24. April 2026
Newmont (WKN 853823) impressively demonstrates the leverage of the current precious metals price environment at the start of 2026. The world’s largest gold producer significantly exceeded both the previous quarter and market expectations in the first quarter.
Record Financial Results with Stable Costs
A massive price surge was the main driver of the strong quarterly results: The realized gold price climbed to an average of $4,900 per ounce (Q1/prior year: $2,944). This was directly reflected in the balance sheet:
- Net income: $3.3 billion
- Adjusted earnings: $3.2 billion
- Adjusted earnings per share: $2.90 (analyst consensus: $2.17)
- Free cash flow: Record value of $3.1 billion
At the same time, costs remained under control. The gold byproduct all-in sustaining costs amounted to only $1,029 per ounce. Increased byproduct credits from copper and silver successfully counteracted industry-wide cost pressure in an inflationary environment.
Lower Production, but Stable Annual Guidance
Operationally, Newmont recorded a decline. Production decreased by 10% year-over-year to 1.3 million attributable ounces of gold. CEO Natascha Viljoen attributed this to operational disruptions as well as lower ore grades at the Boddington, Tanami, and Lihir sites.
The quarter’s financial strength thus results exclusively from the high price level and cost control, not from production volume. Nevertheless, management does not view the challenges as a structural problem and reaffirms its annual guidance: The production target for the full year 2026 remains at approximately 5.3 million ounces of gold.
Newmont with Massive Capital Returns to Shareholders
The company is utilizing the historically high cash flows for shareholder-friendly capital allocation. In the first quarter alone, $2.7 billion flowed back to shareholders through dividends (quarterly dividend: $0.26 per share) and share buybacks. After fully completing the previous program, Newmont also announced a new, significantly expanded share buyback program with a volume of $6 billion.
Conclusion: Newmont effortlessly compensates for the currently weaker production volume through high margins. For the coming months, it remains critical whether the company can stabilize operational production as projected and whether the precious metals price level persists at approximately this historic high.
