Newmont's Q2 Earnings Beat Estimates, Sales Lag on Lower Volumes

Newmont’s revenues for the second quarter were roughly $6.12 billion, up 15.1% from the prior-year quarter. The figure missed the Zacks Consensus Estimate of $6.35 billion. The year-over-year improvement in the top line was primarily driven by higher realized gold prices, partly offset by lower gold sales volumes.  

Newmont Corporation Price, Consensus and EPS Surprise

Operational Highlights

Newmont’s attributable gold production in the second quarter was roughly 1.29 million ounces, down 12.5% year over year. The figure surpassed our estimate of 1.23 million.  

The average realized price of gold rose around 33% year over year to $4,414 per ounce. The figure lagged our estimate of $4,913 per ounce. 

The company’s CAS for gold on a co-product basis was $1,463 per ounce, up 20.4% year over year. The figure outpaced our estimate of $1,228.8 per ounce. 

AISC for gold on a co-product basis increased around 21.7% year over year to $1,938 per ounce. The figure beat our estimate of $1,881 per ounce. 

Financials

The company ended the quarter with cash and cash equivalents of roughly $9 billion, up 45.7% year over year. At the end of the quarter, Newmont had debt of around $5.08 billion, down 28.7% year over year.  

Net cash provided by operating activities amounted to $2.92 billion in the reported quarter, up 22.7% from $2.38 billion in the year-ago quarter. Free cash flow increased to $2.21 billion from $1.71 billion a year earlier.  

Outlook

Newmont remains on track to achieve its previously announced 2026 guidance. The company expects attributable gold production of approximately 5.26 million ounces. It also projects gold by-product CAS of $1,055 per ounce and gold by-product AISC of $1,680 per ounce. 

General and administrative expenses for 2026 are expected to be around $375 million. Reclamation and remediation accretion is projected at approximately $385 million, while exploration and advanced-project expenses are anticipated to total $525 million. 

NEM’s Price Performance

Shares of Newmont have gained 44% over the past year compared with a 39.2% rise in its industry. 

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NEM’s Zacks Rank & Key Picks

NEM currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. CSW, Carpenter Technology Corporation CRS and Ternium S.A. TX.  

CSW Industrials is expected to report second-quarter results on July 30. The Zacks Consensus Estimate for CSW’s second-quarter earnings is pegged at $3.66 per share. It carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

CRS is slated to report second-quarter results on July 30. The Zacks Consensus Estimate for earnings is pegged at $3.03 per share. CRS has a Zacks Rank #1 at present.

Ternium is scheduled to report second-quarter results on Aug. 4. The Zacks Consensus Estimate for TX’s second-quarter earnings is pegged at $1.06 per share. It currently carries a Zacks Rank #1.

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This article originally published on Zacks Investment Research (zacks.com).

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