Published
# Newmont Corporation (NYSE: NEM) — Narrative, Q3 2026 All amounts are in US dollars. Gold quantities are troy ounces; "koz" is thousand ounces and "Moz" million ounces. ## Business *From the FY2025 Form 10-K (fiscal year ended December 31, 2025), accession 0001164727-26-000010.* Newmont mines gold, and most of its revenue comes from selling it. In 2025, 85% of sales came from gold, mostly refined gold. Its mines produce doré bars, which outside refiners turn into bullion for a fee; the rest is sold as concentrate. Copper, silver, lead and zinc make up the remaining 15% (copper 6%, silver 5%, zinc 3%, lead 1%). These metals are sold mainly as concentrate to smelters and traders. All metal is priced in US dollars, and gold and silver are sold in London. The company does not hedge its metal sales, so its revenue moves directly with metal prices. The 10-K says it does not depend on a limited number of customers. Newmont describes itself as the world's largest gold producer, with about 5% of global mined supply. At December 31, 2025 it held 118.2 Moz of attributable proven and probable gold reserves. The business is organized as 13 reportable segments: 12 mines that Newmont manages, plus its 38.5% share of Nevada Gold Mines (NGM). Barrick owns the other 61.5% of NGM and operates it. - **Australia:** Cadia (gold and copper, block-cave mining), Tanami (gold), Boddington (gold and copper). - **Papua New Guinea:** Lihir (gold, open pit, on Aniolam Island). - **Ghana:** Ahafo South; Ahafo North, which reached commercial production in October 2025. - **Suriname:** Merian (75% owned; the government holds 25% through Staatsolie). - **Latin America:** Cerro Negro (Argentina), Yanacocha (Peru), and Peñasquito (Mexico), which produces gold, silver, lead and zinc. - **Canada:** Red Chris (70% owned; gold and copper) and Brucejack (gold). - **United States:** NGM's Nevada mines (38.5%). Newmont also holds non-operated stakes, accounted for under the equity method: Pueblo Viejo in the Dominican Republic (40%), Lundin Gold (32%, owner of the Fruta del Norte mine in Ecuador), and the Norte Abierto and NuevaUnión projects in Chile (50% each). It owns 50% of the Wafi-Golpu project in Papua New Guinea. The idled Conga project in Peru is held in care and maintenance. Attributable gold production was 5,889 koz in 2025, down from 6,849 koz in 2024. Consolidated co-product output was 296 million pounds of copper, 28 Moz of silver, 216 million pounds of lead and 509 million pounds of zinc. At year-end 2025 Newmont had about 17,500 employees and about 26,600 contractors; about 27% of the workforce was unionized or covered by collective bargaining. Today's portfolio is the result of the November 2023 acquisition of Newcrest Mining, an all-stock deal valued at $13,549 million. Newcrest brought Lihir, Cadia, Red Chris, Brucejack and the Lundin Gold stake. Newmont then sold six non-core mines and a development project: Telfer (Q4 2024); CC&V, Musselwhite and Éléonore (Q1 2025); Porcupine and Akyem (Q2 2025); and the Coffee project (Q4 2025). No assets were still held for sale at December 31, 2025. ## Risk factors *From the FY2025 Form 10-K, Item 1A, accession 0001164727-26-000010, as updated in Part II, Item 1A of the Q1 2026 Form 10-Q (accession 0001164727-26-000019) and the Q2 2026 Form 10-Q (accession 0001164727-26-000036). The Q3 2026 Form 10-Q (accession 0001164727-26-000043) reports no material changes from the 10-K risk factors or from those updated in the Q1 and Q2 2026 quarterly reports.* The main risks fall into four groups: metal prices and costs, geology and engineering, joint ventures, and the countries Newmont operates in. - **Metal prices with no hedging.** Newmont does not hedge gold, copper, silver, lead or zinc sales. Lower prices therefore flow straight into revenue and cash flow. They can also force write-downs of stockpiles and leach pads, remove ore from reserves and delay projects. The company tests its assets for impairment using a long-term gold price assumption of $2,500 per ounce. - **Cost inflation and capital intensity.** Labor, fuel, energy, reagents and equipment are the main cost drivers. Argentina, Suriname and Ghana have had high inflation. Sustaining capital is expected to stay elevated because of tailings work at Cadia and Boddington. The Q1 2026 10-Q (accession 0001164727-26-000019) added a risk factor on conflicts in the Middle East. Possible constraints on shipping through the Strait of Hormuz and disruptions to fuel and energy supply could raise costs or force the temporary shutdown of mines that need reliable fuel or power. Market dislocation could also make financing costlier or unavailable. - **Geotechnical and seismic risk.** Older mines and deeper pits raise the risk of wall and slope failures, which Newmont has experienced in Australia, Ghana, Peru, Canada and Nevada. Block caving at Cadia brings risks of seismic activity, ground movement and sudden releases of material through drawbells. Cadia had such releases in 2023 and was halted by a seismic event in 2017; a further seismic event in April 2026 is covered below. At Lihir, steep pit slopes are stabilized in hot, geothermally active ground inside a volcanic caldera. - **Tailings and closure costs.** Newmont handles about 150 million tonnes of tailings a year and is bringing all tailings facilities into line with the Global Industry Standard on Tailings Management (GISTM), which raises sustaining and closure costs. Closure estimates are large and still moving, especially at Yanacocha, where two new water treatment plants are in the closure obligation. - **Water.** Peñasquito draws water from the Cedros aquifer, which is drought-prone and declining. Tanami, Boddington and Lihir are exposed to too much or too little rain. - **Non-operated joint ventures.** Newmont depends on Barrick to run NGM. On January 26, 2026, Newmont told Barrick and the NGM board that it had found evidence of mismanagement, including resources diverted to Barrick's wholly owned Fourmile property. It sent a notice of default on February 3, 2026. The August 2026 settlement is covered below. - **Ghana.** Newmont's stability agreement, which fixed its tax and royalty terms, expired on December 31, 2025. The maximum corporate income tax rate rose from 32.5% to 35%, customs duties now apply, and a sliding-scale royalty of 5% to 12% was proposed; it has since been enacted, effective early March 2026, as covered below. Local-content rules would also require mining work to be outsourced to Ghanaian-owned contractors. The Q2 2026 10-Q (accession 0001164727-26-000036) revised this risk factor. Proposed amendments to Ghana's Minerals and Mining Act would shorten new mining leases and renewals, require community development agreements with host communities, and could reduce fiscal stability protections. Gold sales and exports are also exposed to the Ghana Gold Board (GoldBod), including requirements to sell up to 30% of Ghana production to it for Ghanaian cedis. In July 2026, a doré shipment from the Ghana operations was held in the country pending engagement with regulators. - **Peru.** Political turnover continues: eight presidents in less than a decade, the impeachment of José Jerí in February 2026, and general elections in April 2026. Conga has been suspended since 2011, and Newmont does not expect to develop it within ten years. - **Papua New Guinea.** Possible changes include a production-sharing regime, domestic gold-refining requirements and a new income tax act that took effect January 1, 2026. Lihir's mining contract does not protect it against income-tax changes. The Wafi-Golpu permit faces court challenges, and the Lihir special mining lease expires in 2035. - **Mexico.** The 2023 mining reform, a proposed ban on open-pit mining concessions, December 2025 water-law changes and a disputed environmental tax in Zacatecas all bear on Peñasquito. That mine was shut by a strike from June to October 2023. - **Argentina and Suriname.** Argentina has currency controls, a hyperinflationary economy and a new Santa Cruz province law requiring 90% local hiring. In Suriname, wage talks are stalled in mediation and residence-permit rules now cover expatriate staff. - **Canada.** Indigenous rights and title claims, and British Columbia's alignment of its laws with the UN Declaration on the Rights of Indigenous Peoples (UNDRIP), affect Red Chris and Brucejack. The Red Chris block cave expansion needs consent from the Tahltan Nation. - **Labor.** Unions represent about 26.6% of employees. Labor agreements come up for renewal in 2026–2027 in Peru, Argentina, Mexico and Suriname, and Newmont has had past work stoppages at Peñasquito, Cerro Negro and Merian. - **Financial.** Newmont carries large goodwill from the Newcrest deal, depends on future taxable income to use its deferred tax assets, and holds credit ratings of BBB+ (S&P), A3 (Moody's) and A- (Fitch). Costs paid in non-US currencies (about 59% of 2025 costs applicable to sales) move with exchange rates. The company also carries indemnities and contingent consideration from its divestitures, including closure-cost indemnities at CC&V. - **Compliance and cyber.** Newmont faces anti-bribery exposure, including possible past Newcrest conduct, as well as sanctions and export-control rules. It has no dedicated cybersecurity insurance; it detected a cyberattack in 2020. ## Management's discussion — fiscal 2025 *From the FY2025 Form 10-K, Item 7, accession 0001164727-26-000010.* In 2025, higher gold prices more than offset a smaller portfolio and lower volumes. Sales rose to $22,669 million from $18,682 million. Gold sales were $19,304 million, on 5,519 koz sold at an average realized price of $3,498 per ounce (2024: 6,539 koz at $2,408). The divested mines took $2,254 million out of sales. Net income from continuing operations attributable to stockholders more than doubled to $7,085 million, or $6.39 per diluted share, from $3,280 million ($2.86). Management gave three drivers for the increase, partly offset by higher taxes and impairments: - Higher sales from the realized gold price. - A $1,066 million gain on completed divestitures, compared with a $1,114 million loss in 2024 from write-downs of assets held for sale. - Lower costs applicable to sales, because the divested sites no longer contributed costs. Income and mining tax expense rose to $4,596 million from $1,397 million. Newmont also took a $770 million non-cash impairment on the Yanacocha Sulfides project. In Q4 2025 it removed the project from the mine plan, downgraded its reserves to resources, began selling project equipment and started a severance program as Yanacocha's oxide mining winds down. Excluding the divestitures, costs rose because of higher mining and milling costs at NGM and Brucejack, higher government royalties (mainly at Ahafo South) and higher worker profit-sharing at Peñasquito and Yanacocha. Co-product all-in sustaining costs (AISC) were $1,609 per gold ounce, up from $1,516. Currency moves, mainly devaluation of the Argentine and Mexican pesos, lowered site costs by $190 million. A restructuring launched in Q3 2025 to streamline the organization and cut the workforce helped reduce general and administrative expense to $382 million from $442 million. Results by site were mixed: - Yanacocha gold production rose 45% on injection leaching. - Red Chris rose 55% and Peñasquito 39% on higher grades. - Cadia and Ahafo South each fell 17% on lower grades. - Cerro Negro fell 15% after safety shutdowns in Q1 2025. - Merian fell 14%. Cash flow was strong: - Operating cash flow from continuing operations rose by $4,016 million to $10,334 million. - Free cash flow, a non-GAAP measure, was $7,299 million, up from $2,916 million. - Cash used in financing was $7,040 million. This covered a $2 billion debt tender, full redemption of the 2026 notes and open-market note repurchases ($101 million loss on extinguishment), plus $2,303 million of share buybacks. Newmont ended 2025 with $7,647 million of cash, an undrawn $4,000 million revolving credit facility, total liquidity of $11,647 million and net cash of $2,058 million. Its near-term development projects were: - Tanami Expansion 2: estimated capital of $1,700 million to $1,800 million. - Cadia Panel Caves: estimated capital of $2,000 million to $2,400 million. In February 2026 the Board declared a $0.26 quarterly dividend under a new capital allocation framework. ## Current quarter — Q3 2026 (three months ended September 30, 2026) *From the Q3 2026 Form 10-Q, accession 0001164727-26-000043, unless another accession is cited.* **Results.** Higher gold and silver prices lifted earnings, even though Newmont sold fewer gold ounces. - **Sales:** $6,363 million, up from $5,524 million. - **Gold sales:** $5,228 million, on 1,211 koz sold at an average realized $4,317 per ounce (Q3 2025: 1,319 koz at $3,539). Higher prices added $934 million; lower volume took away $383 million. - **Silver sales:** almost doubled to $550 million, on 11 Moz sold at a net realized $50.50 per ounce, nearly all from Peñasquito. - **Copper sales:** fell to $288 million as copper volumes dropped, mainly at Cadia. - **Net income attributable to stockholders:** $2,475 million, or $2.35 per diluted share (Q3 2025: $1,832 million, $1.67). - **Costs applicable to sales:** rose to $2,143 million from $1,951 million. - **Effective tax rate:** 26%, down from 31%. - **Equity income from affiliates:** $143 million, mainly from Pueblo Viejo and Lundin Gold. The 10-Q names three events that make comparisons with 2025 difficult: - Ahafo North came into production in Q4 2025. - The divestment program finished in 2025. - Cadia was disrupted by an April 2026 seismic event. The cost increase came from three sources. Ahafo North added a new cost base. Direct costs rose at Boddington, Lihir and NGM. Royalties rose at NGM on higher gold prices and at Ahafo South on both price and rate. Lower costs at Cadia partly offset these increases. **Production and unit costs.** Attributable gold production was 1,302 koz: 1,199 koz from Newmont's mines and its NGM share, plus 103 koz from Pueblo Viejo and Fruta del Norte. This compares with 1,421 koz in Q3 2025. Gold co-product AISC rose to $1,963 per ounce from $1,566. **Site performance against Q3 2025:** - **Cadia:** On April 14, 2026, a seismic event halted underground mining. Surface processing of stockpiles continued until May 11, mining resumed on a progressive ramp-up from mid-June, and production returned to pre-event levels during Q3. Cadia's quarterly gold output was 37% lower, primarily because of continuing impacts from the seismic event in the third quarter, and its co-product AISC rose to $3,390 per ounce. The event added $28 million of incremental costs for the nine months. - **Peñasquito:** Gold fell 48% on lower grades and recoveries. - **Other declines:** Red Chris fell 40%, Ahafo South 28%, Yanacocha 23% and Tanami 19%. - **Merian:** Rose 40%. **Cash, balance sheet and returns.** - **Operating cash flow:** For the nine months, operating cash flow was $9,477 million, up from $6,713 million, on higher realized gold and silver prices. Cash tax payments partly offset the gain, at $3,207 million against $1,701 million a year earlier. Capital additions were $2,216 million, so nine-month free cash flow was $7,261 million. - **Shareholder returns:** In the nine months Newmont spent $5,241 million on buybacks and $831 million on dividends. The $3 billion buyback authorized in July 2025 was completed in April 2026, and the Board approved a new $6 billion program that month; $3,210 million of it remained at September 30. In total, $9,241 million of stock had been repurchased under the authorized programs by the 10-Q filing date. - **Balance sheet:** At September 30, 2026, cash was $8,827 million, debt $5,087 million, total liquidity $12,827 million and net cash $3,243 million. No debt matures before 2029. **NGM settlement.** The mismanagement dispute with Barrick described under Risk factors was settled on August 10, 2026, when the two companies amended the NGM joint venture agreement. Under the amendment, Barrick's Fourmile development property and Newmont's Fiberline and Mike properties are to be contributed to NGM, and Newmont is to pay $1.95 billion in cash. Once the contributions are made, Newmont will record its 38.5% interest in Fourmile at the consideration it transferred: the cash payment plus 61.5% of the fair value of Fiberline and Mike. Because Fiberline and Mike carry no book value, Newmont expects to book a gain. **Ghana.** From January 1, 2026, the royalty became a flat 5% of gold revenue. Legislation effective in early March 2026 replaced it with a sliding scale of 5% to 12% linked to the gold price. The Growth and Sustainability Levy was cut from 3% to 1% from April 1, 2026. **Other developments in the period.** - In Q2, Newmont received a roughly 13% stake in LunR Royalties, valued at $268 million, as a distribution from Lundin Gold; the book value of its Lundin Gold investment fell by the same amount. At September 30, the Lundin Gold stake had a market value of $4,726 million, against a $572 million carrying value. - In Q3 it booked a $39 million gain on selling a historical mine site that was already in closure. - In July 2026 it began using Argentina's Blue Chip Swap market to convert pesos, booking losses on those trades. **Legal matters.** - **Securities class action:** The Karas suit against the company and its then-senior executives was dismissed, with final judgment entered on September 17, 2026. - **Australian tax dispute:** The Australian Taxation Office has assessed about $85 million of capital gains tax, including interest and penalties, on a 2011 internal reorganization. In August 2026 the Federal Court issued orders concluding that the market value of Newmont Australia's taxable Australian real property (TARP) assets did not exceed that of its other assets, and awarded costs to the company. The ATO appealed on September 17, 2026, and the appeal is expected to be heard in 2027. - **Cadia class action:** A suit filed February 2, 2026 over alleged dust and fluid emissions is ongoing. - **Equinox claim:** Equinox has demanded about $114 million under a Mexican tax allocation agreement from the 2017 Los Filos sale. Newmont disputes the claim. **Outlook and projects.** Management's October 22, 2026 results release (accession 0001164727-26-000041) gives the outlook: - **2026:** Production and capital guidance are unchanged, and unit-cost guidance has improved. - **Q4 2026:** Expected to be the year's strongest production quarter, but at higher unit costs, as capital spending peaks and Peñasquito's silver output falls. - **2027:** Modest production growth at higher unit costs, with development capital rising for the Lihir Nearshore Barrier and the Red Chris Block Cave. The 10-Q lists Newmont's near-term development projects as Tanami Expansion 2, Cadia Panel Caves, Lihir Nearshore Barrier and the Cerro Negro expansions. Development spending since approval totals: - **Tanami Expansion 2:** $1,496 million. - **Cadia Panel Caves:** $677 million. - **Lihir Nearshore Barrier:** $67 million. - **Cerro Negro expansions:** $167 million. The Red Chris Block Cave feasibility study is nearing completion, and a full-funds investment decision, subject to Board approval, is expected in early 2027. ## Subsequent events *From the Q3 2026 Form 10-Q, accession 0001164727-26-000043, and the Q3 2026 results release, accession 0001164727-26-000041.* The quarterly report has no separate subsequent-events note. It and the October 22, 2026 results release disclose the following developments after September 30, 2026. Neither filing reports any acquisition, divestiture or new borrowing completed after quarter-end. - **Share repurchases:** After September 30, Newmont bought back and retired an additional $451 million of stock: about 3.9 million shares at an average of $116, under a Rule 10b5-1 plan. That brought total repurchases under the authorized programs to $9,241 million by the October 22 filing date. Common shares outstanding were 1,039,193,185 on October 15, 2026. - **Dividend:** In October 2026 the Board declared a $0.26 per share dividend for Q3 2026. - **NGM transaction pending:** The property contributions to NGM had not happened by the filing date; they are expected in Q4 2026. Newmont's $1.95 billion payment to Barrick is due within 30 days after the Fourmile contribution, and the company expects to fund it from available liquidity. The September 30 cash and net cash figures above are before this payment. - **Derivative litigation:** In the consolidated Gunderson shareholder suits, the court lifted its stay after Karas was dismissed. The parties filed a joint status report on October 19, 2026, and the court ordered a proposed scheduling order or further status report by November 18, 2026.