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Newmont Cuts 2026 Unit-Cost Guidance After $2.3 Billion Adjusted Profit, Pushes Red Chris Decision To Early 2027

The gold miner held production and spending targets and returned $1.9 billion to shareholders since its last call.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Newmont Cuts 2026 Unit-Cost Guidance After $2.3 Billion Adjusted Profit, Pushes Red Chris Decision To Early 2027

Newmont, the gold miner that also produces copper, silver, lead and zinc, posted adjusted net income of $2.3 billion, or $2.20 per diluted share, for the third quarter, and lowered its 2026 unit-cost guidance. In an 8-K filed Thursday, it also said the investment decision on its Red Chris copper-gold block cave project now comes in early 2027.

Costs down, output steady

Net income was $2.5 billion and adjusted EBITDA was $4.0 billion. Adjusted net income rose 3% from the second quarter. Attributable gold production was 1.3 million ounces, up 1% from the prior quarter, and the company kept its full-year target at 5.3 million ounces.

Gold by-product costs applicable to sales were $832 per ounce, and all-in sustaining costs were $1,454. Full-year guidance on those measures improved to $925 and $1,520. Capital spending guidance is unchanged.

CEO Natascha Viljoen said Newmont "remains on track to achieve our full-year 2026 production guidance and improved full-year cost outlook." The company expects unit costs to rise in the fourth quarter on higher sustaining capital and lower co-product volumes, and it is watching El Niño-related water supply at Lihir.

Cash, buybacks and the Barrick payment

Operating cash flow was $2.8 billion after a $565 million working-capital outflow, and free cash flow was $1.9 billion, down 13% from the second quarter. Newmont ended September with $8.8 billion of cash and a $3.2 billion net cash position.

Those balances come before a planned $1.95 billion payment to Barrick in the fourth quarter under the amended Nevada Gold Mines agreement. The amendment brings in previously excluded assets, including Barrick's Fourmile and Newmont's Fiberline and Mike.

Since its last earnings call, Newmont returned $1.9 billion through dividends and buybacks, including $1.6 billion of repurchases. Of a $6.0 billion authorization, $2.8 billion remains. It declared a dividend of $0.26 per share.

Red Chris slips to 2027

Newmont owns 70% of the Red Chris block cave in British Columbia, with Imperial Metals holding the rest. Development capital is now estimated at $4.2 billion to $4.8 billion on a 100% basis, net of an expected CAD$500 million contribution from the Government of Canada.

Construction is expected to start in 2027 and commercial production is targeted for 2033, subject to board approvals. Newmont expects to fund the project from internal cash flow.

For 2027, the company expects gold output to grow by a low-to-mid single-digit percentage, with unit costs trending higher.

The stock and a downgrade

Newmont closed Thursday at $114.11, down 2.62%, before releasing results after the close. Separately, Freedom Broker cut Newmont to Hold on Thursday, citing cost inflation in Australia and risks at Lihir and Cadia.

Newmont held its earnings call at 5:30 p.m. Eastern Thursday, and it expects a full-funds decision on Red Chris in early 2027.

Sources

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