STOCKS | Goldman Sachs Favors Newmont and Northern Star, Flags Copper-Price Risk at Evolution Mining

Goldman Sachs maintained Buy ratings on Newmont and Northern Star and a Neutral rating on Evolution Mining, citing concern that falling copper prices could weaken Evolution’s earnings. According to Sina Finance, the bank said large gold miners remain relatively defensive investments, although valuations, production costs and growth prospects differ significantly. Newmont reported adjusted third-quarter earnings per share of $2.20, above market expectations of $1.94. Its all-in sustaining cost (AISC) was $1,454 per ounce, prompting management to lower its full-year cost guidance from $1,680 to about $1,520 per ounce. Higher sustaining capital expenditure and lower silver production at the Peñasquito mine were expected to lift fourth-quarter unit costs to about $1,900 per ounce, with costs potentially rising further in 2027. Goldman Sachs maintained its Buy rating on Northern Star, citing valuation support from industry mergers and acquisitions and the company’s production growth prospects. An acquisition completed in 2025 for about A$5 billion gave the company the Hemi gold project. Northern Star is also advancing an expansion of the Fimiston processing plant at the KCGM mine, which is expected to begin production in early fiscal 2027. The company plans to raise annual gold output to about 2.5 million ounces by fiscal 2029. Goldman Sachs assigned Evolution Mining a Neutral rating, citing the risk that lower copper prices could weigh on earnings. In the third quarter, the company’s average realized copper sales price rose about 8% quarter over quarter to A$20,876 per metric ton. Gold production fell to 154,000 ounces from 180,000 ounces in the previous quarter, affected by weather and contractor operating issues. Evolution’s gold AISC was A$1,653 per ounce. The company does not hedge gold or copper prices, leaving its earnings directly exposed to price fluctuations in both metals.