Newmont beats Q1 profit estimates as record gold prices offset output drop
By Sumit Saha
April 23 (Reuters) - Newmont beat Wall Street estimates for first-quarter profit on Thursday as record gold prices helped offset lower production, though the world's largest gold miner warned of a slightly lower output and elevated costs in the current quarter.
Newmont expects to generate 23% of total attributable production in the second quarter of 2026, slightly below the first quarter, while unit costs are set to rise on higher sustaining capital spending, lower silver output and increased costs at the Boddington, Tanami, Lihir and Penasquito mines.
Costs may also be affected by higher oil prices and the impact of a full quarter of the increased royalty in Ghana, the company said.
"For every $10 per barrel change in oil prices, we would expect an approximately $60 million impact on costs, which equates to around a $12 per ounce impact on all‑in sustaining costs," Newmont's interim CFO Peter Wexler said in a post-earnings call.
Shares of the company rose nearly 1% at $112.20 in trading after the bell.
GOLD PRICES OFFSET PRODUCTION
Gold prices hit record highs during the first quarter on safe-haven demand and rate-cut bets, before easing after the U.S.–Israel conflict with Iran sparked a crude-led inflation scare, though prices stayed well above levels seen a year ago.
The quarterly average realized price for gold was at $4,900 per ounce, compared with $2,944 per ounce in the year-ago period.
Newmont's quarterly attributable gold production fell to 1.30 million ounces from 1.54 million ounces a year earlier, reflecting lower output at Boddington due to bushfires, weaker grades and heavy rainfall at Tanami, and lower grades and planned maintenance at Lihir and Cerro Negro.
The company also authorized an additional $6 billion share repurchase program after fully executing its previous buyback plan.
On an adjusted basis, the company earned $2.90 per share for the quarter ended March 31, compared with analysts' average estimate of $2.18 per share, according to data compiled by LSEG.
(Reporting by Sumit Saha in Bengaluru; Editing by Pooja Desai)