Newmont (NEM) Q1 FY26 earnings call: guidance and Q&A

What is the status and expected timeline for the notice of default issued to Nevada Gold Mines in February?

The period for the notice of default is open-ended, and Newmont is working with Barrick on operations and an orderly process for the default, including exercising audit rights. There is no set timeline, but they hope for a near-term resolution to ensure NGM operates at its highest level.

“The period of the notice of default is open ended, and we're working with them. As Natascha said earlier, to work on the operations, and we work through an orderly process on the notice of default, including exercising our audit rights, reviewing those findings. So it's really just an ongoing process at this point in time.”

asked by Tanya Jakusconek · answered by Peter Wexler

Which operations exceeded expectations in Q1, and should Q2 be considered the lowest production quarter before momentum builds?

Q1 outperformance was driven by Yanacocha (Quecher Main ore), Cadia (improved throughput/grade), Penasquito (higher silver production), and Ahafo South (higher mining rates). Q2 is expected to be slightly lower due to lower grades at Ahafo South, organic carbon treatment at Penasquito, and Cadia's recovery, with Q3 expected to be stronger.

“As we look into the second quarter, and we've depleted the Subika open pit stocks at Ahafo South, we do see lower grades coming from Apensu and Awonsu open pits. For Penasquito in this quarter, we will have some months that we are treating organic carbon. And therefore, we will also see lower silver production. And then, of course, as we've touched on earlier, we will see the recovery process that we are working through at Cadia. So therefore, a slightly lower quarter as expected, and we'll see that -- we'll see the third quarter coming back stronger.”

asked by Matthew Murphy · answered by Natascha Viljoen

Have there been discussions with Barrick about bringing Fourmile into the JV, and what is the grade of the stockpiles being processed at Cadia?

Newmont continues to collect information and conduct technical evaluations on Fourmile. The specific grade of Cadia's stockpiles was not immediately available but would be provided.

“Anita, we'll have to come back to you. I can't give you an indication, but I'll ask Neil to just give you the feedback on the grade.”

asked by Anita Soni · answered by Natascha Viljoen

What levers can Newmont pull to keep 2026 unit costs within guidance despite energy cost inflation, and how insulated is the company from broader supply chain pressures?

Levers include productivity improvements (e.g., parking equipment to reduce consumption) and continued cost discipline. The supply chain team works closely with suppliers, leveraging geographical spread to manage supply and costs. The full impact of increased fuel costs is not yet seen, but the same levers will be used.

“The one is in productivity where the best way for us to offset the increased cost pressures that we see from input costs through higher productivity. We have seen through the last quarter and going into this year, as an example, we have parked a high number of pieces of equipment right across all of our operations to help us to reduce consumption.”

asked by Lawson Winder · answered by Natascha Viljoen

Beyond energy, what are the trends in labor and reagents, and are there regional differences in inflationary pressures?

Labor is a continuous conversation with agreements coming up for renewal, but so far, agreements have been reached as planned. No specific inflationary pressures beyond those already discussed (energy, royalties, worker participation due to higher gold prices) were identified regionally.

“Labor is always a continuous conversation, and we do see our agreements with labor coming up for renewal on a continuous basis across all of the jurisdictions we operate in. So far, we have been able to get agreements in place with every -- in all of the areas that we were negotiating new agreements. So nothing more than what we have planned for and has been included in our guidance.”

asked by Joshua Wolfson · answered by Natascha Viljoen

Given the conducive M&A environment, what is Newmont's appetite for acquisitions?

Newmont's focus remains firmly on driving its own operations, pursuing brownfield opportunities, and ensuring any acquisition opportunities compete for capital within the broader portfolio. The current focus is internal.

“Our focus remains firmly firstly, on continuing to drive our own operations to be the best operators of these operations and to get them to operate in the way that they should. Then we have a number of brownfield opportunities, firstly, that we believe would be very value accretive for us.”

asked by Lawson Winder · answered by Natascha Viljoen

Can Newmont provide color on Ghana's request for mining operations to shift to local firms by year-end, including feasibility and cost implications?

Newmont has a long history in Ghana and is engaging constructively with the Minerals Commission and President Mahama. They are following a commercially and technically disciplined process. While local capability exists for some bulk mining, it's not feasible for all technically complex operations without impacting productivity and safety. Discussions are active and constructive.

“It depends on how you define mining operations, and there are certainly -- certain mining operations that there is good capacity and capability in Ghana. But other areas that's more technically complex, we -- that will both impact the productivity of our operations, the safety of our operations. We hold a very firm view on how we approach any of those areas.”

asked by Fahad Tariq · answered by Natascha Viljoen

Are there any identified supply chain shortages that could impact business outcomes, and is Cadia's outperformance on grade due to reconciliation or earlier access to higher-grade ore?

No identified supply chain shortages at this stage, but the company closely monitors primary and secondary impacts of energy prices. Cadia's higher grade is due to positive grade reconciliation within the existing PC2 cave, and this grade is expected to decrease as the cave's life ends.

“Daniel, it's -- what we're seeing is coming through the existing caves, PC2 specifically. So it is higher grade reconciliation. And we continue to expect this grade to decrease as we get to the end of this cave's life.”

asked by Daniel Morgan · answered by Natascha Viljoen

Does Newmont intend to reinstate medium-term guidance, and what are the major asset-level movements expected into 2027?

Newmont is considering reinstating multi-year guidance for 2027. Key movements for 2027 include Lihir entering high-grade areas, new caves at Cadia, Boddington completing pushbacks into high-grade areas, Ahafo North fully ramping up, continued productivity at Cerro Negro, and additional short-term production from Yanacocha. These are expected to build production beyond the 2026 trough.

“Lihir, we're starting to get into high-grade areas. That's part of the mine plan and part of the work that we've been doing there. Cadia, we see the new caves come on. Boddington as we complete the pushbacks and getting into high-grade areas. Ahafo North, getting -- fully ramping up.”

asked by Daniel Major · answered by Natascha Viljoen

What is the range of potential remedies and Newmont's rights under the JV agreement related to the notice of default for Nevada Gold Mines?

There is a range of possibilities, but discussing each is not practical. Newmont is working through an iterative process with Barrick to understand viewpoints. They hope for a meeting of the minds, but if not, other avenues would be followed according to the JV agreement. They hope to avoid third-party intervention.

“I think at the end of the day, if -- the best way to look at it is we're working through the process, as I told one of the other analysts. And we are going back and forth in this iterative process to try and understand exactly each other's viewpoint on what transpired and how things were working.”

asked by Bob Brackett · answered by Peter Wexler