Newmont rides record gold prices to $3.1B in free cash flow in Q1

On Thursday, after the North American equity close, Newmont (NYSE: NEM) reported first-quarter net income of $3.3 billion, with adjusted earnings of $3.2 billion, or $2.90 per diluted share, nearly doubling from the previous quarter as the average realized gold price climbed to $4,900 per ounce.

The company’s earnings significantly beat analyst expectations, as consensus estimates called for $2.17 EPS.

The report shows that record earnings and cash flow were driven by significantly higher gold prices. The company reported a record realized gold price of $4,900 an ounce during the first three months of the year, compared to $2,944 an ounce reported last year.

At the same time, the company said that elevated copper and silver credits helped keep costs in line, with gold by-product all-in sustaining costs (AISC) totaling $1,029 per ounce.

The company said it will continue to reward shareholders as it improves its balance sheet. It returned $2.7 billion through dividends and share buybacks during the quarter and announced a new $6 billion share repurchase authorization after completing its previous program. It also declared a quarterly dividend of $0.26 per share.

Despite the strong earnings numbers, the company also highlighted falling production. It said its gold production declined by 10% in the first quarter compared to last year.

Newmont produced 1.3 million attributable gold ounces during the quarter, down from the prior period due to operational disruptions and lower grades at several key assets, including Boddington, Tanami, and Lihir. Despite the softer output, the company remains on track to meet its full-year guidance of roughly 5.3 million ounces.

"Newmont delivered strong operational and financial performance in the first quarter, producing approximately 1.3 million attributable gold ounces and generating an all-time record $3.1 billion in quarterly free cash flow, keeping us well on track to achieve our 2026 guidance," said Natascha Viljoen, Newmont's President and Chief Executive Officer, in the report. "Supported by our enhanced capital allocation framework, we have doubled the size of our share repurchase program with an additional $6.0 billion authorization, following the full execution of our previous program, under which we repurchased $2.4 billion of shares since the last earnings call. We look forward to building on this momentum in the second quarter and continue delivering sustainable returns to our shareholders."