NEWMONT CORP (NEM) Q1 2026 Earnings Call Transcript
Neutral Gold 137.94B USA
Next Earnings
2026-04-22
There is no Profile data available for NMM.SG.
Newmont delivered strong 2025 results, announced a disciplined, cycle-friendly capital framework, and set 2026 guidance focused on margin expansion and predictable shareholder returns amid a trough production year.
⭐ Key Highlights
Enhanced capital allocation framework
Newmont introduced a sustainable framework prioritizing sustaining capital and a growing dividend, with share repurchases funded from excess cash and a target net cash range of $1 billion to $2 billion.
2025 results: strong cash generation and returns
Full-year 2025 delivered record earnings and free cash flow, with $7.3 billion of free cash flow and $3.4 billion returned to shareholders via dividends and buybacks.
2026 production plan and cost discipline
Guidance for 2026 calls for 5.3 million ounces of attributable gold production and all-in sustaining costs of about $1,680/oz, aided by cost reductions and ongoing capital discipline.
Major project progress and near-term growth options
Ahafo North commissioned to ~300,000 oz/year; Cadia panel caves progressing; Tanami Expansion 2 and nearshore Lihir barrier progressing; Red Chris feasibility due H2 2026; exploration success at Brucejack and Ahafo South signaling longer-term optionality.
Nevada Gold Mines JV under performance review
Newmont disclosed a default notice to Barrick related to Nevada Gold Mines performance, with ongoing discussions to improve district-wide optimization.
✔Positive Signals
- Capital allocation framework designed to grow per-share value and provide predictable returns
- Debt retirement and buyback programs contributing to shareholder value
- Strong 2025 free cash flow and robust project progression (Ahafo North, Cadia, Tanami, Lihir)
- G&A cost guidance improved by $100 million for 2026 (21% improvement)
- Exploration successes (Brucejack, Ahafo South) expanding long-term optionality
✖Negative Signals
- 2026 production trough due to planned mine sequencing
- Nevada Gold Mines JV performance issues and ongoing dispute with Barrick
- some long-cycle growth projects (e.g., Red Chris, Yanacocha sulfides) under review or deferred
- first-quarter 2026 tax burden and working capital pressures reducing near-term free cash flow
- potential upside capex sensitivity if further value-accretive opportunities arise
📊Financial Results
- Full-year 2025 free cash flow: $7.3 billion (record).
- Q4 2025 free cash flow: $2.8 billion.
- Dividends and share repurchases: $3.4 billion returned to shareholders in 2025.
- Proceeds from noncore divestitures: $4.5 billion to date in 2025.
- Net cash/outlook: target net cash of $1 billion +/- $2 billion; 2025 cost discipline contributed to lower G&A guidance by $100 million for 2026.
🔮Future Guidance
- 2026 all-in sustaining cost guidance about $1,680/oz (base case with $4,500/oz gold, $60/oz silver, $5/lb copper).
- All-in sustaining costs expected to be more than $100/oz lower than they would have been without 2025 cost-saving initiatives.
- Sustaining capital around $1.95 billion in 2026 (shifted from 2025), with roughly 52% in the second half.
- Development capital around $1.4 billion in 2026, with 55% weighted to the second half.
- Near-term capex flexibility to fund value-accretive opportunities (e.g., Merian, Red Chris) within the updated framework.
💡Interesting Insights
- The reserve base remains large and is supported by a high-value copper endowment, providing long-term optionality beyond gold alone.
Detailed Analysis
AI-generated summary of NEWMONT CORP earnings call transcript.
Newmont closed 2025 with execution momentum, achieving full-year guidance, generating robust free cash flow, and strengthening the balance sheet. The company introduced an enhanced capital allocation framework centered on a growing dividend, sustainable cash returns, and disciplined development and sustaining capital, with a target net cash range of $1 billion to $2 billion. 2026 guidance contemplates 5.3 million ounces of attributable gold production with all-in sustaining costs around $1,680 per ounce, reflecting cost discipline and planned mine sequencing that will create a trough in production before resuming growth in 2027 and beyond. The portfolio benefits from advancing major projects (Ahafo North, Cadia, Tanami Expansion 2, Lihir nearshore barrier) and ongoing exploration (Brucejack, Ahafo South), while sustaining capital and development spend is forecast to remain meaningful. The Nevada Gold Mines JV remains under improvement discussions with Barrick following a default notice, underscoring ongoing operational improvements. Management reaffirmed a long-term production target of ~6 million ounces of gold and ~150,000 tonnes of copper, contingent on disciplined capital allocation and value creation.
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