Newmont slips despite Q3 earnings beat as gold production drops 15%

[Underground train in mine, carts in gold, silver and copper mine.]
TomasSereda/iStock via Getty Images

Newmont (NYSE:NEM [https://seekingalpha.com/symbol/NEM]) -1.8% post-market Thursday even after reporting better than expected Q3 adjusted earnings [https://seekingalpha.com/news/4507839-newmont-non-gaap-eps-of-1_71-beats-by-0_27-revenue-of-5_52b-beats-by-250m] and revenues, as lower production levels prevented the miner from taking full advantage of record-high gold prices.

Q3 profit doubled to $1.83 billion, or $1.67/share, from $922 million, or $0.80/share, in the year-earlier quarter, while adjusted EPS of $1.71 comfortably exceeded analyst estimates, and revenues that rose 20% Y/Y to $5.52 billion also topped consensus.

Newmont (NYSE:NEM [https://seekingalpha.com/symbol/NEM]) said its Q3 average realized price of gold increased to $3,539/oz from $2,518/oz a year earlier, but attributable gold production fell 15% to 1.42 million oz from 1.67 million oz in the prior-year period, affected by lower ore grades and planned maintenance at its Penasquito mine in Mexico and Lihir mine in Papua New Guinea, as well as the completion of mining at the Subika open pit in Ahafo South early in the quarter.

Q3 all-in sustaining costs for gold fell 2.8% to $1,566/oz, as the company sought to rein in spending after the $15 billion purchase of Newcrest Mining that expanded its portfolio to ~20 mines.

"The company expects to realize the full benefits of its cost savings initiatives, which will be reflected in the 2026 guidance to be provided next year," Newmont (NEM [https://seekingalpha.com/symbol/NEM]) said.

However, the company has said it expects capital spending to increase in 2026 as it advances key projects such as tailings work at Cadia and a potential expansion at Red Chris.

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