Newmont Corporation (NEM) Earnings & Analysis

Latest quarter

Newmont reported third-quarter 2026 revenue of $6.4 billion, above the $6.0 billion consensus. Adjusted earnings per share of $2.20 also exceeded the consensus of $1.94.

Revenue rose from $5.5 billion a year earlier, while diluted earnings per share increased to $2.35 from $1.67. Newmont’s filing attributed the increase in net income primarily to higher sales, largely reflecting higher realized gold and silver prices, partly offset by lower gold sales volumes and higher costs applicable to sales.

The filing said Cadia’s gold production fell as the operation continued to feel the effects of a seismic event. At Peñasquito, lower ore grade and mill recovery reduced gold production, while Merian produced more gold because of higher ore grade and an inventory drawdown.

Newmont’s gross margin rose to 66.3% from 64.7%, and operating margin increased to 49.7% from 46.6%. Free cash flow was $1.9 billion, compared with $1.7 billion a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the third-quarter earnings call, Newmont management said the company produced about 1,300,000 ounces of gold during the quarter. The company’s filing said higher realized gold and silver prices lifted sales from a year earlier, although lower gold sales volumes offset part of that increase.

Management said Newmont had repurchased more than 115,000,000 shares since February 2024. It also said the company had returned about $1.9 billion to shareholders since its previous call.

Looking beyond the quarter, management expects unit costs to trend higher in 2027. Newmont expects lower silver output at Peñasquito to leave less silver income available to offset the cost of mining gold. Management also expects companywide labor costs to rise by more than the amount assumed for 2026.

For investment, management expects development capital in 2027 to be about $500.0 million higher than in 2026, mostly for Red Chris. Newmont expects construction there to ramp up in 2027, subject to board approval, with commercial production targeted for 2033.

Newmont’s filing said the Cadia seismic event continued to affect third-quarter production. The filing also said higher direct costs at sites including Boddington and Lihir, along with higher royalties at Nevada Gold Mines and Ahafo South, contributed to the increase in costs applicable to sales. The company expects higher production at Lihir in the fourth quarter after planned maintenance and access to higher-grade ore.

Guidance

Newmont lowered its 2026 outlook for all-in sustaining costs by about 10.0% from the guidance it gave at the start of the year. The company expects lower silver output at Peñasquito to contribute to higher unit costs in 2027.