Newmont (NEM) Stock Climbs on Strong Q1 Earnings Beat and Massive Buyback Authorization

Key Takeaways

• Newmont delivered Q1 adjusted EPS of $2.90, significantly exceeding analyst expectations of $2.18; total revenue surged 46% year-over-year to $7.31 billion
• Free cash flow reached an all-time quarterly high of $3.1 billion while all-in sustaining costs of $1,029 per ounce came in below annual guidance
• An April 14 earthquake measuring 4.5 magnitude impacted the Cadia mine in Australia; underground mining operations are projected to recover to approximately 80% capacity in five weeks
• The board greenlit a fresh $6 billion share buyback program, marking the fourth authorization since early 2024; cumulative buybacks have totaled $6 billion over approximately two years
• Management reaffirmed 2026 production targets of 5.3 million gold ounces despite anticipating Q2 output to fall marginally below Q1 levels

Shares of Newmont (NEM) advanced 0.2% during Friday’s premarket session following the mining giant’s announcement of its sixth consecutive quarter of surpassing both earnings and revenue projections. The stock had already climbed 1.6% in Thursday’s extended trading hours and carries a year-to-date gain of approximately 11% entering today’s session.

Newmont Corporation, NEM

First-quarter adjusted earnings per share reached $2.90, representing more than a twofold increase from the $1.25 reported in the same period last year and substantially exceeding the Street’s consensus estimate of $2.18. Top-line revenue jumped 46% on a year-over-year basis to $7.31 billion, with gold revenue contributing $6.04 billion to that total.

The company achieved an average realized gold price of $4,900 per ounce during the quarter — representing a 16% sequential increase from Q4 2025.

Exceptional Cash Generation and Cost Discipline

Newmont generated a company-record $3.1 billion in free cash flow for the quarter, even after absorbing approximately $1.3 billion in cash tax obligations. Adjusted EBITDA reached $5.2 billion.

All-in sustaining costs (AISC) on a by-product basis registered at $1,029 per ounce, coming in below the company’s full-year guidance corridor. Leadership attributed the favorable cost performance to improved pricing for co-products including silver and copper, combined with disciplined capital allocation.

Despite elevated energy prices, management maintained its annual cost outlook. The company estimates that each $10 per barrel movement in oil prices translates to approximately $12 per ounce in AISC impact. Diesel fuel represents roughly 6% of direct operational expenses.

First-quarter production totaled 1.3 million ounces of gold, 30,000 tons of copper, and 9 million ounces of silver. Multiple operations exceeded expectations — Cadia, Merian, Ahafo South, and Yanacocha all posted stronger production compared to Q4 2025.

Seismic Event at Cadia and Second Quarter Projections

The primary near-term operational challenge stems from a magnitude 4.5 seismic event that occurred near the Australian Cadia facility on April 14. No personnel injuries were reported. Underground electrical and water management systems have been successfully restored, and the company secured regulatory clearance to commence repair activities.

Underground restoration work is anticipated to require approximately five weeks, with Cadia expected to return to roughly 80% operational capacity. Complete recovery is targeted for late Q2. Second-quarter production is forecast to trail Q1 figures modestly due to a brief interruption in mill feed supply, with normal production rates resuming in the third quarter.

Sustaining capital expenditures are projected to increase during Q2 reflecting summer season activities at Brucejack and Red Chris sites, mobile equipment acquisitions, and tailings management initiatives at Cadia and Boddington.

Regarding capital allocation, Newmont has now repurchased $6 billion worth of shares throughout the preceding 24 months. The board authorized an additional $6 billion repurchase program — representing the fourth such authorization since February 2024. The company also declared a quarterly dividend of $0.26 per share, consistent with its annual dividend objective of $1.1 billion.

Newmont indicated it is evaluating the reinstatement of multi-year forward guidance and characterized 2026 as a “trough year,” with potential for enhanced production in 2027 driven by higher-grade zones at Lihir, new cave developments at Cadia, and continued expansion at Ahafo North.

Gold futures settled at $4,724 per ounce as of Thursday, representing a decline of approximately 12% from the January 29 record closing price of $5,354.80.

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