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Gold miners to reap bumper profits following bullion's record rise

Investors are waiting for the latest updates from top producers Newmont, Barrick, and other gold miners to see if they can deliver a stellar third quarter earnings.

According to LSEG data, analysts expect both mines to earn a combined profit for the period of more than $3 billion. This is nearly double the $1.4 billion earned last year.

In the quarter July-September, prices averaged $3.574.95 an ounce, up 43.5% on an annual basis.

This month, the price of gold surpassed $4,000 an ounce for first time. Some analysts predict that the price will reach $5,000 next year.

Stifel analysts noted that precious metal miners also benefit from stable production and cost pressures. However, they warned of rising contractor fees and royalties, as well as taxes and duties linked to gold.

INVESTORS SET FOR BONANZA

Profits are another factor that encourages miners to increase shareholder returns. Newmont, the world's largest miner, returned $1 billion to shareholders last quarter. It also approved a plan for a $3 billion buyback of shares.

Newmont's spokesperson stated that the company was well-positioned to provide strong returns to its shareholders, through a predictable dividend and an active share repurchase plan.

Barrick returned 753 million dollars in the first half of 2025, which included a 15-cent dividend per share and a performance payout.

We forecast that a majority will be in net cash by the third quarter. RBC Capital Markets analysts said that buybacks across large-cap producers will continue in Q3. They also noted that comments on the future of this activity, given recent gains in share prices, would be noteworthy.

Newmont shares have risen 132% in the past year while Barrick has soared 98%.

Newmont will report its results on Thursday. Agnico, Kinross and Barrick are all scheduled to follow on Friday.

LEADERSHIP IS CENTRAL Barrick and Newmont announced CEO transitions last month on the same date, but Barrick's announcement was the one that resonated across the industry.

Mark Bristow, Barrick's Mark Bristow, made a sudden exit, despite having previously pledged to remain. This raised questions about the company's strategic direction, particularly after a $1 Billion write-off related to its Mali Mine.

Citi analysts believe that the incoming CEO may reshape Barrick’s approach to assets such as Reko Diq.

Analysts are more favorable towards the miner due to their growing confidence in Fourmile Project in Nevada.

Analysts were more concerned about Newmont's decision to appoint Natascha Vijoen as its first female CEO.

(source: Reuters)