TLDR
- Newmont delivered Q1 adjusted earnings per share of $2.90, surpassing analyst expectations of $2.18; revenues jumped 46% to reach $7.31 billion
- The gold producer achieved a record quarterly free cash flow of $3.1 billion while maintaining all-in sustaining costs at $1,029 per ounce, beneath annual guidance
- Operations at the Cadia mine were impacted by a magnitude 4.5 seismic event on April 14; underground activities are projected to reach approximately 80% capacity in five weeks
- The board authorized a fresh $6 billion stock repurchase program, marking the fourth such authorization since February 2024; cumulative buybacks total $6 billion over roughly two years
- The company maintains its 2026 production target of 5.3 million gold ounces despite anticipating Q2 output slightly below Q1 levels
Newmont (NEM) shares advanced 0.2% during Friday’s premarket session following the mining giant’s sixth consecutive quarter of surpassing earnings and revenue projections. The stock had already climbed 1.6% in Thursday’s extended trading session and carries approximately 11% gains year-to-date entering Friday’s regular session.
Adjusted earnings per share for the first quarter reached $2.90, more than doubling the prior year’s $1.25 figure and significantly exceeding Wall Street’s $2.18 consensus forecast. Revenues surged 46% on an annual basis to $7.31 billion, driven primarily by gold sales of $6.04 billion.
The company realized an average gold price of $4,900 per ounce during the quarter — representing a 16% increase from the fourth quarter of 2025.
Exceptional Cash Generation and Cost Control
Free cash flow reached an all-time quarterly high of $3.1 billion, achieved even after absorbing approximately $1.3 billion in cash tax obligations. Adjusted EBITDA totaled $5.2 billion for the period.
Gold all-in sustaining costs settled at $1,029 per ounce on a by-product basis, coming in below the company’s full-year guidance range. Leadership attributed this performance to improved pricing for co-products including silver and copper, combined with disciplined capital allocation.
Management is holding firm on full-year cost projections despite elevated energy prices. The company estimates that each $10 per barrel movement in oil prices translates to approximately $12 per ounce in AISC variation. Diesel fuel represents roughly 6% of direct operational expenses.
First quarter production totaled 1.3 million ounces of gold, 30,000 tons of copper, and 9 million ounces of silver. Multiple facilities exceeded expectations — including Cadia, Merian, Ahafo South, and Yanacocha, which all demonstrated enhanced production compared to the fourth quarter of 2025.
Seismic Activity at Cadia and Second Quarter Projections
A magnitude 4.5 earthquake occurring near the Australian Cadia facility on April 14 represents the primary short-term operational challenge. The incident resulted in no personnel injuries. Underground electrical and dewatering infrastructure has been fully restored, with regulatory clearance obtained to commence repair activities.
Underground restoration work is anticipated to span approximately five weeks, bringing Cadia back to roughly 80% operational capacity. Complete recovery is targeted for the conclusion of the second quarter. Q2 production is forecast to decline modestly versus Q1 due to a temporary interruption in mill feed supply, with normalized production levels resuming in the third quarter.
Sustaining capital expenditures are projected to increase during Q2, driven by summer season operations at Brucejack and Red Chris, mobile equipment acquisitions, and tailings infrastructure work at both Cadia and Boddington.
Regarding capital allocation, Newmont has executed $6 billion in share repurchases throughout the previous 24 months. Directors authorized an additional $6 billion repurchase program — representing the fourth such authorization implemented since February 2024. The company also declared a quarterly dividend of $0.26 per share, consistent with its annual dividend objective of $1.1 billion.
Newmont indicated it is evaluating the reinstatement of multi-year guidance and characterized 2026 as a “trough year,” projecting potential production improvements in 2027 stemming from higher-grade zones at Lihir, additional cave development at Cadia, and ongoing expansion at Ahafo North.
Gold futures stood at $4,724 per ounce as of Thursday’s close, reflecting a decline of approximately 12% from the January 29 record settlement of $5,354.80.
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