Newmont Shares Drop as Weaker Gold Price Overshadows Strong Quarterly Results
Newmont reported adjusted earnings per share of $2.20, beating expectations, but its stock fell about 4% as gold prices retreated toward $4,000 an ounce. The company's guidance assumes higher gold prices, and management expects fourth-quarter all-in sustaining costs to rise to $1,900 an ounce. Even at lower gold prices, Newmont projects a sizable margin above those costs.
Newmont’s quarterly beat included adjusted EPS of $2.20 versus $1.94 expected and $1.71 a year earlier, plus $1.9 billion in free cash flow. Full-year all-in sustaining cost guidance improved to $1,520 an ounce, while realized gold averaged $4,317.
The company’s 2026 outlook assumes $4,500 gold, and each $100 shift in the metal changes annual pretax results by roughly $505 million. Fourth-quarter AISC is expected at $1,900, with higher sustaining capital and lower Peñasquito silver output; Red Chris development spending also rises.
The share-price reaction may mainly affect Newmont investors and gold-miner fund holders, who could see near-term volatility even after an earnings beat. If lower gold prices persist, tighter margins might influence spending decisions at mines, potentially affecting workers and communities tied to operations. Because Newmont still projects a large cost cushion, immediate operational disruption seems less likely; broader effects may depend on gold’s path and the Fed’s next move.