Newmont Corporation (NYSE:NEM, TSX:NGT, ASX:NEM, XETRA:NMM) shares rose nearly 3% on Friday after the world’s largest gold miner posted stronger-than-expected first-quarter earnings and free cash flow, helped by higher gold prices, stronger production and lower costs.
The company also said it had exhausted its previous $6 billion share repurchase authorization and approved an additional $6 billion buyback program, underscoring confidence in cash generation despite cost pressures tied to higher oil prices and increased royalties in Ghana.
Adjusted earnings came in at $2.90 per share for the quarter, well above Jefferies’ estimate of $2.23 and the Visible Alpha consensus of $2.18.
Adjusted EBITDA rose to $5.15 billion, beating analyst expectations of about $4.4 billion, while free cash flow reached $3.14 billion, ahead of estimates of roughly $2.1 billion to $2.6 billion.
Jefferies described the results as a “strong earnings/FCF beat from the gold bellwether,” noting that higher gold prices and relatively stable costs supported margins across the sector.
Attributable gold production totaled 1.3 million ounces in the quarter, above analyst expectations of about 1.2 million ounces.
Cash costs fell to $541 per ounce, while all-in sustaining costs (AISC), a key industry metric, dropped to $1,029 per ounce, significantly below analyst expectations and supported by higher byproduct silver production and productivity improvements.
Newmont maintained its 2026 attributable gold production guidance at 5.26 million ounces, plus or minus 5%, and reiterated its AISC forecast of $1,680 per ounce and attributable capital expenditure guidance of $3.35 billion.
The company warned second-quarter costs would be “notably higher” than in the first quarter due to higher sustaining capital spending, lower silver production and increased operating costs at mines including Boddington, Tanami, Lihir and Peñasquito, as well as the full-quarter impact of Ghana’s higher royalty and elevated oil prices.
At its Cadia operation in Australia, Newmont said processing is continuing from surface stockpiles following last week’s earthquake, while underground rehabilitation is expected to be completed within five weeks. Production is expected to be lower in the second quarter before returning to normal levels in the third quarter.
Newmont ended the quarter with $8.8 billion in cash and a net cash balance of $3.2 billion after reducing gross debt and returning an additional $2.4 billion to shareholders through buybacks since February.