Key Highlights
- Newmont delivered Q1 adjusted EPS of $2.90, surpassing analyst expectations of $2.18; revenue jumped 46% to reach $7.31 billion
- Free cash flow reached a quarterly record of $3.1 billion while AISC registered at $1,029/oz, tracking below annual guidance
- A magnitude 4.5 earthquake occurred near the Cadia mine on April 14; underground operations are projected to reach approximately 80% capacity within a five-week timeframe
- The board greenlit a new $6 billion share repurchase authorization, marking the fourth such approval since February 2024; total buybacks have reached $6 billion across roughly 24 months
- Management maintains full-year 2026 production guidance of 5.3 million gold ounces, though Q2 output is anticipated to dip marginally versus Q1
Newmont (NEM) stock advanced 0.2% during Friday’s premarket session following the gold producer’s sixth consecutive quarter of earnings and revenue outperformance. Shares had already climbed 1.6% in Thursday’s after-hours trading, bringing year-to-date gains to approximately 11% entering the regular session.
Adjusted earnings per share for Q1 registered at $2.90, more than doubling the prior-year figure of $1.25 and significantly exceeding the $2.18 Wall Street consensus estimate. Revenue expanded 46% on a year-over-year basis to $7.31 billion, driven primarily by gold sales totaling $6.04 billion.
The company achieved an average realized gold price of $4,900 per ounce during the quarter — representing a 16% increase compared to Q4 2025.
Exceptional Cash Generation and Cost Control
Quarterly free cash flow established a new record at $3.1 billion, achieved despite approximately $1.3 billion in cash tax obligations. Adjusted EBITDA totaled $5.2 billion for the period.
Gold all-in sustaining costs (AISC) measured $1,029 per ounce on a by-product basis, performing favorably against the company’s full-year guidance corridor. Leadership attributed the performance to elevated co-product pricing for silver and copper alongside prudent capital allocation.
Management is preserving its annual cost guidance despite elevated energy prices. Each $10 per barrel fluctuation in oil prices translates to roughly $12 per ounce impact on AISC. Diesel represents approximately 6% of direct operating expenses.
Quarterly production reached 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 each demonstrated enhanced output relative to Q4 2025.
Seismic Event at Cadia and Second Quarter Projections
A magnitude 4.5 seismic event occurred in proximity to the Cadia operation in Australia on April 14, representing the primary near-term operational consideration. The incident resulted in zero injuries. Underground power infrastructure and dewatering systems have been successfully restored, with regulatory clearance granted to commence repair activities.
Underground restoration work is projected to span approximately five weeks, bringing Cadia back to roughly 80% operating capacity. Complete recovery is targeted for the conclusion of Q2. Second quarter production is forecast to register marginally below Q1 levels due to a brief interruption in mill feed supply, with normalized production levels resuming in Q3.
Sustaining capital expenditures are scheduled to increase during Q2, driven by seasonal operations at Brucejack and Red Chris, mobile equipment acquisitions, and tailings infrastructure projects at Cadia and Boddington.
Regarding capital allocation, Newmont has completed $6 billion in stock repurchases across the previous 24 months. Directors authorized a new $6 billion repurchase program — representing the fourth such authorization since February 2024. A quarterly dividend of $0.26 per share was declared, aligning with the company’s annual dividend target of $1.1 billion.
Leadership indicated consideration of reinstating multi-year guidance while characterizing 2026 as a “trough year,” with production enhancement opportunities emerging in 2027 from higher-grade zones at Lihir, additional cave development at Cadia, and continued expansion at Ahafo North.
Gold futures traded at $4,724 per ounce as of Thursday, representing approximately a 12% decline from the January 29 record settlement of $5,354.80.
