Newmont Posts Strong Q2 with $2.2B Net Income Amid Cadia Seismic Disruption

Robust Cash Flow Offsets Operational Challenges

Newmont Corporation (ASX:NEM) reported a strong second quarter in 2026, posting a net income of $2.2 billion and generating a record free cash flow of $2.2 billion. This came despite a 1% drop in attributable gold production to 1.29 million ounces, primarily due to a seismic event at the Cadia mine in Australia that temporarily halted underground operations. The company expects Cadia to return to pre-event production levels in the third quarter.

Gold sales for the quarter totalled 1.2 million ounces, accompanied by 7 million ounces of silver and 17 thousand tonnes of copper. Average realised gold price softened to $4,414 per ounce, down $486 from the previous quarter, yet remained robust enough to support strong earnings and cash generation.

Costs Rise but Stay Within Guidance

Costs Applicable to Sales (CAS) allocated to gold rose to $1,043 per ounce on a by-product basis, up 93% quarter-on-quarter, driven by lower volumes and increased royalties in Ghana. All-In Sustaining Costs (AISC) climbed 58% to $1,621 per ounce, reflecting higher sustaining capital and incremental expenses related to Cadia's downtime. Despite these increases, Newmont reaffirmed its full-year cost guidance, citing year-to-date costs tracking below expectations.

Shareholder Returns and Balance Sheet Strength

Newmont declared a quarterly dividend of $0.26 per share, signalling confidence in its sustainable capital allocation framework. Since the last earnings call, the company has returned $1.9 billion to shareholders through dividends and share repurchases, with $1.7 billion repurchased in the quarter alone. The current $6 billion buyback program still has $4.3 billion available.

The balance sheet remains robust, ending the quarter with $9.0 billion in cash and $13.0 billion in total liquidity, resulting in a net cash position of $3.4 billion. This financial flexibility underpins Newmont’s ability to invest in sustaining and development capital projects while rewarding shareholders.

Project and Regulatory Milestones

Newmont received key regulatory approvals for the Red Chris Block Cave project in British Columbia, including an amended Environmental Assessment Certificate secured through a consent-based process with the Tahltan Nation. This marks a significant step toward a final investment decision on the project.

The company also announced key internal executive appointments aimed at driving the next phase of growth and value creation. Additionally, Newmont published its 22nd Annual Sustainability Report and 5th Annual Taxes & Royalties Contribution Report, highlighting its ongoing commitment to environmental and social governance.

Guidance and Outlook

Newmont remains on track to meet its 2026 production guidance of 5.3 million attributable gold ounces, with half of the year’s production weighted to the second half. Sustaining and development capital expenditures are expected to increase in the latter half, reflecting project timing and seasonal factors. The company anticipates third quarter production to be broadly in line with Q2 levels, with unit costs potentially rising due to higher sustaining capital and oil prices.

Investors should note that the company’s adjusted net income of $2.25 billion for the quarter includes non-cash items such as unrealised losses on investments related to market fluctuations. While Newmont’s financial results demonstrate resilience, the ongoing operational impact of the Cadia seismic event and evolving fiscal regimes, particularly in Ghana, remain areas to watch.