Newmont Q1 Earnings Call Highlights

Key Points

• Newmont delivered exceptional first-quarter results with $3.1 billion of free cash flow (quarterly record), adjusted EBITDA of $5.2 billion, and first‑quarter gold AISC of $1,029/oz on a by‑product basis, keeping the company on track for its full‑year guidance.
• The April Cadia earthquake caused limited damage and no injuries; underground rehabilitation is expected to restore roughly 80% operating capacity in about five weeks with full recovery by the end of Q2, so Q2 production will be slightly below Q1 but full‑year guidance remains intact.
• Management prioritized shareholder returns, returning about $2.7 billion since the last call (including $2.4 billion of repurchases) and declaring a $0.26 quarterly dividend, while the board approved a new $6 billion share‑repurchase authorization.

Newmont NYSE: NEM reported first-quarter 2026 results it said keep the company on track to achieve its full-year guidance, highlighting record free cash flow generation, lower-than-guidance all-in sustaining costs, and additional capital returns to shareholders under its enhanced capital allocation framework.

Cadia earthquake update and operational headwinds

President and CEO Natascha Viljoen opened the call with an update on Cadia following a magnitude 4.5 earthquake near the operation on April 14. Viljoen said Newmont’s “immediate priority was the safety of our people,” adding that safety protocols worked as designed and that all underground personnel were moved to safe locations and brought to the surface in the hours following the event. She said there were no injuries.

Based on initial findings, Viljoen said damage “appears limited,” and that underground power and dewatering systems had been restored. She added the company received regulatory approval “earlier this week to begin repairs,” and that surface infrastructure, including tailings facilities, sustained no damage.

Operationally, Newmont is processing surface stockpiles and expects underground rehabilitation to take about five weeks. Viljoen said that should enable a return to about 80% operating capacity, with “full recovery expected by the end of the second quarter.” As a result, second-quarter production is expected to be lower due to a “short gap in mill feed,” with normal levels expected to resume in the third quarter.

First-quarter production and site-level drivers

Newmont reported first-quarter production of 1.3 million ounces of gold, 30,000 tons of copper, and 9 million ounces of silver. Viljoen said copper and silver volumes supported a favorable by-product cost profile, and noted Newmont’s position as the world’s third-largest silver producer, which benefited from a strong silver price environment.

Viljoen also pointed to several site-specific factors behind the quarter’s performance:

• Cadia: Higher gold and copper production versus the fourth quarter driven by improved throughput and favorable grades from the current panel cave.
• Merian: Higher production versus the fourth quarter as the mine begins accessing higher grades from the Merian 2 pit “as planned.”
• Ahafo South: Higher production due to higher mining rates and improved underground drawpoint availability.
• Yanacocha: Stronger leach performance from high grades out of Quecher Main.
• Peñasquito: Strong co-product volumes, particularly silver and zinc, as the mine processes stockpiles during the transition between Phase 7 and Phase 8.
• Ahafo North: Ramp-up continued “very well and in line with plan” in its first full year of commercial production.

Viljoen said the company managed through challenging conditions at multiple sites during the quarter, including bushfires at Boddington (with full throughput capacity restored for the second quarter), extreme snowfall at Brucejack, and record rainfall at Tanami.

Record free cash flow and cost performance

Interim CFO and Chief Legal Officer Peter Wexler said Newmont delivered “outstanding financial results,” citing adjusted EBITDA of $5.2 billion and adjusted net income of $2.90 per diluted share. The company generated $3.8 billion in cash flow from operations after working capital and a quarterly record $3.1 billion of free cash flow, even after approximately $1.3 billion in cash tax payments.

On costs, Wexler reported first-quarter gold all-in sustaining costs (AISC) of $1,029 per ounce on a by-product basis, below the company’s full-year guidance. He attributed the cost performance to stronger-than-expected co-product pricing and sales volumes, lower costs applicable to sales stemming from disciplined capital spending and timing of sustaining capital.

Management said it is maintaining full-year cost guidance despite higher energy prices and shifting supply chain dynamics. Wexler reminded investors that guidance provided in February assumed $70 per barrel Brent, with diesel representing about 6% of direct operating costs. He said each $10 per barrel change in oil prices is expected to impact costs by about $60 million, or roughly $12 per ounce on AISC. He added the company was not experiencing fuel availability disruptions and was working to mitigate price impacts through cost and productivity initiatives.

Wexler also reiterated the expected impact of Ghana’s sliding scale royalty on the company’s cost profile, describing it as an incremental headwind of approximately $25 per ounce in 2026.

Capital allocation: dividends, buybacks, and a new authorization

Newmont emphasized shareholder returns under its enhanced capital allocation framework. Viljoen said that since the prior earnings call, the company reduced debt by $42 million and returned $2.7 billion to shareholders through regular dividends and share repurchases, fully exhausting its previous repurchase authorization.

Wexler said Newmont repurchased $2.4 billion in shares since the last earnings call, bringing total repurchases to $6 billion since the company began buybacks roughly 24 months ago. The board approved a new $6 billion share repurchase authorization, which Wexler described as the fourth authorization since February 2024.

Under the framework, Wexler said the company prioritizes sustaining capital and dividends, then flexes development capital and balance sheet positioning, and allocates excess cash to repurchases. Newmont spent $381 million on sustaining capital and $239 million on development capital in the first quarter. The company declared a quarterly dividend of $0.26 per share, which Wexler said aligns with a “sustainable total cash dividend of $1.1 billion per year.”

Wexler said the framework targets net cash of $1 billion plus or minus $2 billion over the course of a year, and noted that on a per-share basis, free cash flow is already 6% higher than it would have been prior to the start of the repurchase program.

Outlook, project updates, and key Q&A themes

Looking ahead, Wexler said second-quarter production is expected to be “slightly below” the first quarter, while keeping the company on track for full-year production guidance of 5.3 million ounces. He said sustaining capital is expected to rise in the second quarter due to summer season activity at Brucejack and Red Chris, delivery of mobile equipment at multiple sites, and continued tailings work primarily at Cadia and Boddington. Development capital is also expected to increase beginning in the second quarter as the company progresses the Cerro Negro expansion, advances feasibility work at Red Chris, and begins spending later this year on the Lihir Nearshore Barrier project, with full-year development capital guidance of $1.4 billion weighted to the second half.

Management said second-quarter AISC is expected to be “notably higher” than the first quarter and more in line with February guidance, driven by higher sustaining capital, higher costs applicable to sales, and lower planned silver production.

On projects, Viljoen said work at Tanami Expansion 2 has fully resumed after a temporary pause, with the underground primary crusher commissioned and the materials handling system on track for completion by the end of the second quarter. She added that the company completed its investigation into a fatality at Tanami earlier in the year and is committed to sharing learnings across the organization and industry. At Cadia, Viljoen said PC23 and PC12 are progressing and “tracking to plan.”

During Q&A, analysts asked about Newmont’s Nevada Gold Mines joint venture with Barrick, including a notice of default issued in February. Viljoen said the company’s focus remains on improving joint venture performance and gathering information, including around Four Mile. Wexler said the default notice period is “open-ended” and described an “orderly process” involving audit rights, review of findings, and iterative information exchange, adding there is “no set timeline” but the parties hope to resolve matters in the near term. Asked about remedies and third-party intervention, Wexler said there are “a range of possibilities” and that third-party paths could vary, but Newmont hopes to avoid that outcome.

Other themes included cost pressures and supply chain availability. Viljoen said Newmont’s levers include productivity and cost discipline, citing efforts such as parking equipment to reduce consumption. She said the company has not identified supply shortages at this stage and is monitoring potential second- and third-order impacts. In response to questions about acquisitions, Viljoen said Newmont’s focus remains internal—improving operations and advancing brownfield opportunities—while noting any acquisition would have to compete for capital within the portfolio.

Viljoen also addressed questions regarding Ghana and the use of local contractors. She said the issue is not new and that Newmont has been working with the Minerals Commission over time, emphasizing a “commercially and technically disciplined” approach. She said there is local capability for certain mining activities, but that more technically complex areas could affect productivity and safety.

On longer-term visibility, Viljoen said the company is considering reinstating multi-year guidance and described 2026 as a “trough.” She cited potential 2027 moving parts including higher-grade areas at Lihir, new caves at Cadia, higher-grade areas at Boddington following pushbacks, continued ramp-up at Ahafo North, productivity work at Cerro Negro, and additional contributions from Yanacocha’s near-term mining plan.

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.

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