$NEM

Gold mining stocks fell Wednesday as bullion prices dropped 1.5% to $4,095.16 per ounce, following stronger-than-expected inflation data that increased Fed rate hike expectations. Barrick Mining (ABX) and Newmont (NEM) declined 1.5% and 1.7%, respectively, while other major miners also saw losses.

UBS highlights preferred gold mining stocks amid sector volatility. Gold prices peaked at $5,400/oz in early 2026, correcting to $4,170/oz by September. UBS expects cost pressures in 2027 but sees attractive margins if prices stay above $4,000/oz. Top picks include Newmont, Barrick, Endeavour, SSR Mining, Skeena Resources, and Franco-Nevada, citing operational improvements and strategic developments.

Newmont CEO Natascha Viljoen discussed challenges in South Africa's mining industry, citing policy uncertainty. She noted Ghana's mining landscape has changed due to new royalty regulations, including a 12% levy on gross revenue when gold prices reach $4,500/oz. Newmont's Ahafo operations in Ghana produced 734,000oz in 2025, but face uncertainty due to expired stability agreements. Viljoen emphasized the need for fiscal certainty to attract investment.

Gold prices fell to a two-month low, with spot gold closing at $4,109.90 per ounce, down 1.28%. The decline followed Fed signals of another rate hike, with the 10-year Treasury yield at 5.36%. Gold-related ETFs and mining stocks, including Newmont and Barrick, also dropped. China's central bank continued buying gold, but analysts warn of further pressure due to higher rates.

Goldman Sachs lowered its price target for Newmont from $127.50 to $119. The company's stock is currently at $113.54, down 2.45% in the last 5 days and 1.56% year-to-date. Newmont's CEO recently emphasized financial discipline in the gold industry.

Newmont (NEM) CEO Natascha Viljoen advised the gold industry to maintain spending discipline despite higher gold prices, citing opportunities for expanding margins. Gold hit a record high of $5,595/oz in January 2026 but is down 4.7% this year. Experts forecast a 12-month target of $5,013/oz. Viljoen emphasized cost control to avoid poor decisions when the cycle turns and noted gold's role as a low-risk, long-term value store.

StrikePoint Gold Inc. (TSXV:SKP) (OTCQB:STKXF) acquired the Northumberland Gold Project in Nevada from Newmont Corporation (NYSE:NEM) subsidiaries for $70M upfront, with potential $50M in future payments. The project has 2.86M oz indicated and 1.57M oz inferred gold equivalent resources. StrikePoint raised C$190M via a private placement to fund the acquisition and development.

Gold prices remain above $4,000/oz despite recent volatility. Key US-listed gold mining and royalty stocks include Newmont (NEM), Agnico Eagle (AEM), Barrick (B), Franco-Nevada (FNV), and Wheaton Precious Metals (WPM). Newmont reported Q2 2026 gold production of 1.3M oz and $2.2B free cash flow. Agnico produced 855,816 oz with Q2 free cash flow of $1.335B. Franco-Nevada and Wheaton use royalty/streaming models to reduce operating risks.

The Australian S&P/ASX 200 Index rose 0.87% to 8,784.70, driven by gains in gold miners, energy stocks, and some tech companies, despite negative cues from Wall Street. Key movers include Rio Tinto, BHP Group, Woodside Energy, Block, and Northern Star Resources. Lindian Resources fell 23% and DhroneShield surged 10% on company news.

Major miners face skilled labor shortages, threatening delays and cost overruns on $2.2T capital spending from 2025-2035, per McKinsey. Newmont's Peter Toth and Coeur Mining's Mitch Krebs highlight execution challenges. McKinsey forecasts $3.6T revenue for global metals/mining firms in 2026, with 33% EBITDA margins. Copper and gold lead projected capital requirements, with Latin America and North America as key regions.