Why did Gold by-product AISC rise so sharply in Q2 2026?

Gold by-product AISC rose 58% to $1,621/oz from $1,029/oz in Q1. The increase was driven mainly by higher sustaining capital and other expenses, including incremental costs at Cadia during downtime after the April seismic event. Lower gold and co-product volumes, lower silver prices, and a full quarter of higher Ghana royalties and diesel costs also contributed. Management says year-to-date costs are still tracking well below full-year cost guidance.

Is Newmont still on track to meet its 2026 production guidance?

Yes. Management says it remains on track to meet its 2026 guidance of 5.3 million attributable gold ounces. H1 production was slightly above expectations at 2.59 million ounces, and production is expected to be about 51% weighted to H2. Guidance assumes a gold price of $4,500/oz, and the filing includes sensitivity tables for gold, currency, oil, and co-product prices.

Is the $0.26 quarterly dividend sustainable, and what is the outlook for future payouts?

The $0.26 dividend, payable September 28, 2026, equals an indicated annualized $1.04 per share. Management describes a framework targeting about $1.1 billion per year in dividends, set per share as buybacks reduce the share count. Future dividends beyond this payment are not approved or declared, and the company stresses that its capital allocation framework is non-binding and that future payments are at the Board's discretion.

How much capacity does Newmont have for further share repurchases?

Newmont has repurchased $1.7 billion of stock since the last earnings call under a $6.0 billion authorization, leaving $4.3 billion remaining. Repurchases are executed at the company's discretion, have no time limit, and can be suspended at any time. Management intends to request additional authorization from the Board as the current program nears completion.

What caused the decline in Q2 results compared with Q1?

Lower realized gold prices were the main driver. The average realized gold price fell to $4,414/oz from $4,900/oz, and revenue declined. Net income fell about $1.1 billion, partly offset by a $452 million decrease in income and mining tax expense. Production was also hurt by the Cadia seismic event, which pushed copper output down 43% quarter over quarter.

NEM/NEMCL 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.

Newmont reported a strong second quarter 2026, with attributable gold production of 1.29 million ounces, record second-quarter free cash flow of $2.2 billion^a, and net income attributable to stockholders of $2.2 billion ($2.06 per diluted share).

Adjusted net income was $2.2 billion^b ($2.10 per diluted share) and Adjusted EBITDA was $3.8 billion. Results were down sequentially from Q1 2026 on lower realized gold prices ($4,414/oz versus $4,900/oz) and a Cadia seismic event that halted operations in April. Gold by-product all-in sustaining costs (AISC) rose to $1,621/oz from $1,029/oz, although management said year-to-date costs remain well below full-year guidance.

Management reaffirmed its 2026 guidance of 5.3 million attributable gold ounces and said it remains on track. It declared a quarterly dividend of $0.26^c per share (an indicated annualized $1.04), payable September 28, 2026. Since the last earnings call, Newmont has repurchased $1.7 billion of stock, with $4.3 billion left under the $6.0 billion authorization.

Cash stood at $9.0 billion^d and net cash at $3.4 billion. Management also expects third-quarter gold production to be broadly in line with Q2, with unit costs rising on higher sustaining capital spend.

The filing is a furnished (not filed) Item 2.02 8-K attaching the earnings release. Because the release is furnished, it is not subject to Section 18 liability, and the forward-looking statements and non-GAAP reconciliations are presented as management's own disclosures.

02—Key points

Key Highlights

Production and costs: Attributable gold production was 1,293 thousand ounces, down 1% from Q1, with Cadia output hit by the April seismic event. Gold by-product CAS rose 93% to $1,043/oz and gold by-product AISC rose 58% to $1,621/oz.
Earnings: Net income attributable to Newmont stockholders was $2.2 billion ($2.06 per diluted share), down $1.1 billion from Q1. Adjusted net income was $2.2 billion ($2.10 per diluted share), and Adjusted EBITDA was $3.8 billion.
Cash flow: Net cash from operating activities was $2.9 billion and free cash flow was a record second-quarter $2.2 billion, though down 30% from Q1. Working capital was a $90 million net use of cash.
Capital returns: Newmont returned $1.9 billion to shareholders through dividends and buybacks since the last earnings call and declared a $0.26 quarterly dividend. Share count has fallen by more than 100 million (about 9%) since February 2024.
Balance sheet: The company ended the quarter with $9.0 billion of cash, $13.0 billion of total liquidity (including $4.0 billion undrawn on its revolver), and a net cash position of $3.4 billion, above its $1 billion net cash target.
Guidance: The company reaffirmed 2026 guidance of 5.3 million attributable gold ounces and expects production to be 51% weighted to H2. Q3 production is expected to be broadly in line with Q2, with higher unit costs from sustaining capital and oil prices.
Project and reclamation: Red Chris Block Cave received key British Columbia approvals, including an amended Environmental Assessment Certificate, advancing toward a final investment decision. Reclamation spending is expected to reach about $850 million in 2026, including roughly $550 million for Yanacocha water treatment plants.

03—Questions

Frequently Asked Questions

Why did Gold by-product AISC rise so sharply in Q2 2026?
Gold by-product AISC rose 58% to $1,621/oz from $1,029/oz in Q1. The increase was driven mainly by higher sustaining capital and other expenses, including incremental costs at Cadia during downtime after the April seismic event. Lower gold and co-product volumes, lower silver prices, and a full quarter of higher Ghana royalties and diesel costs also contributed. Management says year-to-date costs are still tracking well below full-year cost guidance.
Is Newmont still on track to meet its 2026 production guidance?
Yes. Management says it remains on track to meet its 2026 guidance of 5.3 million attributable gold ounces. H1 production was slightly above expectations at 2.59 million ounces, and production is expected to be about 51% weighted to H2. Guidance assumes a gold price of $4,500/oz, and the filing includes sensitivity tables for gold, currency, oil, and co-product prices.
Is the $0.26 quarterly dividend sustainable, and what is the outlook for future payouts?
The $0.26 dividend, payable September 28, 2026, equals an indicated annualized $1.04 per share. Management describes a framework targeting about $1.1 billion per year in dividends, set per share as buybacks reduce the share count. Future dividends beyond this payment are not approved or declared, and the company stresses that its capital allocation framework is non-binding and that future payments are at the Board's discretion.
How much capacity does Newmont have for further share repurchases?
Newmont has repurchased $1.7 billion of stock since the last earnings call under a $6.0 billion authorization, leaving $4.3 billion remaining. Repurchases are executed at the company's discretion, have no time limit, and can be suspended at any time. Management intends to request additional authorization from the Board as the current program nears completion.
What caused the decline in Q2 results compared with Q1?
Lower realized gold prices were the main driver. The average realized gold price fell to $4,414/oz from $4,900/oz, and revenue declined. Net income fell about $1.1 billion, partly offset by a $452 million decrease in income and mining tax expense. Production was also hurt by the Cadia seismic event, which pushed copper output down 43% quarter over quarter.

04—Continue

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