Record $2.2B FCF supports 2026 guidance as Lihir nearshore barrier removal opens 5M+ ounces starting 2028; Cadia disruption and Red Chris permitting remain risks.
Newmont posted $2.2 billion in free cash flow for the second quarter, a record for the gold miner. Production rose and costs stayed in check.
The company held its 2026 production guidance at roughly 6.5 million ounces. The bigger story inside the numbers was Lihir, the Papua New Guinea operation that has been a drag for years. Newmont said it cleared a near-shore barrier that will unlock over 5 million ounces of ore beginning in 2028. The move extends the mine's life and lowers its cost profile.
Lihir's all-in sustaining costs came in at about $1,350 an ounce in Q2, down from $1,500 a year ago. The barrier removal is a one-time capital event. Management said it opens higher-grade zones without the expensive marine disposal that had limited the pit.
Newmont flagged two risks that traders pressed on during the call. Cadia in Australia is dealing with a seismic event that slowed production in June. The company expects output to recover by the fourth quarter. At Red Chris in British Columbia, permitting for an underground expansion that could add 200,000 ounces a year by 2030 is still underway.
Newmont bought back $600 million in shares during the quarter. The board approved an additional $1 billion buyback authorization last month. The stock carries an Alpha Score of 65, reflecting moderate strength in the materials sector.
The company has not changed its 2027 or 2028 guidance yet. The Lihir timeline gives analysts a new anchor for long-term models. The next quarterly report is due in late October.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.