Australian gold stocks in focus as UBS flags earnings downgrade risk

Evolution Mining

01/06/2026 05:45

** Australian gold stocks in focus after UBS warns of potential FY27 earnings downgrades across the sector
** Gold sub-index .AXGD up as much as 2% at 16,612.9 earlier in the session, but currently trading higher by 0.5%
** UBS says softer gold prices and rising costs could drive 5%–20% downside to FY27 EPS estimates
** Flags margin compression risk as elevated cost bases likely to persist into FY27
** Recommends shift toward higher-quality, defensive names such as Newmont NEM.AX and Evolution Mining EVN.AX
** Says weaker spot gold prices combined with inflation-driven cost pressures pose near-term headwinds
** Notes market may be underestimating cost and capex pressures, with UBS above consensus on both
** AXGD down 13% so far this year, including the day's moves 

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.nair@thomsonreuters.com))