Key Takeaways
- Newmont delivered Q1 adjusted EPS of $2.90, crushing analyst expectations of $2.18; revenue surged 46% year-over-year to $7.31 billion
- The gold miner achieved a quarterly record of $3.1 billion in free cash flow with all-in sustaining costs of $1,029/oz, below annual guidance targets
- A 4.5 magnitude earthquake impacted the Cadia mine in Australia on April 14; management expects underground operations to reach approximately 80% capacity within five weeks
- The board greenlit a fresh $6 billion share buyback authorization—the fourth such program since February 2024; total repurchases have reached $6 billion over approximately 24 months
- Management reaffirmed full-year 2026 production targets of 5.3 million gold ounces despite anticipating Q2 output slightly below Q1 levels
Shares of Newmont (NEM) inched higher by 0.2% during Friday’s premarket session following the gold producer’s sixth consecutive quarter of earnings and revenue beats. The stock had already climbed 1.6% in Thursday’s after-hours trading and has posted approximately 11% gains year-to-date entering the session.
The company’s Q1 adjusted earnings per share reached $2.90, more than doubling the $1.25 recorded in the year-ago period and significantly exceeding the Wall Street consensus estimate of $2.18. Revenue jumped 46% from the prior year to $7.31 billion, with gold sales contributing $6.04 billion to that total.
The miner achieved an average realized gold price of $4,900 per ounce during the quarter—representing a 16% increase from Q4 2025.
Exceptional Cash Generation and Cost Control
Newmont generated a quarterly record of $3.1 billion in free cash flow, even after accounting for approximately $1.3 billion in cash tax obligations. Adjusted EBITDA reached $5.2 billion for the period.
Gold all-in sustaining costs (AISC) came in at $1,029 per ounce on a by-product basis, landing below the company’s full-year guidance range. Management attributed this performance to stronger co-product pricing for silver and copper, combined with disciplined capital allocation.
Despite facing elevated energy prices, the company is holding firm on its full-year cost projections. Management noted that each $10 per barrel movement in oil prices translates to approximately $12 per ounce in AISC impact. Diesel represents roughly 6% of direct operating 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—including Cadia, Merian, Ahafo South, and Yanacocha, which all posted improved performance compared to Q4 2025.
Seismic Event at Cadia and Second Quarter Projections
The primary near-term operational challenge stems from a magnitude 4.5 earthquake that struck near the Cadia operation in Australia on April 14. Fortunately, no injuries were reported. The company has successfully restored underground power and dewatering systems and has secured regulatory clearance to commence repairs.
Underground rehabilitation efforts are projected to take approximately five weeks, after which Cadia should operate at roughly 80% capacity. Management targets full operational recovery by the conclusion of Q2. Second-quarter production is anticipated to fall slightly short of Q1 levels due to a temporary gap in mill feed, with normal production rates resuming in Q3.
Sustaining capital expenditures are expected to increase in Q2, driven by summer season activities at Brucejack and Red Chris, mobile equipment deliveries, and tailings infrastructure work at Cadia and Boddington.
Regarding shareholder returns, Newmont has now repurchased $6 billion worth of stock over the past 24 months. The board has authorized a new $6 billion share repurchase program—marking the fourth such authorization since February 2024. The company also declared a quarterly dividend of $0.26 per share, consistent with its annual dividend target of $1.1 billion.
Management indicated it is evaluating the possibility of reinstating multi-year production guidance and characterized 2026 as a “trough year,” with potential for production growth in 2027. Expected drivers include higher-grade zones at Lihir, new cave developments at Cadia, and the ongoing ramp-up at Ahafo North.
Gold futures traded at $4,724 per ounce as of Thursday, representing a decline of approximately 12% from the January 29 record close of $5,354.80.
