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Can Newmont Maintain Earnings Momentum Despite Lower Production?
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Key Takeaways
NEM reported Q1 gold production of 1.3M ounces, down 16% year over year and 10% sequentially.
NEM expects 2026 gold production of 5.26M ounces, below 5.89M ounces recorded in 2025.
NEM forecasts second-quarter production to be below the first-quarter level.
Newmont Corporation (NEM - Free Report) saw lower gold production in the first quarter of 2026, partly linked to its strategic divestment of non-core assets. NEM reported a roughly 16% year-over-year and 10% sequential decline in attributable gold production to 1.3 million ounces.
Newmont expects second-quarter 2026 production to be below the first-quarter level. For 2026, the company anticipates gold production at about 5.26 million ounces, indicating a year-over-year decline from 5.89 million ounces in 2025. NEM expects lower production from Penasquito and Cadia in 2026 due to the site transitions. It also sees lower-than-expected production from Nevada Gold Mines and Pueblo Viejo. These will be partly offset by contributions from the newly commissioned Ahafo North mine.
Lower production is also expected to lead to higher unit costs in 2026. NEM expects all-in-sustaining costs (AISC) — a critical cost metric for miners — to be $1,680 per ounce on a by-product basis, a notable increase from $1,358 per ounce in 2025. This is expected to stem from lower sales volumes as a result of planned mine sequencing, higher royalties and production taxes, deferral of sustaining capital from 2025 into 2026 and inventory changes. The production decline and higher costs could undercut the company’s profitability goals.
Looking across the competitive landscape, Barrick Mining Corporation (B - Free Report) saw a 5% year-over-year decline in first-quarter gold production to 719,000 ounces. First-quarter production also fell 17% from 871,000 ounces in the fourth quarter of 2025. Barrick expects production to increase sequentially throughout the remainder of 2026, with second-quarter gold production projected in the band of 730,000-770,000 ounces. Barrick reaffirmed its production forecast for 2026, with attributable gold production expected in the range of 2.9-3.25 million ounces.
Agnico Eagle Mines Limited’s (AEM - Free Report) gold production fell nearly 6% year over year in the first quarter to 825,109 ounces, impacted by reduced output at Macassa and Meadowbank on lower grades. AEM expects gold production to be weighted to a stronger second half. For full-year 2026, Agnico Eagle maintained gold production expectations between 3.3 million and 3.5 million ounces.
The Zacks Rundown for NEM
Shares of Newmont have shot up 84.9% in the past year against the Zacks Mining – Gold industry’s rise of 49.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 9.58, a modest 0.4% discount to the industry average of 9.62X. 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 43.8% and 8.7%, 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 Maintain Earnings Momentum Despite Lower Production?
Key Takeaways
Newmont Corporation (NEM - Free Report) saw lower gold production in the first quarter of 2026, partly linked to its strategic divestment of non-core assets. NEM reported a roughly 16% year-over-year and 10% sequential decline in attributable gold production to 1.3 million ounces.
Newmont expects second-quarter 2026 production to be below the first-quarter level. For 2026, the company anticipates gold production at about 5.26 million ounces, indicating a year-over-year decline from 5.89 million ounces in 2025. NEM expects lower production from Penasquito and Cadia in 2026 due to the site transitions. It also sees lower-than-expected production from Nevada Gold Mines and Pueblo Viejo. These will be partly offset by contributions from the newly commissioned Ahafo North mine.
Lower production is also expected to lead to higher unit costs in 2026. NEM expects all-in-sustaining costs (AISC) — a critical cost metric for miners — to be $1,680 per ounce on a by-product basis, a notable increase from $1,358 per ounce in 2025. This is expected to stem from lower sales volumes as a result of planned mine sequencing, higher royalties and production taxes, deferral of sustaining capital from 2025 into 2026 and inventory changes. The production decline and higher costs could undercut the company’s profitability goals.
Looking across the competitive landscape, Barrick Mining Corporation (B - Free Report) saw a 5% year-over-year decline in first-quarter gold production to 719,000 ounces. First-quarter production also fell 17% from 871,000 ounces in the fourth quarter of 2025. Barrick expects production to increase sequentially throughout the remainder of 2026, with second-quarter gold production projected in the band of 730,000-770,000 ounces. Barrick reaffirmed its production forecast for 2026, with attributable gold production expected in the range of 2.9-3.25 million ounces.
Agnico Eagle Mines Limited’s (AEM - Free Report) gold production fell nearly 6% year over year in the first quarter to 825,109 ounces, impacted by reduced output at Macassa and Meadowbank on lower grades. AEM expects gold production to be weighted to a stronger second half. For full-year 2026, Agnico Eagle maintained gold production expectations between 3.3 million and 3.5 million ounces.
The Zacks Rundown for NEM
Shares of Newmont have shot up 84.9% in the past year against the Zacks Mining – Gold industry’s rise of 49.6%.
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 9.58, a modest 0.4% discount to the industry average of 9.62X. 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 43.8% and 8.7%, 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.