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Can Newmont's Strong Free Cash Flow Momentum Carry Into Q4?
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Key Takeaways
Newmont's Q3 free cash flow jumped 22% year over year to $1.91 billion.
Newmont generated roughly $7.3 billion in free cash flow in the first nine months of 2026.
Higher realized prices and stronger Q4 production could support cash flows.
Newmont Corporation (NEM - Free Report) logged a strong quarterly free cash flow in the third quarter of 2026, supported by its operational efficiency, the strength of its asset portfolio and higher metal prices. Its free cash flow climbed 22% year over year to $1.91 billion, led by an increase in net cash from operating activities. Net cash provided by operating activities increased 20.5% year over year to $2.77 billion.
In the first nine months of 2026, Newmont generated free cash flow of roughly $7.3 billion, matching the full-year 2025 level. With the fourth quarter expected to be its strongest production quarter of 2026, the company sees meaningful cash flow generation. NEM, on its third-quarter call, said that it remains focused on delivering improved 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, Kinross Gold Corporation (KGC - Free Report) generated operating cash flow of $714.4 million in the third quarter, down from $1.02 billion a year ago. KGC’s attributable adjusted operating cash flow was $830.9 million compared with $965.5 million in the prior-year period. Kinross’ attributable free cash flow declined to $281.3 million from $686.7 million, while attributable adjusted free cash flow decreased to $391.4 million from $657.9 million. These measures were affected by the timing of sales and increased capital spending.
Agnico Eagle Mines Limited (AEM - Free Report) generated third-quarter free cash flow of roughly $852 million, down around 28% year over year. The downside reflects unfavorable working capital movements and AEM’s higher development spending related to the Hope Bay, Odyssey and Detour Lake projects. Agnico Eagle’s operating cash flow totaled $1.76 billion, down 3.4% from $1.82 billion a year ago.
The Zacks Rundown for NEM
Shares of Newmont have rallied 36.3% in the past year compared with the Zacks Mining – Gold industry’s rise of 13.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 11.19, modestly above the industry average of 11.1X. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NEM’s 2026 earnings implies a year-over-year rise of 32.2%. The EPS estimates for 2026 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 Strong Free Cash Flow Momentum Carry Into Q4?
Key Takeaways
Newmont Corporation (NEM - Free Report) logged a strong quarterly free cash flow in the third quarter of 2026, supported by its operational efficiency, the strength of its asset portfolio and higher metal prices. Its free cash flow climbed 22% year over year to $1.91 billion, led by an increase in net cash from operating activities. Net cash provided by operating activities increased 20.5% year over year to $2.77 billion.
In the first nine months of 2026, Newmont generated free cash flow of roughly $7.3 billion, matching the full-year 2025 level. With the fourth quarter expected to be its strongest production quarter of 2026, the company sees meaningful cash flow generation. NEM, on its third-quarter call, said that it remains focused on delivering improved 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, Kinross Gold Corporation (KGC - Free Report) generated operating cash flow of $714.4 million in the third quarter, down from $1.02 billion a year ago. KGC’s attributable adjusted operating cash flow was $830.9 million compared with $965.5 million in the prior-year period. Kinross’ attributable free cash flow declined to $281.3 million from $686.7 million, while attributable adjusted free cash flow decreased to $391.4 million from $657.9 million. These measures were affected by the timing of sales and increased capital spending.
Agnico Eagle Mines Limited (AEM - Free Report) generated third-quarter free cash flow of roughly $852 million, down around 28% year over year. The downside reflects unfavorable working capital movements and AEM’s higher development spending related to the Hope Bay, Odyssey and Detour Lake projects. Agnico Eagle’s operating cash flow totaled $1.76 billion, down 3.4% from $1.82 billion a year ago.
The Zacks Rundown for NEM
Shares of Newmont have rallied 36.3% in the past year compared with the Zacks Mining – Gold industry’s rise of 13.6%.
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 11.19, modestly above the industry average of 11.1X. It carries a Value Score of C.
The Zacks Consensus Estimate for NEM’s 2026 earnings implies a year-over-year rise of 32.2%. The EPS estimates for 2026 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.