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Can Newmont's Record Free Cash Flow Momentum Carry Into Q3?
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Key Takeaways
Newmont posted record Q2 free cash flow of $2.2B, up 29% year over year on strong operations.
NEM expects strong 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 second quarter of 2026, supported by its operational efficiency, the strength of its asset portfolio and higher metal prices. Its free cash flow climbed 29% year over year to a record $2.2 billion, led by an increase in net cash from operating activities. Net cash provided by operating activities amounted to $2.9 billion, up roughly 23% from the year-ago quarter.
NEM, on its second-quarter call, said that it expects to continue delivering strong free cash flows, aided by its world-class portfolio. Newmont stands to benefit from higher realized 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 investments 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 second quarter, Barrick’s operating cash flow was $1.7 billion, up 28% year over year, and the free cash flow was $515 million, up 30%. Barrick’s attributable free cash flow reached $1.35 billion in the first half of 2026, up 211% year over year.
Agnico Eagle Mines Limited (AEM - Free Report) generated record second-quarter free cash flow of roughly $1.3 billion. The upside was backed by higher realized gold prices, cost control and AEM’s strong operational results. Agnico Eagle’s operating cash flow was roughly $2.1 billion in the second quarter, up around 16% from the year-ago quarter.
The Zacks Rundown for NEM
Shares of Newmont have rallied 52.4% in the past year compared with the Zacks Mining – Gold industry’s rise of 27.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 12.98, a roughly 1.4% discount to the industry average of 13.17X. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NEM’s 2026 and 2027 earnings implies a year-over-year rise of 31.9% and 10.9%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 30 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 Q3?
Key Takeaways
Newmont Corporation (NEM - Free Report) logged a record quarterly free cash flow in the second quarter of 2026, supported by its operational efficiency, the strength of its asset portfolio and higher metal prices. Its free cash flow climbed 29% year over year to a record $2.2 billion, led by an increase in net cash from operating activities. Net cash provided by operating activities amounted to $2.9 billion, up roughly 23% from the year-ago quarter.
NEM, on its second-quarter call, said that it expects to continue delivering strong free cash flows, aided by its world-class portfolio. Newmont stands to benefit from higher realized 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 investments 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 second quarter, Barrick’s operating cash flow was $1.7 billion, up 28% year over year, and the free cash flow was $515 million, up 30%. Barrick’s attributable free cash flow reached $1.35 billion in the first half of 2026, up 211% year over year.
Agnico Eagle Mines Limited (AEM - Free Report) generated record second-quarter free cash flow of roughly $1.3 billion. The upside was backed by higher realized gold prices, cost control and AEM’s strong operational results. Agnico Eagle’s operating cash flow was roughly $2.1 billion in the second quarter, up around 16% from the year-ago quarter.
The Zacks Rundown for NEM
Shares of Newmont have rallied 52.4% in the past year compared with the Zacks Mining – Gold industry’s rise of 27.9%.
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 12.98, a roughly 1.4% discount to the industry average of 13.17X. It carries a Value Score of C.
The Zacks Consensus Estimate for NEM’s 2026 and 2027 earnings implies a year-over-year rise of 31.9% and 10.9%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 30 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.