Newmont (NYSE:NEM) said it remains on track to meet its full-year 2026 guidance after reporting a stronger-than-expected second quarter, supported by stable operations, higher realized gold prices and disciplined cost control across its global mining portfolio.
President and CEO Natascha Viljoen said the company produced 1.3 million ounces of gold, 17,000 tons of copper and 7 million ounces of silver during the quarter. Newmont generated $2.9 billion in cash flow from operations after working capital and a second-quarter record $2.2 billion in free cash flow.
Executive Vice President and CFO Brian Tabolt said Newmont generated $3.8 billion of adjusted EBITDA and adjusted net income of $2.10 per share. The company realized an average gold price of $4,414 per ounce during the quarter.
Production Pulls Forward From Second Half
Viljoen said second-quarter operational performance was modestly ahead of expectations, largely because some ounces initially expected in the third quarter were produced earlier than planned. The key contributors were Yanacocha and Lihir, which together delivered roughly 50,000 ounces that had been expected in the second half.
Lihir benefited from ongoing asset reliability work, while Newmont also cited stable performance from its Nevada Gold Mines joint venture. The company now expects about 49% of full-year production to have been delivered in the first half and 51% in the second half.
Newmont expects third-quarter production across the portfolio to be broadly in line with the second quarter before increasing in the fourth quarter, which Viljoen said is still expected to be the company’s strongest quarter of the year. The fourth-quarter increase is expected as Lihir completes planned maintenance in the third quarter and Ahafo North reaches its full run rate.
During the Q&A session, Viljoen said Ahafo North’s long-term operating level is expected to be 350,000 ounces per year.
Costs Remain Within Guidance Despite Oil Pressure
Newmont said cost pressures increased during the second quarter, largely as expected, due in part to higher oil prices. Tabolt said gold all-in sustaining costs were $1,621 per ounce on a byproduct basis, below the company’s full-year guidance of $1,680 per ounce.
Tabolt said unit costs rose sequentially from the first quarter because of lower gold and silver production and sales volumes, lower byproduct contribution, higher Ghana royalties and higher diesel prices. He said Newmont continues to monitor oil-related pressures and their potential effects on explosives, cyanide, grinding media, labor, contractor spending and freight.
“For every $10 per barrel change in the price of oil, you’ll see on a full-year basis about a $60 million impact,” Tabolt said.
Viljoen highlighted several productivity initiatives aimed at offsetting external cost pressures, including parking nearly 50 mining production units across the portfolio without affecting production. She also cited increased underground productive time at Cerro Negro, milling efficiency improvements at Ahafo North, better wet-weather preparedness at Merian and reduced contract utilization where possible.
In response to analyst questions, Viljoen said open-pit operations with large fleets, including Boddington, Peñasquito, Lihir and Merian, are among the assets most exposed to energy costs. She said productivity improvements at those sites have reduced consumption.
Capital Spending Weighted to Second Half
Newmont expects sustaining capital spending to be about 58% weighted toward the second half of 2026, driven by the timing of work at Boddington and Cadia, ventilation work at Tanami and seasonal construction at Brucejack and Red Chris. Development capital is expected to be 63% weighted toward the second half, reflecting work at major projects and feasibility activity at Red Chris.
Tabolt said Newmont remains on track for full-year sustaining capital guidance of $1.95 billion and development capital guidance of $1.4 billion. He said sustaining capital is expected to increase by roughly $150 million from the second quarter to the third quarter, with a similar increase in development capital.
At Cadia, Viljoen said production from the operating caves resumed in mid-June following an April 14 seismic event. Development work has returned to normal levels at PC1-2, but cave establishment at PC1-2 and PC2-3 remains halted pending regulatory approvals and additional safety work.
Viljoen said the existing operating caves have returned to background seismicity, while cave establishment work naturally involves higher seismic activity and requires additional controls. Newmont continues to expect no impact on full-year production guidance from the Cadia event.
Red Chris Advances Toward Investment Decision
Newmont said the Red Chris block caving project received key regulatory approvals from the province of British Columbia, including an amended environmental assessment certificate through a consent-based process with the Tahltan Nation.
Viljoen said the company is now focused on completing the feasibility study and advancing the project toward board approval and a final investment decision. During the Q&A session, she said the project is undergoing internal technical and financial review to ensure it meets Newmont’s standards and hurdle rates.
She said expected capital costs are higher than the original numbers under Newcrest, primarily because of inflationary pressures across the project development sector. However, she said Newmont has used the feasibility process to improve design, reduce risk and improve economics, including lessons learned from a fall-of-ground incident last September.
Viljoen said Newmont expects to complete the review toward the end of the year for board consideration, but added that the company would delay “a month or three” if needed to ensure it can meet any capital and timing commitments.
Asked about a $500 million investment from the Canadian government, Viljoen said Newmont is still working on a memorandum of understanding with Canada’s major projects office to determine the terms and conditions of the grant.
Shareholder Returns and Portfolio Outlook
Newmont returned approximately $1.8 billion to shareholders during the quarter through dividends and share repurchases, and about $1.9 billion since its prior earnings call, including July repurchases. Tabolt said the company has returned more than 80% of free cash flow for two consecutive quarters.
The company declared a quarterly dividend of $0.26 per share. Tabolt said Newmont repurchased $1.7 billion of shares under the $6 billion authorization approved in April, including more than $600 million in July to date, leaving about $4.3 billion available. Since launching its repurchase program more than two years ago, Newmont has reduced its share count by more than 100 million shares, or approximately 9%.
Newmont ended the quarter with $3.4 billion of net cash, modestly above the upper end of its target range of $1 billion plus or minus $2 billion. Tabolt said the position may fluctuate as the company funds capital programs, pays dividends and returns excess cash through buybacks.
Viljoen also addressed Newmont’s discussions with Barrick over Nevada Gold Mines, saying the company has been engaged for several months to address legal, technical and commercial differences related to joint venture management, past performance, a proposed IPO and excluded property contribution processes. She said several key issues remain unresolved but that Newmont remains committed to protecting shareholder rights and enforcing its legal rights if required.
Looking ahead, Viljoen said Newmont’s 12 managed operations remain part of the portfolio as long as they compete for capital and fit the company’s definition of world-class assets. She pointed to brownfield opportunities at Lihir, Cerro Negro, Ahafo South, Ahafo North, Brucejack and Merian, while describing Wafi-Golpu as further out in the development pipeline.
Newmont said it plans to review how it provides guidance in February 2027, including the potential reestablishment of multi-year guidance.
About Newmont (NYSE:NEM)
Newmont Corporation (NYSE: NEM) is a leading global gold mining company engaged in the exploration, development, processing and reclamation of gold properties. The company’s core business centers on the production of gold, with additional byproduct metals produced from its operations. Newmont operates a portfolio of long?lived mines and development projects, and its activities span the full mine life cycle from early-stage exploration through to mining, milling and closure.
Founded in 1921 and headquartered in Greenwood Village, Colorado, Newmont has grown through organic development and strategic acquisitions.
