Investing.com -- Goldman Sachs downgraded Evolution Mining to Sell and Newmont Corporation’s ASX-listed shares to Neutral, given valuation concerns and lacklustre production growth ahead of June-quarter results and 2026 outlooks from Australian gold producers.

The brokerage flagged a “broadly flat” gold production profile for Evolution over the next two years, with output expected to dip slightly in FY26 and further in FY27 due to stockpile reliance at its Cowal operation. 

While study updates at Ernest Henry and Northparkes could offer some upside, Goldman noted these were already anticipated by the market.

Invest in Gold

American Hartford Gold: #1 Precious Metals Dealer in the Nation  Learn More

Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase  Learn More

Thor Metals Group: Best Overall Gold IRA  Learn More

Powered by Money.com - Yahoo may earn commission from the links above.

Shares of Evolution are trading at a premium to large-cap peers, the note said, despite limited growth visibility. 

FY26 output is forecast at 735,000 ounces at an all-in sustaining cost (AISC) of A$1,585/oz, following FY25 production of 747,000 ounces at A$1,635/oz.

Newmont, which reports on a calendar year, remains one of the more defensive names in the sector, according to Goldman. 

However, recent share price outperformance has brought valuations in line with peers, leading to the downgrade. Second-quarter production is expected to total 1.38 million ounces at a gold AISC of about US$1,850/oz, helping generate estimated EBITDA of US$2.63 billion.

Goldman reaffirmed its Buy rating on  Northern Star Resources  (ASX:NST), citing solid FY25 sales of 1.634 million ounces and FY26 guidance of up to 1.85 million ounces. 

Still, cost pressures are mounting: NST’s FY26 AISC guidance of A$2,300–2,700/oz came in above expectations, reflecting sector-wide inflation and increased capital intensity.

Among mid-cap producers, the bank continues to prefer Westgold and Valor, and maintains a Sell on  Regis Resources  (OTC:RGRNF).

Related articles

Goldman downgrades Evolution, Newmont ahead of Australia gold earnings season

Amazon stock falls after Prime Day spending shows 14% decline in early hours

Bank stocks drop as HSBC becomes more cautious

View Comments