Earnings
Newmont beats forecasts with $2.20 adjusted EPS but expects fourth-quarter costs to peak as gold slides
The largest gold miner generated $1.9 billion of free cash flow in the third quarter, yet guides all-in costs to about $1,900 an ounce for the final quarter while bullion falls to a two-month low.
HedgeWeekly News Desk ·
Newmont reported adjusted net income of $2.31 billion, or $2.20 a diluted share, for the third quarter after the US close on Thursday, beating the $1.95 consensus figure cited by Investing.com. Sales came to $6.36 billion against expectations of $6.24 billion, and net income attributable to shareholders was $2.48 billion, or $2.35 a share. The stock, which had ended the regular session down 2.6% at $114.11, gained 1.7% to $116.10 in after-hours trading.
The company produced 1.302 million attributable ounces of gold at an average realised price of $4,317 an ounce, with by-product all-in sustaining costs (AISC) of $1,454 an ounce. Free cash flow reached $1.91 billion. Newmont said it has handed about $1.9 billion back to shareholders since its previous results, including $1.6 billion of buybacks, leaving $2.8 billion under its $6 billion repurchase authorisation, and it declared a quarterly dividend of $0.26 a share.
Newmont reaffirmed full-year output of about 5.26 million ounces and lowered its full-year AISC guidance to $1,520 an ounce, but its own fourth-quarter guide puts AISC at about $1,900, which finance chief Brian Tabolt said would be the year's highest. For 2027 it expects low-to-mid single-digit production growth, higher unit costs and roughly $500 million more development spending, largely for the Red Chris block cave in British Columbia. That project now carries a $4.2 billion to $4.8 billion capital estimate on a 100% basis, with a final investment decision expected in early 2027 and commercial production targeted for 2033.
For investors, the timing is the issue to watch. The quarter's $4,317 realised price sits well above where bullion trades now: spot gold fell 2.4% to about $4,041 an ounce on Thursday, its lowest in more than two months, as rising oil prices fed expectations of tighter monetary policy. Newmont's $3.24 billion net cash position is also stated before a planned $1.95 billion payment to Barrick in the fourth quarter under their amended Nevada Gold Mines agreement, so the final quarter combines peak unit costs, a softer gold price and a large one-off cash outflow. Management has said it will give more detail on Red Chris at the investment decision, expected in February.