Newmont shrugs off 13% gold-price correction with record second-quarter free cash flow, tops earnings estimates

Newmont (NYSE: NEM) reported stronger-than-expected second-quarter earnings Thursday after the North American market close. The company said its earnings highlighted the resilience of its global portfolio despite lower gold prices and operational disruptions during the quarter.

The Denver-based miner reported net income of $2.2 billion, or $2.06 per diluted share, on revenue of $6.1 billion. Adjusted net income totaled $2.2 billion, or $2.10 per share, while adjusted EBITDA came in at $3.8 billion. The company also said it generated record second-quarter free cash flow of $2.2 billion

Newmont’s earnings beat analysts' consensus estimate of $1.98 per share

"Newmont delivered another quarter of strong operational and financial performance, producing approximately 1.3 million attributable gold ounces and generating record second-quarter free cash flow of $2.2 billion, while remaining on track to achieve our full-year 2026 guidance," said President and CEO Natascha Viljoen. "Supported by our strong balance sheet and consistent capital allocation framework, we returned $1.9 billion to shareholders through quarterly dividends and ongoing share repurchases executed since our last earnings call, while continuing to invest in the long-term strength of our business."

Although gold prices corrected sharply during the quarter, Newmont's realized gold price remained historically elevated at $4,414 an ounce. That was down from $4,900 an ounce in the first quarter but still well above the $3,320 an ounce realized during the same period last year. Gold sales totaled 1.20 million ounces during the quarter.

Attributable gold production totaled 1.29 million ounces, down just 1% from the first quarter despite production interruptions at the company's Cadia operation in Australia following seismic events. Lower output from Cadia, Ahafo South, Peñasquito and Yanacocha was partially offset by stronger production at Lihir, Boddington and the Pueblo Viejo joint venture. Newmont said operations at Cadia returned to normal levels by mid-June.

While production proved resilient, lower gold prices and operational disruptions pushed costs higher. Gold by-product all-in sustaining costs rose to $1,621 an ounce from $1,029 an ounce in the previous quarter, driven primarily by lower production volumes, higher sustaining capital spending and additional costs incurred at Cadia during the temporary shutdown. However, Newmont noted that year-to-date costs remain well below its full-year guidance.

Despite the increase in costs, Newmont continued to generate significant cash and return capital to shareholders. Since its last earnings report, the company has returned $1.9 billion through dividends and share repurchases, including $1.7 billion in share buybacks. Since February 2024, Newmont has reduced its outstanding share count by more than 100 million shares, or roughly 9%, increasing shareholders' exposure to future free cash flow generation.

The miner ended the quarter with $9.0 billion in cash, $13.0 billion in total liquidity and a net cash position of $3.4 billion. The company's board also declared a quarterly dividend of $0.26 per share, payable Sept. 28 to shareholders of record as of Sept. 3.

Newmont also highlighted progress on several long-term initiatives during the quarter, including receiving key regulatory approvals from the Province of British Columbia for the Red Chris Block Cave project. The approvals, including an amended Environmental Assessment Certificate completed through a consent-based process with the Tahltan Nation, mark an important milestone as the project advances toward a final investment decision.

Looking ahead, the senior producer reaffirmed its 2026 guidance, forecasting attributable gold production of approximately 5.26 million ounces with gold all-in sustaining costs of around $1,680 an ounce. The company expects production to be weighted slightly toward the second half of the year, with stronger output anticipated from Boddington, Tanami, Lihir, Cerro Negro and Brucejack. Third-quarter production is expected to be broadly in line with second-quarter levels.