Newmont Reports Record Q1 Earnings and Free Cash Flow, Authorises $6 Billion Buyback

Record Earnings and Cash Flow Drive Capital Return

Newmont Corporation (ASX:NEM) kicked off 2026 with a bang, posting a net income of $3.3 billion for the first quarter, nearly doubling the $1.9 billion reported a year earlier. Adjusted net income came in at $3.2 billion or $2.90 per diluted share, while adjusted EBITDA soared 96% to $5.15 billion. The company generated a record $3.1 billion in free cash flow, a 160% jump from the prior year, underpinning its robust financial position.

This strong cash generation has enabled Newmont to declare a $0.26 per share dividend for the quarter and, crucially, to authorise a fresh $6 billion share repurchase program. This follows the completion of the previous $6 billion buyback, under which the company repurchased $2.4 billion of shares since its last earnings call, reflecting a disciplined and shareholder-friendly capital allocation strategy.

Solid Production Despite Operational Hurdles

Operationally, Newmont produced 1.3 million attributable gold ounces in the quarter, alongside 9 million ounces of silver and 30,000 tonnes of copper. While this output is slightly down from recent quarters, it remains on track to meet the company's full-year guidance of 5.3 million attributable gold ounces.

Production was impacted by several factors, including a bushfire at Boddington, record rainfall and mine sequencing at Tanami, and maintenance at Lihir and Cerro Negro. Notably, a magnitude 4.5 earthquake near the Cadia operation in New South Wales temporarily halted underground mining. Surface operations and stockpile processing continued, with underground activities expected to resume in the second quarter and full capacity by Q3.

Despite these challenges, cost discipline and productivity initiatives helped reduce the gold by-product all-in sustaining costs (AISC) to $1,029 per ounce, down 21% year on year. This was supported by favourable silver and copper prices, ongoing cost savings, and lower sustaining capital expenditure in the quarter.

Financial Strength and Strategic Portfolio Moves

Newmont finished the quarter with $8.8 billion in cash and cash equivalents and total liquidity of $12.8 billion, maintaining a net cash position of $3.2 billion. The company also redeemed $42 million in senior notes and repurchased $1.9 billion of common stock during the quarter, with an additional $556 million of share repurchases settled in April.

The company continues to optimise its portfolio, having completed divestitures of non-core assets including CC&V, Musselwhite, and Éléonore in 2025, generating over $4.6 billion in after-tax proceeds to date. Recent equity sales of Greatland Resources Limited and SolGold plc added approximately $250 million in cash proceeds.

Newmont's joint ventures also contributed to the quarter’s results. Nevada Gold Mines (NGM) delivered 236,000 attributable gold ounces, while the Pueblo Viejo mine and Lundin Gold's Fruta del Norte mine produced 54,000 and 38,000 attributable ounces respectively.

Regulatory and Market Risks in Focus

Newmont's operations face ongoing geopolitical and regulatory risks. The company highlighted the impact of recent changes in Ghana’s royalty framework, which could increase operating costs by approximately $25 per ounce at the group level. Newmont is actively engaging with Ghanaian authorities to manage these changes.

Additionally, Newmont has raised concerns about mismanagement within the Nevada Gold Mines joint venture, specifically regarding resource diversion benefiting Barrick’s Fourmile property. The company has exercised contractual inspection and audit rights and issued a notice of default, signalling potential tensions in this key asset.

Environmental compliance remains a priority, with significant reclamation and remediation expenditures ongoing, including $169 million spent on water treatment plants at Yanacocha in Peru during the quarter. These efforts reflect Newmont’s commitment to sustainable mining practices.

Capital Allocation Framework and Outlook

Newmont’s enhanced capital allocation framework prioritises sustaining capital investments, a sustainable dividend, disciplined development capital, balance sheet optimisation, and ratable share repurchases. The company expects to spend $1.95 billion on sustaining capital and $1.4 billion on development projects in 2026, including major initiatives like Tanami Expansion 2 and Cadia Panel Caves.

The company’s net cash target remains $1 billion, with flexibility to manage through commodity cycles. Newmont’s leadership emphasised the sustainability of its dividend and buyback programs, aiming to deliver consistent shareholder returns while funding growth.

Looking ahead, Newmont remains on track to meet its full-year 2026 guidance despite near-term operational headwinds. The company’s strong balance sheet and record cash flow generation provide a solid foundation for navigating ongoing market volatility and geopolitical uncertainties.

These results build on Newmont’s momentum from last year, when the company reported record earnings and strategic divestments that sharpened its focus on core assets and sustainability goals, as outlined in its 2025 surge and bold ESG commitments.