TLDR
- Newmont delivered Q1 adjusted EPS of $2.90, significantly surpassing analyst expectations of $2.18; revenue jumped 46% year-over-year to $7.31 billion
- The mining giant generated a quarterly record of $3.1 billion in free cash flow while maintaining AISC at $1,029/oz, beneath annual guidance targets
- An earthquake measuring 4.5 magnitude impacted operations near the Cadia mining facility on April 14; underground activities are projected to reach approximately 80% capacity within a five-week period
- The company’s board greenlit an additional $6 billion stock buyback program, marking the fourth authorization since February 2024; Newmont has repurchased $6 billion worth of shares across roughly two years
- Management reaffirmed 2026 full-year production targets of 5.3 million gold ounces, though Q2 output is anticipated to dip modestly compared to Q1
Newmont (NEM) shares advanced 0.2% during Friday’s premarket session following the company’s announcement that it exceeded both earnings and revenue projections for the sixth consecutive quarter. The stock had already climbed 1.6% in Thursday’s after-hours trading and has accumulated an approximately 11% gain year-to-date entering Friday’s session.
Adjusted earnings per share for the first quarter registered at $2.90, representing more than double the $1.25 figure from the same period last year and comfortably exceeding the Wall Street consensus forecast of $2.18. Total revenue surged 46% on a year-over-year basis to $7.31 billion, with gold sales contributing $6.04 billion to that total.
The company achieved an average realized gold price of $4,900 per ounce throughout the quarter — representing a 16% increase compared to Q4 2025.
Exceptional Cash Generation and Cost Management
The mining company generated a quarterly record of $3.1 billion in free cash flow, achieved despite approximately $1.3 billion in cash tax obligations. Adjusted EBITDA reached $5.2 billion for the period.
Gold all-in sustaining costs (AISC) settled at $1,029 per ounce calculated on a by-product basis, performing better than the company’s full-year guidance range. Management attributed this performance to enhanced co-product pricing for silver and copper, combined with rigorous capital expenditure controls.
The organization is preserving its annual cost projections despite elevated energy costs. Each $10 per barrel fluctuation in oil prices is anticipated to influence AISC by approximately $12 per ounce. 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 operations exceeded expectations — Cadia, Merian, Ahafo South, and Yanacocha each demonstrated enhanced production compared to Q4 2025.
Seismic Event at Cadia and Second Quarter Projections
A seismic event measuring 4.5 magnitude occurring near the Cadia operation in Australia on April 14 represents the primary short-term operational challenge. No personnel were injured. Underground electrical and dewatering infrastructure has been fully restored, and the company secured regulatory clearance to commence repair operations.
Underground restoration efforts are projected to require approximately five weeks, bringing Cadia to around 80% operational capacity. Complete recovery is scheduled for the conclusion of Q2. Second quarter production is forecast to fall marginally below Q1 levels due to a brief interruption in mill feed supply, with standard production volumes resuming in Q3.
Sustaining capital expenditures are also projected to increase during Q2 driven by summer 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 share repurchases throughout the previous 24 months. The board authorized an additional $6 billion buyback program — representing the fourth such authorization since February 2024. A quarterly dividend distribution of $0.26 per share was also announced, consistent with the company’s annual dividend target of $1.1 billion.
Newmont indicated it is evaluating the potential reinstatement of multi-year guidance and characterized 2026 as a “trough year,” with possible production improvements in 2027 stemming from higher-grade zones at Lihir, additional caves at Cadia, and the ongoing expansion at Ahafo North.
Gold futures were trading at $4,724 per ounce as of Thursday, representing a decline of approximately 12% from the January 29 record closing price of $5,354.80.
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