Newmont Q3 results beat, but warns rise in Q4 unit costsn 

Overview

• US gold miner's Q3 revenue rose and beat analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company returned $1.9 bln to shareholders, reducing share count by 10% since Feb 2024

Outlook

• Company lowers 2026 gold by-product cost guidance to $925 per ounce for CAS and $1,520 for AISC, keeps 5.3 million ounce production and capital guidance, but warns Q4 unit costs will rise

• Company improves 2026 gold by-product CAS guidance to $925/oz and AISC to $1,520/oz

• Newmont warns El Niño-related drought may impact Lihir production and costs in Q4

Result Drivers

• PRODUCTION GAINS - Higher gold output at Cadia, Brucejack and Peñasquito offset declines at Lihir, Boddington and Yanacocha

• COST IMPROVEMENTS - Lower gold by-product costs driven by higher volumes and copper prices, partly offset by lower silver prices and higher diesel costs

• REVENUE AND TAXES - Higher gold sales volumes, improved copper prices and lower tax expense boosted net income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the gold peer group is "buy"

• Wall Street's median 12-month price target for Newmont Corporation is $140.00, about 19.5% above its October 21 closing price of $117.18

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Oct 20 - Canada's Altius Minerals sees record Q3 royalty revenue

• Oct 21 - El Niño could be strongest in 40 years, UN weather agency chief says

• Oct 21 - Saudi crude oil exports hit five-month high in August, data shows

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)