On November 6, Goldman Sachs released a research report on major Australian gold miners, stating that large gold mining companies remain relatively defensive investment targets within the gold extraction sector, though notable differences exist among companies in terms of valuation, production costs, and growth prospects. The bank maintained "Buy" ratings on Newmont and Northern Star, while assigning a "Neutral" rating to Evolution Mining.
Regarding Newmont, Goldman Sachs highlighted its attractive valuation and recent cost control performance. The company reported third-quarter adjusted earnings per share of US$2.20, beating market expectations of US$1.94, with all-in sustaining costs (AISC) of US$1,454 per ounce, prompting management to lower its full-year cost guidance from US$1,680 per ounce to approximately US$1,520 per ounce. However, due to increased sustaining capital expenditure and declining silver production at the Peñasquito mine, Newmont expects unit costs to rise to approximately US$1,900 per ounce in the fourth quarter, with costs potentially increasing further in 2027.
For Northern Star, Goldman Sachs maintained its "Buy" rating, citing valuation support from industry merger and acquisition activity and the company's future production growth prospects as favorable for share price performance. The company acquired the Hemi gold project through an approximately A$5 billion acquisition completed in 2025, while also advancing the Fimiston processing plant expansion at the KCGM operation, which is expected to commence production in early fiscal year 2027. Northern Star plans to increase annual gold production to approximately 2.5 million ounces by fiscal year 2029.
As for Evolution Mining, Goldman Sachs assigned a "Neutral" rating, primarily concerned that a decline in copper prices could weaken the company's profitability. In the third quarter, Evolution Mining achieved an average copper selling price of A$20,876 per tonne, up approximately 8% quarter-on-quarter, but gold production fell from 180,000 ounces in the previous quarter to 154,000 ounces due to weather and contractor operational issues. The company's all-in sustaining cost for gold stood at A$1,653 per ounce, and it has not hedged its gold and copper prices, meaning its earnings will be directly affected by fluctuations in both metals.
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