Business Context and Reporting Period
Company: Newmont Corp (NEM)
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: March 31, 2026
Business Overview: Newmont is the world's leading gold company with significant operations in the U.S., Australia, Papua New Guinea, Ghana, Suriname, Argentina, Peru, Mexico, and Canada. The company recently completed a major divestiture program in 2025, selling non-core assets including CC&V, Musselwhite, and Porcupine. In Q1 2026, the company declared commercial production at its Ahafo North project in Ghana.
Key Financial Metrics
| Metric (in millions, except per share) | Q1 2026 | Q1 2025 |
|---|---|---|
| Sales | $7,307 | $5,010 |
| Net Income (Attributable to Newmont) | $3,262 | $1,891 |
| Diluted EPS | $3.00 | $1.68 |
| Adjusted Net Income | $3,156 | $1,404 |
| Adjusted EBITDA | $5,154 | $2,629 |
| Operating Cash Flow | $3,785 | $2,031 |
| Free Cash Flow | $3,144 | $1,205 |
| Cash and Cash Equivalents | $8,775 | $4,698 |
| Total Liquidity | $12,775 | $11,647 |
| Debt (Carrying Value) | $5,079 | $5,115 |
| Net Debt (Cash) | $(3,243) | $(2,058) |
Material Changes vs. Prior Period
- Revenue Growth: Sales increased 46% to $7.3 billion, driven primarily by a 42% increase in average realized gold prices ($4,900/oz vs. $2,944/oz) and a 119% increase in silver sales. Gold sales volume decreased 15% year-over-year due to lower production at several sites and the impact of divestitures.
- Profitability: Net income attributable to stockholders rose 73% to $3.26 billion. This was fueled by higher sales and lower costs applicable to sales ($1.94 billion vs. $2.11 billion), the latter largely due to the absence of divested assets in the current period.
- Production Volumes: Consolidated gold production decreased to 1.231 million ounces (from 1.460 million). Attributable gold production was 1.301 million ounces. Copper, silver, lead, and zinc production volumes varied by site, with silver production increasing significantly.
- Divestiture Impact: The prior year included a $276 million gain on the sale of assets held for sale, which was absent in Q1 2026 as the divestment program was completed in 2025.
Guidance, Outlook, and Risks
- Capital Allocation: The Board authorized a new $6 billion stock repurchase program in April 2026. The company repurchased $1.895 billion of stock in Q1 2026 and declared a quarterly dividend of $0.26 per share.
- Operational Disruptions: A magnitude 4.5 earthquake near the Cadia operation in Australia in April 2026 temporarily suspended underground mining activities, with a resumption expected in Q2 2026. Bushfires at Boddington also impacted costs in the prior period.
- Joint Venture Tensions: Newmont notified Barrick and the Nevada Gold Mines (NGM) Board of evidence of mismanagement and diversion of resources, issuing a notice of default under the Nevada JV Agreement in February 2026.
- Regulatory and Tax Changes: The Revised Investment Agreement in Ghana expired on Dec 31, 2025, leading to a higher corporate tax rate (35%) and a new sliding-scale royalty regime (5%-12%) effective March 2026. The company is also facing ongoing legal proceedings regarding water treatment at Yanacocha (Peru) and environmental matters at Lihir (PNG) and Cadia (Australia).
- Market Risks: The company remains exposed to commodity price volatility, geopolitical tensions (Middle East, Ukraine, Venezuela), and foreign currency fluctuations, particularly the Australian and Canadian dollars.
Investor Verification Checklist
- Gold Price Sensitivity: Verify the sustainability of the $4,900/oz realized gold price and its impact on future margins given the high correlation between revenue and gold prices.
- NGM Joint Venture Status: Monitor the resolution of the dispute with Barrick regarding Nevada Gold Mines, as this represents a significant portion of Newmont's production and assets.
- Ghana Fiscal Regime: Assess the long-term impact of the new Ghanaian tax and royalty structure on the profitability of the Ahafo and Merian operations.
- Capital Expenditure Execution: Review progress on key development projects (Tanami Expansion 2, Cadia Panel Caves) and the impact of the Cadia earthquake on timelines and costs.
- Divestiture Proceeds: Confirm the receipt of remaining deferred consideration from 2025 divestitures (e.g., CC&V, Musselwhite) and the status of indemnification liabilities.