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Lab Report | July 27 Deep Dive on Newmont

CEO.CA Jul 27, 2026 9:55

Summary

Newmont produced 1.3 million attributable gold ounces in Q2 2026 and generated record quarterly free cash flow of $2.2 billion.

AISC (all-in sustaining cost — what it really costs to produce an ounce) sits at $1,620 per ounce on a gold-equivalent basis, tracking below guidance.

The host argues Newmont's sale of tier-2 assets and focus on tier-1 margins point to a more bullish Lassonde Curve trajectory ahead.

Newmont returned $1.9 billion to shareholders, but the host would prioritize retiring significant debt over buybacks and dividends.

Regulatory approval for a key block cave project adds a future driver as the host expects lower rates and renewed QE to lift gold.

Key points on Newmont

  • The host highlights Q2 2026 results from the July 23 release: about 1.3 million attributable gold ounces produced and record second-quarter free cash flow of $2.2 billion, second only to Q1's all-time record.
  • Management is on track for full-year 2026 guidance of 5.3 million attributable gold ounces, with year-to-date costs tracking well below guidance and an all-in sustaining cost of $1,620 per ounce on a gold-equivalent basis including 7 million ounces of silver and 17,000 tons of copper.
  • The company returned $1.9 billion to shareholders in the quarter via dividends and buybacks (100 million shares repurchased since 2024), ending Q2 with $9 billion in cash, $13 billion of total liquidity and a $3.4 billion net cash position.
  • The host notes regulatory approval for the Red Chris block cave project, which he calls an important future driver for the company.
  • On the host's Lassonde Curve framework, Newmont is positioned for what he expects to be a more bullish trajectory after selling tier-2 assets and focusing on its best-margin tier-1 assets.

Natascha Viljoen's takeaways

  • Top takeaway The host introduces her as Newmont's new president and CEO, in the role only a few months as of this July 27, 2026 video, presiding over what he calls another quarter of strong operational and financial performance.
  • Under her the company reaffirmed it is on track for full-year 2026 guidance, with record second-quarter free cash flow of $2.2 billion cited as the standout number.

Allan Barry Laboucan's takeaways

  • Top takeaway The host is very bullish on gold, expecting lower interest rates, renewed quantitative easing and the scale of global debt to push prices higher.
  • He argues Newmont has moved back onto a bullish path on his Lassonde Curve framework after selling tier-2 assets and concentrating on its best-margin tier-1 assets.
  • He would rather see Newmont pay down its significant debt than fund buybacks and dividends, though he thinks the company is moving in the right direction.
  • He observes the stock barely improved in the two trading days after the strong Q2 report, which he attributes more to the gold price than to the results themselves.