Total Metals Corp (TSXV:TT, FSE: O4N)
Total Metals Corp. is focused on advancing high-grade gold projects to production.
The world’s largest gold producer, Newmont Corporation (NYSE: NEM), reported its second-quarter 2026 earnings after the market close on Thursday. Despite a roughly 13% correction in gold prices during the quarter, the company delivered a comprehensive earnings beat and posted a record-high US$2.2 billion in free cash flow for the period.
Higher Gold Prices, Though Off Peaks, Still Fuel Profit Growth
According to the earnings report, Newmont generated US$6.1 billion in revenue for the second quarter, with net income of US$2.2 billion, or US$2.06 per diluted share. Adjusted net income stood at US$2.2 billion, or US$2.10 per share, surpassing the consensus analyst estimate of US$1.98 per share.
Although gold prices retreated from their first-quarter highs, Newmont’s average realized gold price for the quarter remained historically elevated at US$4,414 per ounce, a significant increase of roughly 33% compared to US$3,320 per ounce in the same period last year. President and CEO Natascha Viljoen stated that the company achieved attributable gold production of approximately 1.3 million ounces during the quarter and generated record free cash flow, while remaining on track to meet its full-year 2026 guidance.
Operational Disruptions Push Costs Higher, But Guidance Maintained
On the production front, attributable gold production totaled 1.293 million ounces in the second quarter, down just 1% sequentially, despite seismic events at the company’s Cadia operation in Australia and lower grades at certain mines. Copper production fell 43% quarter-over-quarter to 17,000 tonnes, primarily impacted by the Cadia disruption. However, stronger output from Lihir, Boddington, and the Pueblo Viejo joint venture partially offset these impacts. Cadia operations returned to normal levels by mid-June.
On the cost side, gold by-product all-in sustaining costs (AISC) rose 58% sequentially to US$1,621 per ounce, driven mainly by lower production volumes, incremental expenditures during the Cadia shutdown, and higher royalty payments in Ghana. Nonetheless, this cost level remains below the company’s full-year guidance of US$1,680 per ounce, and year-to-date costs are tracking well below the annual target.
Strong Cash Flow and Robust Shareholder Returns
Benefiting from elevated gold prices and solid operations, Newmont generated US$2.2 billion in free cash flow during the quarter, a record high for any second quarter in the company’s history. Operating cash flow reached US$2.9 billion, while adjusted EBITDA came in at US$3.8 billion. As of quarter-end, the company held US$9.0 billion in cash, with total liquidity of US$13.0 billion and a net cash position of US$3.4 billion.
The company continues to ramp up shareholder returns. Since its last earnings call, Newmont has returned US$1.9 billion to shareholders through dividends and share repurchases, including US$1.7 billion in buybacks. Since February 2024, the company has repurchased more than 100 million shares, representing roughly 9% of its outstanding shares. The board declared a quarterly dividend of US$0.26 per share, payable on September 28.
Outlook: Full-Year Guidance Unchanged, Stronger Second Half Expected
Looking ahead, Newmont reaffirmed its full-year 2026 guidance, projecting attributable gold production of approximately 5.26 million ounces and gold AISC of around US$1,680 per ounce. The company expects second-half production to be slightly higher than the first half, with third-quarter output broadly in line with the second quarter. The fourth quarter is anticipated to be the strongest of the year, as Lihir completes planned maintenance and Ahafo North reaches full production.
On the long-term project front, the company secured key regulatory approvals from the Province of British Columbia for the Red Chris Block Cave project during the quarter, marking an important milestone as the project advances toward a final investment decision.
Despite gold price volatility and operational disruptions, Newmont has once again demonstrated its resilience through the gold price cycle, underpinned by the strength of its global asset portfolio and robust cash generation. With higher production expected in the second half and cost guidance remaining intact, the market will be closely watching whether the company can sustain this momentum through the remainder of 2026.
