Kirkland Lake Discoveries Corp (TSXV:KLDC, OTC:KLKLF)
District-Scale Exploration in World-Famous Gold Camp
Shares of Newmont Mining (NEM), the world’s largest gold mining company, rose 8.5% on Friday. The company released its earnings report on Thursday evening, beating market expectations. Although it was widely known that gold prices had risen during the quarter, Newmont’s stock performance significantly outpaced gold itself, which rose only 0.2% on the same day.
Newmont is a global leader in gold mining and also produces copper, silver, zinc, and lead. In fiscal year 2025, Newmont achieved attributable gold production of 5.89 million ounces. In recent years, the company has completed several major acquisitions: the $10 billion acquisition of Goldcorp in 2019 and the $16.8 billion acquisition of Newcrest Mining in 2023.
In the first quarter, Newmont reported a 45.9% increase in revenue, reaching $7.31 billion, while adjusted earnings per share surged 132% to $2.90. Both figures easily surpassed analyst expectations.
The company had previously forecast a decline in production this year due to wildfires, adverse weather, and scheduled maintenance work at its mines worldwide. However, actual operating results came in better than expected. The quarterly all-in sustaining cost fell to $1,029 per ounce, while the average realized price for gold sales reached $4,900 per ounce.
Management ramped up share buybacks during the quarter, stating that since the previous earnings release on February 19, the company had repurchased $2.4 billion worth of shares. The timing of this accelerated buyback coincided with a drop in Newmont’s share price triggered by the outbreak of war conflicts in Iran.
Moreover, the company’s board of directors approved a new $6 billion share repurchase program. This indicates that, in addition to dividends, shareholder returns will continue.
Management has warned that all-in sustaining costs per ounce are expected to rise during the year as the closure of the Strait of Hormuz drives up prices for oil, gas, and other commodities—all of which are inputs for Newmont’s mining operations.
However, Newmont’s current share price is trading at only 13 times this year’s earnings expectations, suggesting that the market may have already partially priced in these cost factors. For Newmont’s stock, the more critical factor remains the price of gold. Although gold prices have risen significantly in recent years, they are still about 15% below the all-time high.
Summary: Newmont has driven its stock price to significantly outperform gold itself, thanks to better-than-expected quarterly results and a robust shareholder return plan. Although cost pressures are set to rise during the year, the current valuation remains relatively reasonable. As the world’s leading gold mining company, Newmont has strengthened its industry position through continuous mergers and acquisitions, but the future trend of its stock price will remain highly dependent on changes in the price of gold.
