Newmont's Gold Price Bump Falls Short of Valuation Expectations
Newmont Corp, the world's largest gold miner, reported a 40% increase in adjusted net profit after tax to $2.2 billion or $2.10 per share in its second-quarter result. The higher gold price more than offset lower sales volumes and increased unit costs.
The company's guidance remains unchanged, with Newmont tracking broadly in line with Morningstar's forecast for 2026 EPS of $9.07, up from $6.89 in 2025. Despite the stronger gold prices, Newmont's shares have fallen about 30% since late January 2026.
The reason behind this discrepancy lies in the fact that the current gold price of around $4,100 per ounce is more than twice Morningstar's assumed mid-cycle price of $2,050. This has led to a reevaluation of Newmont's fair value estimate, which remains at $97 (USD $67) per share.