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Can Newmont Protect Margins Amid Higher Unit Costs in 2026?
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Key Takeaways
Newmont expects 2026 unit costs to rise as lower production lifts costs per ounce.
NEM cites mine sequencing, higher royalties, sustaining capital and inventory changes as cost drivers.
NEM sees a sequential rise in Q2 unit costs tied to mine spending, sales mix and oil prices.
Newmont Corporation’s (NEM - Free Report) gold costs applicable to sales (CAS) rose nearly 7% year over year to $ $1,307 per ounce on a co-product basis in the first quarter of 2026. All-in sustaining costs (AISC) — the most important cost metric of miners — were $1,709 per ounce for the same period, reflecting a roughly 4% year-over-year increase. Both metrics, however, declined on a by-product basis.
Lower production is expected to lead to higher unit costs in 2026. NEM expects to be $1,680 per ounce on a by-product basis, a notable increase from $1,358 per ounce in 2025. The expected increase is due to 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.
Newmont also sees a significant sequential increase in unit costs in the second quarter, partly due to increased sustaining capital spending, higher costs associated with sales at Boddington, Tanami, Lihir and Penasquito and increased oil prices. The production decline and higher costs could undercut the profitability goals.
Looking across the competitive landscape, Barrick Mining Corporation (B - Free Report) saw an 8% sequential increase in AISC in the first quarter, reaching $1,708 per ounce. For 2026, Barrick projects AISC in the range of $1,760-$1,950 per ounce, indicating a significant year-over-year increase at the midpoint compared with $1,637 in 2025. Barrick also expects cash costs per ounce to be $1,330-$1,470, up from $1,199 in 2025.
Agnico Eagle Mines Limited (AEM - Free Report) also remains exposed to higher production costs. AEM’s AISC were $1,483 per ounce in the first quarter, marking a roughly 26% year-over-year rise, impacted by higher total cash costs and an uptick in sustaining capital expenditures. Agnico Eagle forecasts AISC per ounce between $1,400 and $1,550 for 2026, suggesting a year-over-year increase at the midpoint of the range.
The Zacks Rundown for NEM
Shares of Newmont have shot up 62.4% in the past year against the Zacks Mining – Gold industry’s rise of 41.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 9.44, a modest 0.7% premium to the industry average of 9.37X. 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 35.3% and 11%, respectively. The EPS estimates for 2026 and 2027 have been trending lower 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 Protect Margins Amid Higher Unit Costs in 2026?
Key Takeaways
Newmont Corporation’s (NEM - Free Report) gold costs applicable to sales (CAS) rose nearly 7% year over year to $ $1,307 per ounce on a co-product basis in the first quarter of 2026. All-in sustaining costs (AISC) — the most important cost metric of miners — were $1,709 per ounce for the same period, reflecting a roughly 4% year-over-year increase. Both metrics, however, declined on a by-product basis.
Lower production is expected to lead to higher unit costs in 2026. NEM expects to be $1,680 per ounce on a by-product basis, a notable increase from $1,358 per ounce in 2025. The expected increase is due to 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.
Newmont also sees a significant sequential increase in unit costs in the second quarter, partly due to increased sustaining capital spending, higher costs associated with sales at Boddington, Tanami, Lihir and Penasquito and increased oil prices. The production decline and higher costs could undercut the profitability goals.
Looking across the competitive landscape, Barrick Mining Corporation (B - Free Report) saw an 8% sequential increase in AISC in the first quarter, reaching $1,708 per ounce. For 2026, Barrick projects AISC in the range of $1,760-$1,950 per ounce, indicating a significant year-over-year increase at the midpoint compared with $1,637 in 2025. Barrick also expects cash costs per ounce to be $1,330-$1,470, up from $1,199 in 2025.
Agnico Eagle Mines Limited (AEM - Free Report) also remains exposed to higher production costs. AEM’s AISC were $1,483 per ounce in the first quarter, marking a roughly 26% year-over-year rise, impacted by higher total cash costs and an uptick in sustaining capital expenditures. Agnico Eagle forecasts AISC per ounce between $1,400 and $1,550 for 2026, suggesting a year-over-year increase at the midpoint of the range.
The Zacks Rundown for NEM
Shares of Newmont have shot up 62.4% in the past year against the Zacks Mining – Gold industry’s rise of 41.5%.
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 9.44, a modest 0.7% premium to the industry average of 9.37X. 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 35.3% and 11%, respectively. The EPS estimates for 2026 and 2027 have been trending lower 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.