Newmont Reported Strong Earnings and Cash Flow. The Stock Is Down. -- Barrons.com

By Al Root

Newmont reported better-than-expected second-quarter earnings, despite weaker gold prices and an earthquake. Cost control helped.

The gold miner announced earnings per share of $2.10 from sales of $6.1 billion Thursday evening. Wall Street was looking for $1.99 and $6.4 billion, respectively. A year ago, Newmont reported earnings per share of $1.25 from sales of $5.3 billion.

Sales were light, but net income likely matters more to investors. Still, shares dropped 1.6% on Friday to $93.19, while the S&P 500 rose less than 0.1%.

Overall, the quarter looks fine. Citi analyst Alexander Hacking said the quarter was "in line" in a Friday research note. The stock has also been strong in recent quarters. Through Thursday trading, Newmont shares were up almost 60% over the past 12 months, benefiting from the rise in gold prices.

Spot gold prices ended the second quarter above $4,000 per ounce, up from roughly $3,300 a year ago.

Newmont's average realized gold price in the quarter was $4,414, up from $3,320 in the second quarter of 2025, but down from $4,900 in the first quarter. Per-ounce production costs rose a little, sequentially and year over year, but that was a function of lower production.

All-in sustaining cost, however, was $1,621 per ounce, below the company's full-year guidance of $1,680 per ounce.

Newmont produced 1.29 million ounces in the quarter, down from 1.3 million in the first quarter and from 1.48 million a year ago. An April earthquake in Australia affected Newmont's production at its Cadia mine. Production has resumed. And importantly, the company says it is still on track to produce 5.3 million ounces this year.

"Newmont delivered another quarter of strong operational and financial performance...generating record second quarter free cash flow of $2.2 billion," said CEO Natascha Viljoen in a news release. "Supported by our strong balance sheet and consistent capital allocation framework, we returned $1.9 billion to shareholders through quarterly dividends and ongoing share repurchases executed since our last earnings call."

The company has repurchased more than $4 billion in stock in recent quarters. Since 2024, the share count is down by more than 100 million. Newmont had roughly 1.1 billion shares outstanding at the end of the first quarter.

Viljoen took over this year. Before joining Newmont in 2023, she ran Anglo American Platinum. Key jobs for her include improving efficiency while continuing to integrate the acquisitions of Newcrest Mining and Goldcorp. Newmont bought Newcrest in 2023. It combined with Goldcorp in 2019.

Higher second-half production and solid cost control should give investors some confidence that she is on her way to accomplishing those goals.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

July 24, 2026 16:26 ET (20:26 GMT)