Newmont Corporation (NEM) posted stronger-than-expected first-quarter results on Thursday, beating analyst estimates on both earnings and revenue. The Denver-based gold miner also announced a new $6 billion share buyback program, but cautioned investors that costs are expected to rise and production to decline in the second quarter.
Earnings and Revenue Beat
Adjusted earnings for the first quarter came in at $2.90 per share, well above the $2.18 consensus estimate tracked by LSEG and up sharply from $1.25 in the same period last year. Revenue surged to $7.31 billion, compared with $5.01 billion a year earlier, driven by a rally in gold prices. The realized gold price jumped to $4,900 an ounce, up significantly from $2,090 in the year-ago quarter.
Production and Costs
Attributable gold production fell to 1.30 million ounces, down from 1.54 million ounces in the first quarter of 2025. The decline was attributed to bushfires at Boddington, mine sequencing, heavy rain at Tanami, and lower grades and maintenance issues at Lihir and Cerro Negro. All-in sustaining costs (AISC) for gold by-product dropped to $1,029 per ounce, compared with $1,394 a year earlier, reflecting higher gold prices and cost control measures.
Shareholder Returns
Newmont declared a quarterly dividend of $0.26 per share and authorized a new $6 billion share repurchase program, following the completion of its prior buyback plan. Since the last earnings call, the company has returned $2.7 billion to shareholders through buybacks and dividends. Free cash flow hit a record $3.1 billion in the quarter.
Second Quarter Outlook
Looking ahead, Newmont warned that the second quarter would see higher costs and lower output. The miner expects about 23% of its full-year attributable production to come in the second quarter, slightly below the first quarter's contribution. CEO Natascha Viljoen flagged energy costs as the top concern, noting that every $10 swing in oil prices impacts AISC by about $12 per ounce, or roughly $60 million annually. Brent crude topped $100 a barrel on Thursday.
Market Context and Risks
Gold prices hit all-time highs in the first quarter, boosting Newmont's margins and cash flow. However, bullion has slipped this week amid rising yields and a stronger dollar, both fueled by oil-linked inflation concerns. In Ghana, regulators have demanded that Newmont, AngloGold Ashanti, and Zijin transfer mining operations to local contractors by end-2026, with potential fines or mine closures for non-compliance. This underscores tighter government oversight in Africa's mining regions as metal prices remain elevated.
Financial Position
Newmont ended March with $8.8 billion in cash and a net cash position of $3.2 billion, providing ample firepower for continued share buybacks. The miner left its full-year production target unchanged at 5.3 million attributable gold ounces, with sustaining capital spending of $1.95 billion and development projects of $1.4 billion. Shares rose 1.8% in after-hours trading, following a regular close at $111.06.
