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Can NEM Maintain Earnings Momentum Amid Production Challenges?
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Key Takeaways
NEM's attributable gold production fell 13% year over year to 1.29 million ounces in the second quarter.
NEM expects 2026 gold output to decline to 5.26 million ounces, partly due to site transitions.
Higher 2026 AISC of $1,680 per ounce is expected as lower volumes and other costs pressure profitability.
Newmont Corporation (NEM - Free Report) saw lower gold production for the second quarter, partly linked to its strategic divestment of non-core assets. The company reported a roughly 13% year-over-year and 1% sequential decline in attributable gold production to 1.29 million ounces. Lower output from Cadia and reduced grades across certain mines impacted production.
Newmont expects third-quarter 2026 production to be largely in line with the second-quarter level. It sees gold production at about 5.26 million ounces for 2026, 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 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, indicating 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. The production decline and higher costs could undercut the company’s profitability goals.
Looking across the competitive landscape, Barrick Mining Corporation (B - Free Report) attributable gold production rose 11% sequentially to 796,000 ounces in the second quarter, exceeding its guidance range of 730,000 to 770,000 ounces. It was flat year over year. Barrick expects production to increase sequentially in the third quarter and again in the fourth quarter, driven by the Loulo-Gounkoto ramp-up, Goldrush and mine sequencing. Barrick maintained 2026 attributable gold production guidance of 2.9-3.25 million ounces.
Agnico Eagle Mines Limited’s (AEM - Free Report) gold production was 855,816 ounces in the second quarter, up around 4% sequentially. It was down roughly 1% from 866,029 ounces in the prior-year quarter. For full-year 2026, Agnico Eagle expects gold production near the lower end of its 3.3 million to 3.5 million ounces guidance, reflecting the preliminary redesign of the Barnat open pit. AEM expects the Barnat pit wall movement event to reduce gold production at Canadian Malartic by 60,000-80,000 ounces in the second half of 2026.
The Zacks Rundown for NEM
Shares of Newmont have shot up 68.7% in the past year against the Zacks Mining – Gold industry’s rise of 45.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 13.31, a modest 1.8% discount to the industry average of 13.56X. 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 30.7% and 10%, 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 NEM Maintain Earnings Momentum Amid Production Challenges?
Key Takeaways
Newmont Corporation (NEM - Free Report) saw lower gold production for the second quarter, partly linked to its strategic divestment of non-core assets. The company reported a roughly 13% year-over-year and 1% sequential decline in attributable gold production to 1.29 million ounces. Lower output from Cadia and reduced grades across certain mines impacted production.
Newmont expects third-quarter 2026 production to be largely in line with the second-quarter level. It sees gold production at about 5.26 million ounces for 2026, 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 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, indicating 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. The production decline and higher costs could undercut the company’s profitability goals.
Looking across the competitive landscape, Barrick Mining Corporation (B - Free Report) attributable gold production rose 11% sequentially to 796,000 ounces in the second quarter, exceeding its guidance range of 730,000 to 770,000 ounces. It was flat year over year. Barrick expects production to increase sequentially in the third quarter and again in the fourth quarter, driven by the Loulo-Gounkoto ramp-up, Goldrush and mine sequencing. Barrick maintained 2026 attributable gold production guidance of 2.9-3.25 million ounces.
Agnico Eagle Mines Limited’s (AEM - Free Report) gold production was 855,816 ounces in the second quarter, up around 4% sequentially. It was down roughly 1% from 866,029 ounces in the prior-year quarter. For full-year 2026, Agnico Eagle expects gold production near the lower end of its 3.3 million to 3.5 million ounces guidance, reflecting the preliminary redesign of the Barnat open pit. AEM expects the Barnat pit wall movement event to reduce gold production at Canadian Malartic by 60,000-80,000 ounces in the second half of 2026.
The Zacks Rundown for NEM
Shares of Newmont have shot up 68.7% in the past year against the Zacks Mining – Gold industry’s rise of 45.9%.
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 13.31, a modest 1.8% discount to the industry average of 13.56X. 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 30.7% and 10%, 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.