Newmont Reports Strong Q1 Earnings Amid Record Gold Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy NEM?
Source: seekingalpha
- Earnings Beat: Newmont reported a net income of $3.3 billion for Q1, with adjusted net income at $3.2 billion or $2.90 per share, significantly exceeding market expectations, showcasing strong financial performance supported by record gold prices despite lower production.
- Share Buyback Plan: The company announced a $6 billion share repurchase program, which not only boosts shareholder confidence but may also enhance earnings per share by reducing the number of shares outstanding, potentially driving the stock price higher.
- Production and Costs: Q1 attributable gold production fell to 1.3 million ounces from 1.54 million ounces year-over-year, while all-in sustaining costs dropped to $1,029 per ounce, primarily impacted by bushfires and heavy rainfall at the Boddington mine, indicating dual pressures of production challenges and cost control.
- Future Guidance: Newmont maintained its FY 2026 gold production guidance at 5.26 million ounces, expecting Q2 production to account for 23% of total attributable output, but warned that costs in Q2 would be notably higher than Q1 due to increased sustaining capital spending and operating costs, which could pressure profitability.
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Analyst Views on NEM
Wall Street analysts forecast NEM stock price to rise
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 107.610
Low
89.00
Averages
110.85
High
125.00
Current: 107.610
Low
89.00
Averages
110.85
High
125.00
About NEM
Newmont Corporation is a gold company and a producer of copper, zinc, lead, and silver with operations and/or assets in the Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea regions. The Company's operations include Brucejack, Red Chris, Penasquito, Merian, Cerro Negro, Yanacocha, Boddington, Tanami, Cadia, Lihir, Ahafo, and NGM. The Brucejack operation includes four mining leases and six core mineral claims which cover 8,169 acres (3,306 hectares) and 337 mineral claims covering 298,795 acres (120,918 hectares). The Red Chris operation includes five mining leases which cover 12,703 acres and 199 mineral claims, encompassing an area of 164,903 acres (66,734 hectares). Penasquito includes 20 mining concessions for operations comprising 113,231 acres (45,823 hectares) and 60 mining concessions for exploration of 107,456 acres (43,486 hectares). The Merian operation includes one right of exploitation encompassing an area of 41,687 acres (16,870 hectares).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Effective Cost Control: While sustaining costs are expected to rise due to increasing oil and gas prices, Newmont's all-in sustaining costs dropped to $1,029 per ounce, significantly lower than the average realization of $4,900 per ounce for gold sales, demonstrating effective cost management.
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