Gold miners are expected to report sharply higher second-quarter profits, buoyed by stronger bullion prices, though the Iran war’s impact on energy costs likely weighed on earnings growth.
Expected Earnings
The world’s two biggest listed producers, Newmont and Barrick Mining, are expected to post combined profit of nearly $3.5 billion, up from $2.4 billion a year earlier, according to data compiled by LSEG.
Average gold prices rose about 37% from a year earlier to $4,506.41 an ounce during the quarter, supporting earnings even as prices retreated more than 14% from the record high of $5,594.82 an ounce hit in January.
Despite the cost pressures from higher energy prices, major producers, including Newmont and Barrick, are expected to generate substantial free cash flow and maintain strong balance sheets.
Strong cash generation is expected to keep buybacks in focus, with Scotiabank forecasting significant share repurchases by Newmont, Barrick, Agnico Eagle Mines and Kinross Gold.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
