Newmont Defies Gold Price Plunge with Record Earnings

Newmont Corporation, the world's largest gold miner, reported strong second-quarter results despite a sharp drop in gold prices. The company earned $2.2 billion last quarter, with adjusted earnings growing 47% year-over-year and free cash flow reaching a record for any second quarter.

This apparent contradiction has a straightforward explanation: operating leverage. Because a large share of a miner's costs are fixed, the cost per ounce does not rise proportionally when the gold price rises. As a result, Newmont captured a gross margin of approximately $2,793 on every ounce it produced in Q2 2026, even with a 13% correction in gold prices.

Newmont's CFO noted that higher diesel costs are a concern for the second half of 2026, but the company remains on track to meet its full-year guidance. The next major data point for the sector arrives July 29, when Agnico Eagle Mines reports its Q2 results.