Q2 Free Cash Flow Slides 30% to $2.2 Billion on Softer Metal Prices

Newmont’s Q2 Free Cash Flow Slides 30% to $2.2 Billion on Softer Metal Prices

Newmont (NYSE: NEM) generated $6.12 billion in revenue during the second quarter of 2026 and $2.2 billion in net income, down from $7.31 billion and $3.26 billion respectively in the opening quarter of the year.

Diluted earnings landed at $2.06 per share against $3.00 three months earlier. Adjusted net income was $2.25 billion, or $2.10 per diluted share, versus $3.16 billion and $2.90 per share in the first quarter. Adjusted EBITDA fell to $3.76 billion from $5.15 billion.

Most of the swing traces back to pricing. Newmont’s average realized gold price was $4,414 per ounce, $486 below the first quarter mark, while realized silver pricing slipped to $53.49 per ounce from $66.78.

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Operating cash flow came in at $2.92 billion, down from $3.79 billion, with working capital consuming $90 million. Free cash flow of $2.21 billion was 30% lower than the first quarter, reflecting softer operating cash alongside $719 million of capital spending.

The balance sheet closed June with $9 billion in cash and $13 billion in total liquidity against $5.08 billion of debt, leaving a net cash position of $3.4 billion. Newmont returned $1.9 billion to shareholders since its April call, including $1.7 billion of buybacks, with $4.3 billion remaining under a $6 billion authorization. A quarterly dividend of $0.26 per share was also declared.

Share count has fallen by more than 100 million, or roughly 9%, since February 2024.

Attributable gold production of 1.293 million ounces was 1% below the prior quarter. First half output of 2.59 million ounces represents 49% of the 5.26 million ounce full year target, and management has shifted its second half weighting to 51% from the 52% guided in April after Yanacocha and Lihir pulled ounces forward.

Co-product volumes were the weak spot. Copper production dropped 43% to 17 thousand tonnes on the April seismic events at Cadia, which kept the operation below capacity until mid-June, while silver fell 22% to 7 million ounces on lower grade at Peñasquito. Year to date copper production of 47 thousand tonnes against a 102 thousand tonne annual target leaves a substantial catch-up for the back half.

Gold by-product costs applicable to sales rose 93% to $1,043 per ounce and all-in sustaining costs climbed 58% to $1,621. On a co-product basis, the two figures were $1,463 and $1,938, respectively.

Newmont last traded at $94.72 on the NYSE.

Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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