Newmont expects Cadia to return to 80% capacity in 5 weeks and maintains 2026 guidance with new $6B buyback authorization
View original at seekingalpha.comNewmont expects Cadia to return to 80% capacity in 5 weeks and maintains 2026 guidance with new $6B buyback authorization Earnings Call Insights: Newmont (NEM) Q1 2026 MANAGEMENT VIEW * "Newmont's focus on operational excellence continues to deliver consistent and predictable performance with our first quarter results…
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Record free cash flow generation is flowing through the enhanced capital allocation framework, enabling reinvestment, dividends, and a new $6 billion share repurchase authorization.
60% confidence2026 is a trough year for Newmont; the company will consider 2027 guidance as it works through the year.
60% confidenceAll-in sustaining costs are expected to be notably higher in Q2 2026, more in line with guidance provided in February.
60% confidenceThe CFO recruitment process is progressing well and Newmont expects to share more information soon.
60% confidenceThe Nevada Gold Mines notice of default period is open-ended with no set timeline for resolution, but Newmont hopes to resolve it in the near term through the structured JV agreement process.
60% confidenceNewmont declared a dividend of $0.26 per share in Q1 2026, spent $381 million in sustaining capital, and deployed $239 million in development capital.
60% confidenceNewmont delivered adjusted EBITDA of $5.2 billion, adjusted net income of $2.90 per diluted share, and gold all-in sustaining costs of $1,029 per ounce (byproduct basis) in Q1 2026.
60% confidenceCadia underground rehabilitation is expected to be completed in the next 5 weeks, enabling return to 80% operating capacity, with full recovery expected by end of Q2 2026.
60% confidenceNewmont is maintaining its full year cost guidance while monitoring the geopolitical environment and its potential impact on costs.
60% confidenceRemedies under the Nevada Gold Mines JV default include a range of possibilities being worked through the structured JV agreement process.
60% confidenceQ2 2026 production is expected slightly below Q1, keeping Newmont on track for full year guidance of 5.3 million ounces.
60% confidenceNewmont's Q1 results demonstrate it is on track to achieve 2026 guidance, reflecting consistent and predictable operational performance.
60% confidenceNotable energy price increases and global supply chain disruptions are being actively mitigated using Newmont's scale and supply chain team.
60% confidenceGhana's new sliding scale royalty creates an incremental cost headwind of approximately $25 per ounce for Newmont in 2026, to be mitigated through cost management and productivity.
60% confidenceQ1 2026 free cash flow of $3.1 billion was a record even after approximately $1.3 billion in cash tax payments.
60% confidenceNewmont's acquisition appetite is minimal; focus remains firmly internal on its own operations.
60% confidenceNewmont produced 1.3 million ounces of gold, 30,000 tonnes of copper, and 9 million ounces of silver in Q1 2026, generating $3.8 billion in operating cash flow and a record $3.1 billion in free cash flow.
60% confidenceAs of Q4 2025 Newmont had limited information on Nevada Gold Mines; by Q1 2026 the company has moved to exercising audit rights and reviewing findings, indicating a more engaged posture.
60% confidenceQ1 outperformance provides prudent flexibility to absorb any impact from temporary mill feed interruptions at Cadia in Q2.
60% confidenceNewmont is in active, commercially and technically disciplined engagement in response to the Ghana contractor mining directive.
60% confidenceNewmont's inflation management levers are productivity and cost discipline, supported by a strong supply chain team.
60% confidenceNewmont repurchased $2.4 billion in shares since the last earnings call, bringing total repurchases to $6 billion over 24 months.
60% confidenceNewmont received approximately $321 million in after-tax proceeds from sale of SolGold and Greatland Resources equity, bringing total noncore divestiture proceeds to over $4.6 billion.
60% confidenceQ2 will be a slightly lower production quarter as expected, with Q3 expected to come back stronger.
60% confidence
Data points we hold from this source
| Newmont Corporation · gold production | 1.3 million_oz |
| Newmont Corporation · buyback authorization new | 6 USD |
| Newmont Corporation · cumulative divestiture proceeds | 4.6 USD |
| Newmont Corporation · sustaining capital expenditure | 381 USD |
| Newmont Corporation · eps | 2.90 USD |
| Newmont Corporation · gold aisc byproduct | 1029 USD_per_oz |
| Newmont Corporation · ghana royalty cost headwind | 25 USD_per_oz |
| Newmont Corporation · share buybacks since last call | 2.4 USD |
| Newmont Corporation · dividend per share | 0.26 USD |
| Newmont Corporation · silver production | 9 million_oz |
| Newmont Corporation · cash flow from operations | 3.8 USD |
| Newmont Corporation · copper production | 30000 tonnes |
| Newmont Corporation · cash tax payments | 1.3 USD |
| Newmont Corporation · cumulative share buybacks | 6 USD |
| Newmont Corporation · divestiture proceeds q1 | 321 USD |
| Newmont Corporation · development capital expenditure | 239 USD |
| Newmont Corporation · gold production guidance fy | 5.3 million_oz |
| Newmont Corporation · adjusted ebitda | 5.2 USD |