Newmont Corporation (NEM) — BATS 0/100 — 2026-07-23

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Summary based on Newmont Corporation earnings call on 2026-07-23

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Presentation

(1/6) Executive Leadership Appointments
• 👥 Newmont announced executive appointments including Brian Tabolt as CFO, Mark Rodgers as COO, Dave Thornton as CTO, and David Fry as EVP Project Development.
• 🛠️ The CTO role will bring together exploration, mining and mine planning, processing, asset management and digital capabilities to strengthen technical excellence.
• 🎯 Appointments are framed as building a future-ready organization with depth to execute strategy, cost and capital discipline, and portfolio stewardship.

(2/6) Second Quarter Operational and Cash Flow Highlights
• ⛏️ Newmont produced 1.3 million ounces of gold, 17,000 tonnes of copper and 7 million ounces of silver in the second quarter.
• 💰 Operations supported $2.9 billion of cash flow from operations after working capital and a second-quarter record $2.2 billion of free cash flow.
• 📈 Since the last call, including July repurchases, about $1.9 billion was returned to shareholders and over 100 million shares have been repurchased since the program began.

(3/6) Portfolio Milestones at Red Chris and Cadia
• 📋 Red Chris block cave received key British Columbia regulatory approvals, including an amended Environmental Assessment Certificate via a consent-based process with the Tahltan Nation.
• 🚧 Focus is now on completing the Red Chris feasibility study and advancing toward Board approval and a final investment decision.
• 🔄 Cadia recovery after the April 14 seismic event saw operating caves resume in mid-June, with no expected impact on full-year production guidance.

(4/6) Production Outlook and Cost Productivity Actions
• 📊 About 49% of full-year production was delivered in the first half, with Q3 expected broadly in line with Q2 before a stronger Q4 as Lihir completes maintenance and Ahafo North reaches full run rate.
• ⛽ Higher oil prices lifted Q2 costs as signaled, yet CAS and AISC remain within full-year guidance ranges.
• 🏭 Site-led actions include parking nearly 50 mining units, lifting Cerro Negro underground productive time about 15% per shift, milling investments at Ahafo North, and wet-weather readiness at Merian.

(5/6) Financial Results and Capital Allocation Framework
• 💵 Newmont generated $3.8 billion of adjusted EBITDA and adjusted net income of $2.10 per share, realizing $4,414 per ounce gold.
• 🏦 The capital allocation framework balances sustaining capital, development projects, a net cash target of $1 billion plus or minus $2 billion, and excess cash to buybacks.
• 📉 Since the last call $1.7 billion of shares were repurchased under the $6 billion authorization, leaving about $4.3 billion, with share count down more than 100 million or roughly 9% over two years.

(6/6) Closing Priorities and Barrick Joint Venture Stance
• ✅ Management remains on track for 2026 guidance with significant free cash flow funding investment, balance-sheet strength, and shareholder returns.
• ⚠️ Natascha referenced the notice of default and efforts to protect Newmont shareholder rights in discussions with Barrick over NGM management, the proposed IPO, and excluded properties.
• 🔒 Direct engagement is nearing its end with key issues unresolved, and management will not answer specific questions on the matter on the call.

Q&A

(1/20) Q&A: Second-half cost pressures from oil, diesel and freight
• ⛽ Brian said Q2 CAS already reflected roughly $100/bbl average fuel cost and that pressure is expected to continue into Q3 with a lag into diesel by site.
• 📦 Indirects such as explosives, cyanide, grinding media, labor/contractor spend and some freight impacts are being monitored, still largely in a monitoring stage on escalation.
• 📊 Sensitivity cited is about $60 million full-year impact per $10/bbl oil move, with potential knock-on indirect effects still being watched.

(2/20) Q&A: Form of Canadian government $500 million Red Chris support
• 📝 Natascha said Newmont is still working an MOU with Canada’s Major Project Office to determine full terms and conditions of the grant.
• 🇨🇦 Management feels encouraged by the Canadian government’s confidence in and support for the project.
• ℹ️ No additional detail was given on whether support is a loan, equity, or tax benefit beyond the ongoing grant MOU work.

(3/20) Q&A: Pathway back toward 6 million ounces and Cadia dependence
• 🧭 Natascha said medium-term production is less reliant on Cadia cave development, though PC2-3 should improve grades versus lower-grade PC1 output.
• ⬆️ Other levers cited include Ahafo North ramp-up, Cerro Negro, Tanami, Boddington high-grade areas, and Lihir Nearshore Barrier high-grade areas.
• 📅 PC2-3 is planned to be handed to the production team with last drawbells by year-end, while outstanding PC1-2 work continues.

(4/20) Q&A: Where cost inflation bites and which assets offset it
• 🚛 Largest energy impact is at big-fleet open pits such as Boddington and Peñasquito, with Lihir and Merian also highlighted.
• 🅿️ Productivity gains and parked equipment at those large sites have reduced consumption and help offset pressures.
• 📉 Every asset is pursuing cost focus and productivity, with higher ounces into next year also expected to help unit costs.

(5/20) Q&A: Latest view on Lihir performance trajectory
• 😊 Management is positive on Lihir, noting it contributed additional Q2 ounces with more stable mining and improved fixed-asset reliability.
• 💸 The site has seen reduced cost and labor and continued community relationship work, with the original turnaround plan starting to bear fruit.
• 🥇 Access to two high-grade areas plus processing stability should deliver grade benefits, and the Board visited in June to review progress.

(6/20) Q&A: Next projects competing for capital after Red Chris
• 🏗️ Brownfields opportunities are the first expansion targets because of lower risk and faster path to production across many assets.
• 📌 Examples include Lihir Nearshore Barrier, Cerro Negro expansion, Ghana options at Ahafo South underground and Ahafo North, plus near-mine success at Brucejack dozer zone and Merian.
• 🔍 Greenfields remain in development to identify the next best value-accretive project, with continued near-mine and other exploration investment.

(7/20) Q&A: Red Chris feasibility, FID milestones, capital inflation and timeline
• ✅ With main regulatory approvals behind them, Newmont is completing rigorous internal independent technical and financial feasibility reviews against hurdle rates and strategic fit.
• 📈 Capital is expected higher than original Newcrest numbers due to sector project inflation and productivity rates, partly offset by improved engineering, design lessons after the fall of ground, and better economics despite higher capital.
• 🗓️ Completion toward year-end for Board consideration is envisaged, with willingness to slip a month or three to close items before committing deliverable time and capital.

(8/20) Q&A: Ahafo North grade and operating levels into Q4 and beyond
• 📊 Long-term operating level for Ahafo North is about 350,000 ounces.
• ❓ The analyst clarified interest in fourth quarter this year as well as into 2027 after an initial wording mix-up.
• ℹ️ No additional quarterly grade waterfall beyond the 350,000-ounce operating level was provided in the answer.

(9/20) Q&A: Cadia restart status across operating and development caves
• 🔄 Two operating caves were fully back in production from mid-June.
• 🧱 Development work continues on new caves, but cave establishment remains halted pending restart approvals; PC2-3 still has seven drawbells and final cave maturity work.
• 🛡️ Teams are updating models, calibrating, and ensuring safety controls with the regulator before restarting cave establishment.

(10/20) Q&A: Why operating caves restarted but cave establishment needs more work
• 📉 Mature operating caves PC1 and PC2 have returned to background seismicity with no seismicity risk, unlike cave establishment phases.
• ⚠️ Cave development naturally involves seismic activity managed through trigger action response plans, reentry plans, and underground support systems.
• 📚 Lessons from the incidents are being incorporated to bring controls up to standard before restart, similar to learning from other events.

(11/20) Q&A: Second-half sustaining and development capital cadence
• ✅ Brian is confident in holding full-year sustaining and development capital guidance, with about $150 million Q2-to-Q3 uplift in sustaining and a similar development step-up.
• 🛠️ Sustaining uplift is driven by tailings at Boddington and Cadia, Cadia being back up, Tanami ventilation more in Q4, and summer construction at Brucejack and Red Chris.
• 📐 Development capital timing reflects deferred PC1-2 spend after the seismic event, Lihir Nearshore Barrier ramp-up in the second half, and higher Cerro Negro expansion spend.

(12/20) Q&A: Fourmile contribution math and processing-asset synergies
• ✔️ Natascha agreed the market should treat synergies from NGM operations, including processing, as an offset against any Newmont capital requirement on Fourmile.
• 🏭 Synergies out of NGM operations will contribute capital benefit and will be considered in the calculation.
• 📝 No detailed methodology for imputing processing-asset capital value was provided beyond confirming the offset principle.

(13/20) Q&A: Whether 2026 CapEx run-rate holds after Red Chris
• 📅 Brian clarified the $1.4 billion development figure is for 2026 only; Red Chris full-funds impact would sit on top when decided later this year or early Q1 2027.
• 🔮 An update on 2027 capital will come in February.
• ⚖️ Natascha noted other projects such as PC2-3 and TE2 will drop off in following years, an important sequencing offset to consider.

(14/20) Q&A: Ghana risk engagement and implications for Ahafo
• 🤝 Newmont has long-standing Ghana relationships and has been in active conversations, including Natascha engaging the President recently and the team meeting the Minister of Lands and Natural Resources.
• 📜 A working group with the Minister of Lands is being created to develop a forward-looking agreement supporting stability for potential future investments.
• 🎯 Talks aim at joint objectives balancing Ghanaian local economic development with protection of shareholder interests and long-term investment.

(15/20) Q&A: Timeline to reestablish multiyear guidance
• 📆 Newmont aims to review how it gives guidance in February next year, with the detailed approach still under development.
• 🔍 Meanwhile management will keep providing broader business insights, including a deeper exploration deep-dive next quarter.
• 📈 The intent is to grow understanding of the broader business while multiyear guidance design continues.

(16/20) Q&A: Net cash above target and second-half capital returns versus FCF
• 💵 Brian confirmed net cash is about $400 million above the high end of the target range.
• 🔄 Q2 working capital benefits and seasonality contributed, and the framework retains flexibility on excess cash and buybacks.
• 📉 There is potential to use that flexibility to return to the targeted net cash balance, which could allow returns to exceed free cash flow.

(17/20) Q&A: Notice of default legal enforcement timeline
• ⏱️ Natascha confirmed there is still no specific deadline or time line around legal enforcement of the notice of default.
• 🔁 The answer was a direct yes that the prior no-timeline position is still the case.
• 🚫 No additional enforcement milestones or dates were disclosed.

(18/20) Q&A: Portfolio shape, divestments and greenfield options
• 🧰 After roughly 18 months of work, all 12 operations can compete for capital and meet Newmont’s world-class asset definition, so management is comfortable keeping them while continually re-evaluating.
• 🌎 Greenfield pipeline includes projects in Peru and Chile and Wafi-Golpu, which is described as farther out on the outer end of the pipeline.
• 💵 Spending the right development capital to reach capital-allocation decision points is emphasized rather than labeling assets noncore for sale.

(19/20) Q&A: Broader inflation, tariffs and supply tightness beyond fuel
• 👁️ Brian said supply chain is monitored closely and there are no current availability concerns, though scenarios and mitigating actions are run.
• 📡 From a cost perspective Newmont remains on a monitoring brief regarding conflict duration, inflation stickiness through the supply chain, input costs and equipment capital dynamics.
• ✅ At the moment there are no major concerns, but monitoring continues like most companies.

(20/20) Q&A: Whether 2026 inflation assumption remains about 3%
• 📚 Brian said inflation assumptions are reviewed annually in guidance and budgeting; current positioning is discussed against that process.
• 🛢️ 2026 guidance assumed Brent at $70/bbl, and that dynamic has been volatile, implying some uptick from the oil component.
• 📉 Broader general inflation around the prior assumption is viewed as fairly fair, with a caveat that indirect spend could rise if high oil persists through the supply chain.