Key Takeaways
- Newmont delivered Q1 adjusted earnings of $2.90 per share, significantly surpassing analyst expectations of $2.18; revenues jumped 46% year-over-year to $7.31 billion
- The gold producer generated a quarterly record $3.1 billion in free cash flow while maintaining all-in sustaining costs at $1,029 per ounce, beneath annual guidance targets
- A 4.5 magnitude seismic event affected the Cadia mining facility on April 14; underground work is projected to reach approximately 80% capacity within a five-week timeframe
- The company’s board greenlit an additional $6 billion stock buyback program, marking the fourth authorization since early 2024; Newmont has repurchased $6 billion worth of shares over approximately two years
- Annual 2026 production targets of 5.3 million gold ounces remain unchanged, though Q2 output is anticipated to dip slightly compared to Q1 levels
Newmont (NEM) stock advanced 0.2% during Friday’s premarket session following the mining company’s announcement of its sixth consecutive quarter of surpassing both earnings and revenue projections. The shares had already climbed 1.6% in Thursday’s after-hours trading, bringing year-to-date gains to approximately 11% ahead of the opening bell.
Adjusted earnings per share for the first quarter reached $2.90, representing more than a doubling from the $1.25 reported in the same period last year and significantly exceeding the $2.18 analyst consensus forecast. Revenues increased 46% on a year-over-year basis to $7.31 billion, with Gold sales contributing $6.04 billion to that total.
The company achieved an average realized gold price of $4,900 per ounce during the quarter — representing a 16% increase compared to Q4 2025.
Impressive Cash Generation and Cost Control
Free cash flow reached an all-time quarterly high of $3.1 billion, even after absorbing approximately $1.3 billion in cash tax obligations. Adjusted EBITDA totaled $5.2 billion for the period.
All-in sustaining costs (AISC) on a by-product basis finished at $1,029 per ounce, coming in under the company’s full-year guidance range. Leadership attributed the strong cost performance to improved pricing for co-products — particularly silver and copper — combined with disciplined capital allocation.
The mining giant is preserving its annual cost projections despite elevated energy prices. Management noted that each $10 movement in oil prices per barrel translates to roughly a $12 per ounce impact on AISC. Diesel fuel represents approximately 6% of direct operating expenses.
First-quarter output totaled 1.3 million ounces of gold, 30,000 tons of copper, and 9 million ounces of silver. Multiple operations exceeded expectations — Cadia, Merian, Ahafo South, and Yanacocha all demonstrated enhanced production compared to Q4 2025.
Seismic Activity at Cadia and Second Quarter Projections
A 4.5 magnitude earthquake occurring near the Australian Cadia operation on April 14 represents the primary short-term operational challenge. The incident resulted in zero injuries. Underground electrical and water management systems have been fully restored, and the company secured regulatory clearance to commence repair work.
Underground restoration efforts are anticipated to require approximately five weeks, bringing Cadia back to roughly 80% operational capacity. Complete recovery is scheduled for the conclusion of Q2. Second-quarter production is forecast to decline modestly versus Q1 due to a brief interruption in mill feed supply, with normal production levels resuming in Q3.
Sustaining capital expenditures are also projected to increase during Q2 driven by summer operations at Brucejack and Red Chris, mobile equipment acquisitions, and tailings infrastructure work at Cadia and Boddington.
Regarding capital allocation, Newmont has now completed $6 billion in share repurchases across the previous 24 months. The board authorized a new $6 billion buyback program — representing its fourth such authorization since February 2024. A quarterly dividend payment of $0.26 per share was also announced, consistent with the company’s annual dividend target of $1.1 billion.
Newmont indicated it is evaluating the possibility of reintroducing multi-year guidance and characterized 2026 as a “trough year,” with potential production increases in 2027 driven by higher-grade zones at Lihir, new extraction caves at Cadia, and the ongoing expansion at Ahafo North.
Gold futures stood at $4,724 per ounce as of Thursday, reflecting a decline of approximately 12% from the January 29 record closing price of $5,354.80.
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