Gold Miners Cash In Despite Metal's Price Slump

Gold's months-long correction has been ongoing, but prices have yet to break through critical support around $4,000 an ounce. This consolidation is partly due to the metal's traditional role as a safe-haven asset and the pressure of rising real yields.

However, investors may be missing the story unfolding in the mining sector. Despite gold's 30% drop from its first-quarter highs, miners have benefited from an average gold price of over $4,400 an ounce during the second quarter.

Agnico Eagle delivered a record quarter, generating $1.335 billion in free cash flow while returning a record $625 million to shareholders. Kinross reported more than $725 million in free cash flow and increased its net cash position to $1.9 billion.