This article first appeared on GuruFocus.
Gold Production: 1.3 million ounces.
Copper Production: 17,000 tonnes.
Silver Production: 7 million ounces.
Cash Flow from Operations: $2.9 billion after working capital.
Free Cash Flow: $2.2 billion, a second-quarter record.
Adjusted EBITDA: $3.8 billion.
Adjusted Net Income: $2.10 per share.
Average Realized Gold Price: $4,414 per ounce.
Gold All-in Sustaining Costs: $1,621 per ounce.
Shareholder Returns: $1.9 billion through dividends and share repurchases.
Share Repurchase Program: Over 100 million shares repurchased since inception.
Net Cash Position: $3.4 billion.
Sustaining Capital Investment: $438 million in the second quarter.
Development Capital Investment: $285 million in the second quarter.
Dividend Declared: $0.26 per share.
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Newmont Corp (NYSE:NEM) delivered a strong second quarter, producing 1.3 million ounces of gold, 17,000 tonnes of copper, and 7 million ounces of silver, supporting $2.9 billion in cash flow from operations.
The company achieved a second-quarter record of $2.2 billion in free cash flow and returned approximately $1.9 billion to shareholders through dividends and share repurchases.
Regulatory approvals for the Red Chris Block Cave project were secured, reflecting strong partnerships and commitment to responsible project advancement.
Operational performance was ahead of expectations, with notable contributions from Yanacocha and Lihir, leading to a revised production outlook with 51% expected in the second half.
Newmont Corp (NYSE:NEM) maintained a strong net cash position of $3.4 billion, demonstrating financial flexibility and resilience through commodity cycles.
Negative Points
Higher oil prices contributed to increased costs, with diesel prices impacting cost applicable to sales and all-in sustaining costs.
The company faces ongoing cost pressures from indirect expenses such as explosives, cyanide, and labor, which could affect future financial performance.
Development capital spending is expected to be 63% weighted to the second half of the year, reflecting potential challenges in project execution and timing.
The Cadia seismic event in April caused disruptions, with ongoing work required to secure regulatory approvals for cave establishment.
Inflationary pressures are expected to increase capital costs for projects like Red Chris, potentially impacting future financial outcomes.
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Q & A Highlights
Q: Can you provide an update on the cost pressures, particularly with oil prices and diesel costs, and how you plan to manage these in the second half of the year? A: Brian Tabolt, CFO, explained that with oil prices rising to $100 per barrel, Newmont is monitoring cost pressures closely. The second quarter saw cost increases due to higher fuel prices, and this trend is expected to continue into the third quarter. Each site has different arrangements for oil supply, which affects how quickly price changes impact costs. Newmont is also monitoring indirect costs like explosives and labor, with a $60 million impact expected for every $10 change in oil prices.
Q: What are the remaining milestones for the Red Chris project, and how are you addressing potential cost inflation? A: Natascha Viljoen, CEO, stated that with regulatory approvals in place, Newmont is focused on completing the feasibility study. The company anticipates higher capital costs due to inflation but is working on engineering and capital cost assessments to mitigate these. The timeline for construction and start-up will be finalized after the feasibility study, with a focus on ensuring the project meets Newmont’s standards and strategic goals.
Q: How is Newmont planning to achieve its production target of 6 million ounces, and what role does the Cadia cave ramp-up play in this? A: Natascha Viljoen noted that while Cadia’s new caves will contribute to production, Newmont is less reliant on them for the medium term. Other projects like Ahafo North, Cerro Negro, and Lihir are expected to ramp up production, contributing to the overall target. The focus is on optimizing existing operations and leveraging high-grade areas.
Q: Can you provide more details on the $500 million investment from the Canadian government for Red Chris? A: Natascha Viljoen mentioned that Newmont is working on a Memorandum of Understanding with the Canadian government to finalize the terms of the grant. The company is encouraged by the government’s confidence and support for the project, although specific details of the investment are still being determined.
Q: What are Newmont’s plans for its portfolio, and are there any potential divestments or non-core assets? A: Natascha Viljoen stated that Newmont is comfortable with its current portfolio of 12 operations, which can compete for capital and meet world-class standards. The company continuously evaluates its assets to ensure they deserve their place in the portfolio. While there are several brownfield and greenfield opportunities, Newmont is focused on capital-efficient growth and maintaining a strong asset base.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.