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Can Newmont's Record Free Cash Flow Momentum Carry Into Q2?
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Key Takeaways
Newmont posted record Q1 free cash flow of $3.1B, up 161% year over year on strong operations.
NEM expects strong 2026 free cash flow backed by gold price strength and its asset portfolio.
NEM is using strong cash flows to fund growth projects, dividends and share buybacks.
Newmont Corporation (NEM - Free Report) logged a record quarterly free cash flow in the first quarter of 2026, underpinned by its operational efficiency, the strength of its asset portfolio and higher gold and silver prices. Its free cash flow surged 161% year over year to $3.1 billion in the first quarter, led by an increase in net cash from operating activities and lower capital investment. Net cash from operating activities amounted to $3.8 billion in the first quarter, up from $2 billion in the year-ago quarter.
NEM, on its first-quarter call, said that it expects to continue delivering strong free cash flows in 2026, aided by its world-class portfolio. Newmont stands to benefit from the strength in gold prices, which should drive its profitability and cash flow generation.
NEM’s strong liquidity position and substantial cash flows allow it to reinvest in business, meet short-term debt obligations and drive shareholder value. Its enhanced capital allocation framework, backed by record free cash flow generation, has resulted in steady investment in organic growth projects and incremental returns to its shareholders through dividends and share buybacks, leveraging a favorable commodity pricing environment.
Among its major peers, Barrick Mining Corporation (B - Free Report) generates strong cash flows, with a significant portion funneled back to investors. In the first quarter, Barrick generated strong operating cash flows of roughly $2.6 billion, up 111% year over year. Barrick’s attributable free cash flow shot up 195% year over year to around $1.2 billion.
Agnico Eagle Mines Limited's (AEM - Free Report) first-quarter free cash flow climbed 23% year over year to roughly $732 million. The upside was backed by the strength in gold prices and AEM’s robust operational results. Agnico Eagle’s operating cash flow was roughly $1.3 billion in the quarter, up around 29% from the year-ago quarter.
The Zacks Rundown for NEM
Shares of Newmont have gained 34% in the past six months compared with the Zacks Mining – Gold industry’s rise of 15.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 10.9, a roughly 2.9% premium to the industry average of 10.59X. It carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NEM’s 2026 and 2027 earnings implies a year-over-year rise of 41.2% and 9.6%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
NEM stock currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Can Newmont's Record Free Cash Flow Momentum Carry Into Q2?
Key Takeaways
Newmont Corporation (NEM - Free Report) logged a record quarterly free cash flow in the first quarter of 2026, underpinned by its operational efficiency, the strength of its asset portfolio and higher gold and silver prices. Its free cash flow surged 161% year over year to $3.1 billion in the first quarter, led by an increase in net cash from operating activities and lower capital investment. Net cash from operating activities amounted to $3.8 billion in the first quarter, up from $2 billion in the year-ago quarter.
NEM, on its first-quarter call, said that it expects to continue delivering strong free cash flows in 2026, aided by its world-class portfolio. Newmont stands to benefit from the strength in gold prices, which should drive its profitability and cash flow generation.
NEM’s strong liquidity position and substantial cash flows allow it to reinvest in business, meet short-term debt obligations and drive shareholder value. Its enhanced capital allocation framework, backed by record free cash flow generation, has resulted in steady investment in organic growth projects and incremental returns to its shareholders through dividends and share buybacks, leveraging a favorable commodity pricing environment.
Among its major peers, Barrick Mining Corporation (B - Free Report) generates strong cash flows, with a significant portion funneled back to investors. In the first quarter, Barrick generated strong operating cash flows of roughly $2.6 billion, up 111% year over year. Barrick’s attributable free cash flow shot up 195% year over year to around $1.2 billion.
Agnico Eagle Mines Limited's (AEM - Free Report) first-quarter free cash flow climbed 23% year over year to roughly $732 million. The upside was backed by the strength in gold prices and AEM’s robust operational results. Agnico Eagle’s operating cash flow was roughly $1.3 billion in the quarter, up around 29% from the year-ago quarter.
The Zacks Rundown for NEM
Shares of Newmont have gained 34% in the past six months compared with the Zacks Mining – Gold industry’s rise of 15.1%.
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 10.9, a roughly 2.9% premium to the industry average of 10.59X. It carries a Value Score of B.
The Zacks Consensus Estimate for NEM’s 2026 and 2027 earnings implies a year-over-year rise of 41.2% and 9.6%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
NEM stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.