internal targets. This is no coincidence but speaks to solid planning. With an average selling price of over USD 4,190 per ounce, revenue surged to USD 1.16 billion. More importantly, costs remain under control. The so-called all-in sustaining costs of USD 1,964 per ounce were well below the annual forecast. The operating margin is thus generous, and free cash flow reached USD 362 million.
Management is using the strong results to further strengthen the balance sheet. At the end of April, the USD 800 million revolving credit line was fully repaid. It is now fully available as a liquidity buffer. In addition, the sale of the Finnish stake in Agnico Eagle generated USD 325 million in cash. Share buybacks are proceeding in parallel. Already, 20 million shares have been repurchased for approximately USD 98 million. This signals confidence. Investors who value disciplined capital allocation and a comfortable liquidity cushion will find solid facts here.
The fire at the Goose Mine’s crushing plant in mid-April led to a temporary production dip. Production is expected to be approximately 10,000 ounces lower in the second quarter. Repairs will cost about USD 10 million and are expected to be completed in the third quarter. Nevertheless, the annual guidance for Goose remains at 170,000 to 230,000 ounces. In addition, a prepayment obligation ends in June that has so far tied up a large portion of Fekola production at a price of just USD 2,191. Starting in the second half of the year, the ounces will then be sold at spot prices. This should give cash flow another significant boost. Currently, a share costs USD 4.70.
The gold boom is creating a rare window of opportunity for investors. Newmont, as the industry leader, is generating an impressive cash flow machine and returning substantial liquidity to shareholders through share buybacks and dividends. DRC Gold offers significant takeover potential thanks to its experienced management team and historical resources of 4.4 million ounces, despite its still very small market capitalization. B2Gold impresses with its disciplined operational foundation, having repaid its credit line ahead of schedule, and is expected to benefit from full spot prices beginning in the second half of the year. Investors seeking strong margins, sector consolidation, and smart capital allocation will find three distinct but equally promising gold stocks here.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a “Transaction”). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is also a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.