Newmont's Lower AISC Signals Strong Cost Discipline: Can It Be Sustained?

Newmont Corporation (NEM) reported a 4% decrease in all-in sustaining costs (AISC) to $1,593 per ounce in Q2 2025, driven by lower direct operating costs and sustaining capital spending. The company expects AISC to rise modestly in Q3 due to increased sustaining capital spending. NEM's cost discipline is crucial to sustain margin expansion. In contrast, Barrick Mining Corporation (B) saw a 22% sequential increase in AISC to $1,775 per ounce in Q1 2025, while Agnico Eagle Mines Limited (AEM) reduced AISC to $1,183 per ounce in Q1, a 10% decrease from the prior quarter.

Newmont Corporation (NEM) reported a 4% decrease in all-in sustaining costs (AISC) to $1,593 per ounce in the second quarter of 2025, driven by lower direct operating costs and sustaining capital spending. This improvement underscores Newmont's operational efficiency. However, the company expects AISC to rise modestly in the third quarter due to increased sustaining capital spending. Maintaining cost discipline will be crucial for Newmont to sustain its margin expansion [1].

In contrast, Barrick Mining Corporation (B) saw a 22% sequential increase in AISC to $1,775 per ounce in the first quarter of 2025. This increase was influenced by operational challenges, higher total cash costs per ounce, and an uptick in minesite sustaining capital expenditures. Lower production, partly due to the suspension of operations at Barrick’s Loulo-Gounkoto mine, also contributed to the rise [1].

Agnico Eagle Mines Limited (AEM) reduced its AISC to $1,183 per ounce in the first quarter of 2025, marking a 10% decrease from the prior quarter. This improvement was primarily due to the deferral of certain sustaining capital expenditures at Detour Lake and Canadian Malartic operations. Agnico Eagle clocked a record-high operating margin in the first quarter, thanks to reduced production costs. However, the company anticipates higher AISC in the latter part of 2025 as deferred expenditures are realized [1].

Barrick Mining Corporation, a deep-value stock, is emerging as a standout opportunity in the gold sector. The company's discounted valuation, strategic growth projects, and macro-driven tailwinds create a rare convergence of value and momentum. The stock trades at a 38% discount to sector P/E, with a $1 billion buyback and 2.4% dividend yield offering immediate returns. Meanwhile, projects like Goldrush and Reko Diq provide a $90 billion operating cash flow runway, ensuring long-term compounding [2].

Agnico Eagle Mines, a Canadian gold giant, has hit a record high of $175 per share. The company delivered impressive Q1 2025 results, with $815 million in net income and 873,794 ounces of gold produced. Agnico Eagle's strong balance sheet and differentiated advantages, such as a low AISC, long reserve life, and ESG premium, make it an attractive investment [3].

References:
[1] https://finance.yahoo.com/news/nems-lower-aisc-signals-strong-113500210.html
[2] https://www.ainvest.com/news/barrick-mining-deep-buy-high-conviction-gold-sector-play-2507/
[3] https://nai500.com/blog/2025/07/agnico-eagle-mines-a-canadian-mining-stock-at-all-time-highs-that-still-offers-value/