NEM — Newmont Corporation

Newmont Corporation (NEM) Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Gold Production: 1.3 million ounces, along with 17,000 tonnes of copper and 7 million ounces of silver.
• Cash Flow: Generated $2.9 billion from operations and a record $2.2 billion in free cash flow for the quarter.
• Adjusted EBITDA: $3.8 billion.
• Adjusted Net Income: $2.10 per share.
• Gold Price Realized: Average of $4,414 per ounce.
• Shareholder Returns: Returned approximately $1.9 billion to shareholders through dividends and share repurchases, with over 100 million shares repurchased since the program's inception.

2. Strategic Updates and Business Highlights

• Leadership Changes: New executive appointments aimed at enhancing operational and financial performance, including Brian Tabolt as CFO and Mark Rodgers as COO.
• Project Developments:
  • Red Chris block cave project received regulatory approvals, moving towards feasibility study completion.
  • Cadia recovery efforts post-seismic event are progressing, with production resuming in mid-June.
• Operational Efficiency: Focus on cost control and productivity improvements across the portfolio, including parking mining units without impacting production.

3. Forward Guidance and Outlook

• Production Guidance: On track to meet full-year 2026 production guidance, with expectations of 49% production in the first half and 51% in the second half.
• Cost Management: All-in sustaining costs remain within guidance at $1,621 per ounce, despite rising oil prices.
• Capital Expenditure: Sustaining capital expected to be 58% weighted towards the second half, with development capital at 63% for the same period.

4. Bad News, Challenges, or Points of Concern

• Cost Pressures: Increased oil prices are expected to impact costs in the second half, with ongoing monitoring of indirect costs such as explosives and labor.
• Regulatory and Operational Risks: Ongoing discussions with Barrick regarding joint venture management and unresolved legal issues could pose risks to operational stability.
• Geopolitical Risks: Concerns about the evolving political landscape in Ghana and its potential impact on operations.

5. Notable Q&A Insights

• Cost Management: Brian Tabolt acknowledged the potential for rising costs due to elevated oil prices, emphasizing ongoing monitoring and productivity initiatives to mitigate impacts.
• Production Pathway: Natascha Viljoen highlighted that while Cadia's new caves are important, other assets like Ahafo North and Cerro Negro will also contribute to production increases.
• Project Pipeline: Discussion on the balance between brownfields and greenfields projects, with a focus on capital-efficient expansions in existing operations.
• Regulatory Engagement: Active discussions with the Ghanaian government to ensure stability and protect shareholder interests were emphasized as a priority.

Overall, Newmont's Q2 2026 results reflect strong operational performance and financial discipline, with strategic initiatives in place to navigate cost pressures and enhance shareholder value. However, challenges related to rising costs and geopolitical risks remain points of concern.