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    NEM
    Earnings call· Jun 2026(Q2 FY26)

    NEWMONT Corp /DE/ NEM

    Jul 23, 2026 Source

    Executive summary

    Newmont Q2 FY26 — Strong Operational Performance Drives Record Free Cash Flow and Shareholder Returns

    Newmont delivered a strong second quarter, exceeding production expectations and generating record free cash flow, driven by disciplined execution and cost management. The company remains on track to meet its full-year guidance, supported by a renewed executive leadership team focused on operational excellence and strategic capital allocation. While navigating external cost pressures and working capital variability, Newmont continues to prioritize shareholder returns and advance its world-class project pipeline.

    Highlights

    5

    • Produced 1.3 million ounces of gold, 17,000 tonnes of copper, and 7 million ounces of silver from the full portfolio in Q2 FY26.

    • Generated a second quarter record of $2.2 billion in free cash flow.

    • Returned approximately $1.9 billion to shareholders since the last earnings call through dividends and share repurchases.

    • Reduced share count by over 100 million shares, or approximately 9%, since the repurchase program began over two years ago.

    • Red Chris block cave project received key regulatory approvals, including an amended Environmental Assessment Certificate.

    Concerns

    4

    • Higher oil prices contributed to an expected increase in second quarter costs, with a potential $60 million impact for every $10 per barrel change in oil price on a full-year basis.

    • Working capital was a modest use of cash during the quarter, primarily reflecting reclamation spending, inventory builds, and timing of cash tax payments.

    • Cadia's PC1-2 cave establishment remains halted pending regulatory approvals following the April seismic event, though operating caves have resumed.

    • Ongoing discussions with Barrick regarding the Nevada Gold Mines joint venture have several key issues still unresolved, including the proposed IPO and contribution process for excluded properties.

    Guidance & targets

    10
    CategoryTargetConfidence
    Full Year 2026 Production
    On track to achieve full year 2026 guidance
    high materiality
    High
    Full Year 2026 Production Weighting (H1 vs H2)
    Approximately 49% in H1, 51% in H2
    medium materiality
    High
    Q3 FY26 Total Portfolio Production
    Broadly in line with Q2 FY26
    medium materiality
    High
    Q4 FY26 Total Portfolio Production
    Strongest of the year
    medium materiality
    High
    Full Year 2026 Capital Spend
    On track to land within guidance ranges
    high materiality
    High
    Full Year 2026 Sustaining Capital Weighting (H2)
    Approximately 58% weighted towards H2
    medium materiality
    High
    Full Year 2026 Development Capital Weighting (H2)
    63% weighted to H2
    medium materiality
    High
    Annual Dividend Increase
    $0.01 per share increase (to $0.27/share quarterly)
    medium materiality
    Medium
    Annual Dividend Increase Percentage
    8% increase
    medium materiality
    Medium
    Multi-year Guidance
    Reviewing guidance approach
    high materiality
    Medium

    Segment performance

    10
    SegmentRevenueYoYQoQMargin
    Yanacocha
    Ounces were produced earlier than planned, contributing to Q2 performance. Reclamation spending was a use of cash.
    Ounces produced earlier than planned: 50,000 ounces (part of total)
    		————
    Lihir
    Delivered a stronger quarter due to ongoing asset reliability work, contributing to earlier-than-expected ounces. Mobilization of the Nearshore Barrier will ramp up in Q3, unlocking access to over 5 million ounces starting in 2028. Planned maintenance in Q3.
    Ounces produced earlier than planned: 50,000 ounces (part of total)Asset reliability: Stronger quarter due to ongoing workCost and labor: ReductionNearshore Barrier mobilization: Ramping up in Q3 FY26Access to ounces (Nearshore Barrier): >5 million ounces beginning 2028
    		————
    Red Chris
    Block cave project received key regulatory approvals. Feasibility study is advancing towards Board approval and FID. Seasonal surface construction activity is expected to increase in H2 FY26.
    Regulatory approvals: Received key approvals (amended Environmental Assessment Certificate)Feasibility study: Advancing towards completionSeasonal surface construction: Increased activity in H2 FY26
    		————
    Cadia
    Production from operating caves resumed in mid-June following the April seismic event. Development rates at PC1-2 returned to normal, but cave establishment for new caves is pending regulatory approvals. Development spending is expected to increase in H2 FY26.
    Production from operating caves: Resumed in mid-JuneDevelopment rates at PC1-2: Returned to normal levelsCave establishment (PC1-2, PC2-3): Halted, awaiting regulatory approvals to restartDevelopment spending: Expected to increase in H2 FY26
    		————
    Cerro Negro
    More efficient pre-start activities increased underground productive time. Increased spend for expansion is expected in H2 FY26.
    Underground productive time: Increased by approximately 15% per shiftExpansion: Increased spend in H2 FY26
    		————
    Ahafo North
    Made targeted investments to operationalize and improve milling efficiency. Expected to reach full run rate in Q4 FY26, with long-term production of 350,000 ounces.
    Milling efficiency: Improved through targeted investmentsRun rate: Reaches full run rate in Q4 FY26Long-term production: 350,000 ounces
    		————
    Merian
    Improved road conditions and overall wet weather preparedness to optimize existing equipment performance during the rainy season.
    Road conditions and wet weather preparedness: Improved to optimize existing equipment performance
    		————
    Boddington
    Key programs for tailings projects are expected in H2 FY26. Expected to be in high-grade areas.
    Tailings projects: Key programs in H2 FY26
    		————
    Tanami
    Ongoing ventilation work is expected in H2 FY26. The second expansion is progressing to plan, with all underground infrastructure expected to be completed by the end of Q3 FY26.
    Ventilation work: Ongoing in H2 FY26Second expansion: Progressing to planUnderground infrastructure (second expansion): Expected to be completed by end of Q3 FY26
    		————
    Brucejack
    Seasonal surface construction activity is expected to increase in H2 FY26. Identified a 'dozer zone' near existing infrastructure, offering a brownfield opportunity.
    Seasonal surface construction: Increased activity in H2 FY26Dozer zone: Identified just over 700 meters from existing infrastructure
    		————

    Operational metrics

    25
    Gold Production
    1.3 million
    Q2 FY26

    Total gold production for the quarter.

    Copper Production
    17,000
    Q2 FY26

    Total copper production for the quarter.

    Silver Production
    7 million
    Q2 FY26

    Total silver production for the quarter.

    Adjusted EBITDA
    $3.8 billion
    Q2 FY26

    Adjusted EBITDA for the quarter.

    Adjusted Net Income per Share
    $2.10
    Q2 FY26

    Adjusted net income on a per share basis.

    Realized Gold Price
    $4,414up approximately $1,100 per ounce YoY
    Q2 FY26

    Average realized gold price for the quarter, showing a significant year-over-year increase.

    Cost Applicable to Sales (CAS) Increase
    4%YoY
    Q2 FY26

    Absolute cost applicable to sales increased year-over-year, despite higher realized gold prices.

    Working Capital Impact
    modest use of cash
    Q2 FY26

    Working capital was a net use of cash, with some offsetting favorable movements.

    Shareholder Returns (since last call)
    $1.9 billion
    Since last earnings call

    Total capital returned to shareholders through dividends and share repurchases.

    Shareholder Returns (Q2 FY26)
    $1.8 billion
    Q2 FY26

    Capital returned to shareholders during the calendar quarter.

    Net Cash Position
    $3.4 billionmodestly above upper end of target range
    Q2 FY26 end

    Net cash balance at the end of the quarter, exceeding the upper end of the target range.

    Sustaining Capital Investment
    $438 million
    Q2 FY26

    Investment in sustaining capital for the quarter.

    Full Year 2026 Sustaining Capital Guidance
    $1.95 billionon track to meet
    FY26

    Company remains on track to meet its full year sustaining capital guidance.

    Dividend Declared
    $0.26unchanged from prior quarter
    Q2 FY26

    Quarterly dividend declared.

    Development Capital Investment
    $285 million
    Q2 FY26

    Investment in development capital for the quarter.

    Full Year 2026 Development Capital Guidance
    $1.4 billionunchanged
    FY26

    Full year development capital guidance remains unchanged.

    Share Repurchases (since last call)
    $1.7 billion
    Since last earnings call

    Amount of shares repurchased under the current authorization.

    Share Repurchases (July to date)
    $600 million
    July to date

    Amount of shares repurchased in July.

    Remaining Share Repurchase Authorization
    $4.3 billion
    Current

    Remaining amount under the current share repurchase authorization.

    Total Shares Repurchased (since program inception)
    100 million
    Since program inception (over 2 years ago)

    Total number of shares repurchased, marking a significant milestone.

    Share Count Reduction
    9%
    Since program inception (over 2 years ago)

    Percentage reduction in share count due to repurchases.

    Oil Price Impact on Full Year
    $60 millionfor every $10 per barrel change
    Full year

    Estimated financial impact of oil price fluctuations on a full-year basis.

    Sustaining Capital Increase
    $150 millionquarter-over-quarter increase
    Q3 FY26

    Expected increase in sustaining capital from Q2 to Q3, contributing to higher unit costs.

    Mining Production Units Parked
    nearly 50
    Current

    Number of mining production units parked without affecting production, as part of productivity initiatives.

    Contract Utilization Reduction
    reduced where possible
    Current

    Efforts to reduce contract utilization to control costs.

    Industry KPIs

    3
    MetricValueDetails
    By product credits—
    All in sustaining cost$1,621USD per ounce
    Production sales volume by metal and by mine1.3 million ounces gold, 17,000 tonnes copper, 7 million ounces silver

    Deals & partnerships

    2
    BarrickNevada Gold Mines (NGM) joint venture management and operations

    Active engagement with Barrick to find mutually acceptable solutions regarding diverging legal, technical, and commercial views on JV management, past performance, proposed IPO, and contribution process for excluded properties. Newmont has issued a notice of default and is committed to protecting shareholder rights. Several key issues remain unresolved.

    Canadian government (Major Project Office)Investment/grant for Red Chris project$500 million

    The Canadian government is providing a $500 million investment for the Red Chris project. The full terms and conditions of the grant are still being worked out through an MOU with the Major Project Office.

    Capital programs

    5
    Red Chris Block Cave Projectunderway

    Received key regulatory approvals, including an amended Environmental Assessment Certificate. Advancing feasibility study towards Board approval and FID. Expected capital costs are higher than original Newcrest estimates due to inflation and productivity. FID envisaged towards year-end 2026 or early Q1 2027.

    Cadia Panel Cave Projects (PC1-2, PC2-3)underway
    Period spend: expected to increase in H2 FY26

    Benefit: Improved grades from new caves

    Development spending expected to increase in H2 FY26. PC2-3 is furthest developed, with cave establishment underway. Cave establishment for both PC1-2 and PC2-3 has been halted pending regulatory approvals to ensure safety after seismic event.

    Lihir Nearshore Barrierunderway
    Period spend: ramping up in Q3 FY26

    Benefit: Unlocking access to more than 5 million ounces

    Mobilization will ramp up in Q3 FY26, unlocking access to over 5 million ounces beginning in 2028.

    Tanami Second Expansionunderway

    Progressing to plan, with all underground infrastructure expected to be completed by the end of Q3 FY26. Ongoing ventilation work in H2 FY26.

    Cerro Negro Expansionunderway
    Period spend: increased spend in H2 FY26

    Increased spend for the expansion is expected in H2 FY26.

    Risks & headwinds

    6
    Higher oil prices and diesel costsQ2 FY26, Q3 FY26, Full Year 2026

    Oil price at $100/barrel in Q2 FY26, expected to continue in Q3 FY26. $60 million impact on full-year for every $10/barrel change.

    Mitigation: Disciplined cost management, productivity initiatives (e.g., parking mining units, improving efficiency), monitoring geopolitical environment.

    Working capital variabilityQ2 FY26, H2 FY26

    Modest use of cash in Q2 FY26, primarily due to reclamation spending, inventory/stockpile builds, and timing of cash tax payments. Potential unwinding of receivable benefit in H2 FY26.

    Mitigation: Acknowledged as a natural fluctuation; company maintains strong net cash position to fund capital programs and returns.

    Cadia cave establishment delaysOngoing, restart later in the year

    Cave establishment at PC1-2 and PC2-3 halted pending regulatory approvals.

    Mitigation: Working with regulators, ensuring models are accurate, updating safety controls, learning from seismic event.

    Unresolved issues with Barrick JVOngoing

    Several key issues still unresolved regarding NGM JV management, proposed IPO, and contribution process.

    Mitigation: Active engagement with Barrick, notice of default issued, committed to protecting Newmont shareholders' rights and maximizing NGM performance.

    Inflationary environment (beyond fuel)Ongoing

    Indirect costs (explosives, cyanide, grinding media, labor, freight) being monitored.

    Mitigation: Monitoring supply chain closely, running scenarios for potential mitigating actions, no major concerns yet but watching stickiness of inflation.

    Higher unit costs in Q3 FY26Q3 FY26

    Moderately higher unit costs expected due to Q3 production broadly in line with Q2, coupled with planned $150 million quarter-over-quarter increase in sustaining capital.

    Mitigation: Focus on managing absolute costs, protecting margins, and maintaining discipline through higher capital spend.

    What to watch in Q3 FY26

    5

    Red Chris FID

    Year-end 2026 or early Q1 2027
    CurrentFeasibility study advancing, regulatory approvals received
    TargetBoard approval and final investment decision

    Why it matters

    This is a material project that will enhance Newmont's long-term strategy and is a key investment in the Golden Triangle area.

    My view on these projects, it is a material project that we are considering approving. So if we have to delay a month or 3 to make sure that we get everything right and that we've closed out on all of our items, that is something we will do. But when we get back to the market, make the commitment of the capital allocation, we will make sure that we can deliver against it both in time and capital.

    Q&A highlights

    7

    How are cost pressures, especially from elevated oil/diesel prices and freight, impacting H2 FY26, and can productivity improvements still offset them?

    Higher oil prices (around $100/barrel in Q2) contributed to CAS increase and are expected to continue impacting Q3 due to lag. For every $10/barrel oil price change, there's a $60 million full-year impact. Other indirect costs (explosives, cyanide, grinding media, labor, freight) are being monitored but are not major concerns yet. Productivity initiatives are ongoing to manage costs.

    “As it relates to oil price and diesel notably, obviously, today, with the oil price jumping up to $100 a barrel, we are watching and monitoring cost pressures across the business. Notably, in the second quarter, you'll see part of our CAS increase is driven by that fuel cost of about $100 a barrel that we experienced on average in the second quarter.”

    asked by Fahad Tariq · answered by Brian Tabolt

    3 min read8 chapters

    Detailed Narrative

    01

    Executive Leadership Appointments

    Newmont announced several executive leadership appointments, reinforcing its commitment to building a future-ready organization. Brian Tabolt was appointed EVP and CFO, Mark Rodgers as EVP and COO, Dave Thornton as EVP and CTO, and David Fry as EVP, Project Development. These appointments leverage internal talent and aim to strengthen financial, operational, technical, and project development expertise to deliver consistent performance and execute the company's strategy.

    02

    Red Chris Project Progress

    The Red Chris block cave project received key regulatory approvals from British Columbia, including an amended Environmental Assessment Certificate. This was achieved through a consent-based process with the Tahltan Nation, highlighting strong partnerships. The company is now focused on completing the feasibility study and advancing the project toward Board approval and final investment decisions, with an expected higher capital cost than previously estimated due to inflation and productivity.

    03

    Cadia Recovery and Restart Activities

    Following a seismic event on April 14, production from Cadia's operating caves resumed in mid-June. The team is completing ground support upgrades, and development rates at PC1-2 have returned to normal. However, cave establishment at both PC1-2 and PC2-3 remains halted pending regulatory approvals to ensure safety and incorporate lessons learned from the incident. The company expects no impact on full-year production guidance.

    04

    Lihir Performance and Nearshore Barrier Project

    Lihir delivered a stronger quarter due to ongoing asset reliability work, contributing to earlier-than-expected ounces. The team has achieved stability in mining operations, improved fixed asset reliability, and reduced costs. Mobilization of the Nearshore Barrier project at Lihir will ramp up in Q3 FY26, which is expected to unlock access to over 5 million ounces starting in 2028.

    05

    Productivity and Cost Control Initiatives

    Newmont remains focused on controlling its absolute cost base to maximize margins. Initiatives include parking nearly 50 mining production units without affecting output, increasing underground productive time by 15% per shift at Cerro Negro, improving milling efficiency at Ahafo North, and optimizing equipment performance at Merian. These site-led actions aim to offset external cost pressures, particularly from higher oil prices.

    06

    Capital Allocation Framework and Shareholder Returns

    The capital allocation framework balances reinvestment in the portfolio, financial flexibility, and returning excess cash to shareholders. The company returned approximately $1.8 billion in Q2 FY26 through dividends and share repurchases, marking the second consecutive quarter of returning over 80% of free cash flow. Newmont has repurchased over 100 million shares, reducing its share count by 9% since the program's inception.

    07

    Ghanaian Engagement and Future Investments

    Newmont is actively engaging with the Ghanaian government to develop joint objectives and ensure long-term investment stability. Discussions include developing a forward-looking agreement through a working group with the Minister of Lands. The company aims to protect shareholder interests and foster local economic development, addressing concerns around the evolving regulatory environment.

    08

    Nevada Gold Mines (NGM) Joint Venture Discussions

    Newmont has been actively engaging with Barrick to resolve diverging views on the NGM JV's management, past performance, proposed IPO, and contribution process for excluded properties. The company has issued a notice of default and remains committed to protecting its shareholders' rights and maximizing NGM's performance, despite several key issues remaining unresolved.

    AI-generated summary of the company’s earnings call. Not investment advice.