Newmont Corporation (NYSE: NEM) lowered its 2026 cost guidance on Thursday after a third quarter in which a recovering Cadia operation and stronger co-product volumes pulled unit costs well below the prior period.
Revenue for the three months ended September 30 came in at $6.36 billion, up from $6.12 billion in the second quarter, as higher gold sales volumes and stronger copper prices offset a softer realized gold price of $4,317 per ounce. Net income attributable to shareholders rose to $2.48 billion, or $2.35 per diluted share, from $2.20 billion, or $2.06 per share.
Adjusted net income was $2.31 billion, or $2.20 per share, compared with $2.10 per share last quarter. The gap between reported and adjusted figures stems largely from $215 million in tax-related adjustments, partly offset by a US$116 million reclamation charge tied to legacy sites.
Sponsored · Selkirk Copper Mines
Adjusted EBITDA climbed to $3.95 billion from $3.76 billion.
Cash generation moved the other way. Operating cash flow slipped to $2.77 billion as working capital absorbed US$565 million, and free cash flow fell 13% to $1.91 billion on heavier capital spending. Newmont ended the quarter with $8.83 billion in cash against $5.09 billion in debt, for a net cash position of $3.24 billion, down slightly from $3.41 billion at the end of June. That figure comes before a US$1.95 billion payment owed to Barrick in the fourth quarter under the amended Nevada Gold Mines agreement.
Share repurchases continued at pace, with $1.6 billion bought back since late July and $2.8 billion left on the current $6.0 billion authorization.
Attributable gold production edged up 1% to 1.30 million ounces. Gains at Cadia, Brucejack and Peñasquito were largely cancelled out by planned maintenance at Lihir and Boddington and mine sequencing at Yanacocha. Copper output rose 35% to 23,000 tonnes, while silver jumped 57% to 11 million ounces on higher grades at Peñasquito.
Gold by-product cash costs fell 20% to $832 per ounce, and all in sustaining costs dropped 10% to $1,454 per ounce, leaving a wide margin against the realized gold price. Full year guidance was cut to $925 and $1,520 per ounce, respectively, from $1,055 and $1,680.
Year to date production of 3.90 million ounces sits at 74% of the 5.26 million ounce target, and Newmont expects the fourth quarter to be its strongest at 1.37 million ounces, though drought conditions at Lihir pose a risk to that outlook. The final quarter also carries a guided AISC of US$1,900 per ounce as sustaining capital peaks and Peñasquito silver output roughly halves. Copper looks tighter, with 70,000 tonnes produced so far against full-year guidance of 102,000 tonnes.
Newmont also put numbers to its Red Chris block cave project in British Columbia, pegging development capital at US$4.2 billion to US$4.8 billion with a full funds investment decision now expected in early 2027. Commercial production is targeted for 2033.
Newmont last traded at $114.11 on the NYSE.
