Newmont Defies Gold Slump, While Paulson Declares Gold Bull Market Is Still In Infancy
Newmont brushed aside a 13% correction in gold prices during the second quarter of 2026, reporting net income of $2.2 billion, or $2.06 per diluted share, on $6.1 billion in revenue.
Newmont brushed aside the correction in gold prices during the second quarter of 2026, reporting net income of $2.2 billion, or $2.06 per diluted share, on $6.1 billion in revenue. Adjusted earnings of $2.10 per share beat Wall Street's $1.98 consensus, while free cash flow hit an all-time second-quarter high of $2.2 billion. Attributable gold output reached 1.29 million ounces, down just 1% from the prior quarter despite a temporary seismic-related shutdown at Cadia in Australia, which returned to normal by mid-June; the realized gold price averaged $4,414 per ounce, down from $4,900 in Q1 but well above the year-ago $3,320.
Costs rose, with by-product all-in sustaining costs climbing to $1,621 per ounce from $1,029 on lower volumes, higher sustaining capital, and the Cadia disruption, though year-to-date costs remain within full-year guidance. The world's largest gold producer returned $1.9 billion to shareholders since its last results, $1.7 billion of it in buybacks, cutting its share count roughly 9% since February 2024, and ended June with $9.0 billion in cash and a $3.4 billion net cash position. The board declared a $0.26 quarterly dividend, the Red Chris Block Cave project won key British Columbia regulatory approvals, and Newmont reaffirmed 2026 guidance of roughly 5.26 million ounces at an AISC near $1,680. Paulson Declares Gold Bull Market in Its Infancy, Pivots Entire $3.1B Portfolio to Mining Stocks
On the other side of the news, Billionaire hedge fund manager John Paulson argues the gold bull market is still in its infancy, even with prices struggling to hold above $4,100 per ounce, telling CNBC that eroding confidence in paper currencies and relentless central bank buying will keep driving bullion higher, in his words, gold is becoming the world's most apt reserve currency.
His conviction is near-absolute: having exited physical gold entirely by mid-2022, his $3.11 billion portfolio disclosed in May 13F filings is built almost exclusively around gold and precious-metals mining equities, with a heavy tilt toward junior explorers, which he calls the greatest way to invest in the theme. Freeport's Gold Arm Glitters Despite Bullion's Worst Quarterly Rout Since 2013
Speaking about gold miners, Freeport-McMoRan's gold segment proved remarkably sturdy in the second quarter even as bullion endured its worst quarterly rout in more than 13 years. The world's largest publicly traded copper producer realized an average gold price of $4,520 per ounce, up 37% year over year, while copper climbed 36% to $6.17 per pound, lifting adjusted net income to $1.1 billion, or $0.74 per diluted share, from $790 million a year earlier, though net income attributable to shareholders of $984 million, or $0.68 per share, narrowly missed the $0.78 consensus. Gold output reached 192,000 ounces with sales of 123,000 ounces, still constrained by rehabilitation at the Grasberg Block Cave in Indonesia following last September's mud rush, while copper sales of 710 million pounds exceeded the company's April forecast.
Management confirmed the Grasberg recovery remains on schedule: Production Blocks 2 and 3 hit targeted rates during the quarter, the mine should run at roughly 65% of capacity through the second half of 2026, reach 80% by mid-2027, and return to full output by the end of next year .
Related assets: Gold, Silver, Palladium, Platinum