Newmont posted third-quarter earnings that topped analyst expectations, even as gold prices saw historic drops this week. The miner’s results were overshadowed by concerns over higher spending and weaker output forecasts that weighed on its stock ahead of the market open.
BNN Bloomberg spoke with Scott Bauer, chief executive officer of Prosper Trading Academy, who said the pullback in Newmont shares may present a buying opportunity as the company looks to benefit from cost-saving measures and stabilizing technical support levels.
Key Takeaways
- Newmont’s third-quarter profit topped estimates, supported by cost control efforts despite falling gold prices.
- Investors reacted cautiously to warnings of lower cash flow and higher capital spending in the fourth quarter.
- The miner expects 2026 production at the lower end of its earlier forecast following its Newcrest restructuring.
- Bauer said market expectations were too high given record gold prices, but the pullback resets valuations.
- He believes cost savings and strong technical support levels make this an attractive entry point for investors.
Read the full transcript below:
ROGER: Mining company Newmont released earnings that beat expectations amid historic drops in gold prices this week, but the stock is under pressure this morning. Here to talk more about the numbers is Scott Bauer, chief executive officer of Prosper Trading. Scott, thanks very much for joining us.
SCOTT: Of course, my pleasure.
ROGER: What do you think is driving the response today?
SCOTT: A couple of things. First, we’ve seen what the gold market in general has done over the last several days. Gold almost became similar to a meme stock in the sense that everybody — retail investors, institutions, central banks — piled into it. Did it reach really lofty levels? Yes, and that’s why we’re seeing a bit of a drawdown.
Now, specific to Newmont, which was also trading at those lofty levels, they actually had a really good report. However, they talked about lower production moving forward, and the cost-saving initiatives they’ve been implementing since their latest acquisition haven’t really taken hold yet. They’ve now pushed that out to 2026.
They also said they expect capital spending to increase quite significantly. So I think the market is looking at that and saying, “If gold is at record prices and you can’t deliver now, when can you?” To me, everything I see makes sense, but I think it’s actually a buying opportunity.
ROGER: Let’s go back for a second. What were some of the numbers you liked?
SCOTT: Free cash flow was down a bit, but they realized an average gold price of over $2,500 per ounce, up from about $1,500 a year earlier. Is that sustainable? Probably not — we don’t know if gold will stay at these levels.
Their production was fine, though it was a little lower because of maintenance shutdowns at a few mines and the completion of a project in Ghana. I see that as a one-off issue. Fundamentally and technically, this looks like an opportunity.
If we look at the charts, the stock is now near the $83–84 range, which has been major support around the 50-day moving average. I like the fundamentals, I like the technicals, and I think the metrics they missed on are behind them.
ROGER: You mentioned lower production and cost savings being delayed. What were their reasons for that?
SCOTT: They’re still working through costs from the Newcrest Mining deal. But their all-in costs for gold actually fell 2.8 per cent, which is really good. In their guidance, they said they expect to realize the full benefits of their cost-saving initiatives in 2026, with new guidance coming next year. So through all the short-term negativity, I think the outlook is strong.
ROGER: So overall, a yes?
SCOTT: Yes. Overall, I think this is a buying opportunity. It’s not just a “buy the dip” on the broader gold sell-off — specific to Newmont, both fundamentally and technically, this looks like a really interesting area where we could see a nice rebound.
ROGER: Any other companies you’re watching?
SCOTT: When I look at the space, I like to focus on the broader market. I watch ETFs like GLD, which tracks gold, and GDX, which tracks gold miners. From a trading perspective, it’s been the ultimate “buy the dip” over the past year. We’re in one of those dips now. At some point that trend will change, but so far, it’s been remarkably strong. So rather than a specific company, I prefer to look at those ETFs that capture the whole group.
ROGER: All right, we’ll leave it there. Scott, thanks very much for joining us.
SCOTT: Thank you so much.
ROGER: Scott Bauer, chief executive officer of Prosper Trading.
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This BNN Bloomberg summary and transcript of the Oct. 24, 2025 interview with Scott Bauer are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
