Oct 23 (Reuters) - Newmont beat third-quarter profit estimates on Thursday, as record-high gold prices helped offset its weaker production, but warned that fourth-quarter free cash flow would take a hit due to higher spending.
The world's largest gold miner said free cash flow in the ongoing quarter would be "adversely impacted" by rising costs tied to construction of water treatment facilities at Yanacocha and planned severance payments accrued in the third quarter.
Shares of the company fell 2% in extended trading following the results.
"Expectations were high. Free cash flow was slightly below Q2, which had a lower average gold price even though it was still a record third quarter," said Tracey Ryniec, stock strategist at Zacks Investment Research.
"Now Newmont is warning Q4 cash flow will be weaker, which is disappointing when gold is above $4,000 an ounce. The Street is asking, if you're not crushing it now, when will you?"
Newmont said its 2026 gold production is expected to be toward the lower end of 2025's forecast.
Gold prices have repeatedly set new records this year as investors flocked to the safe-haven asset amid U.S. President Donald Trump's trade policies and geopolitical tensions.
The company realized an average gold price of $3,539 per ounce in the quarter ended September 30, up from $2,518 a year earlier.
The price rally helped cushion a 15% decline in output to 1.42 million ounces, hit by lower ore grades and maintenance at its Penasquito and Lihir mines and the completion of mining at Subika in Ghana.
The decline follows restructuring after the company's $17.14 billion acquisition of Australian miner Newcrest, as Newmont trims non-core assets to reduce debt.
All-in sustaining costs fell about 2.8% to $1,566 per ounce, reflecting stronger pricing and operational efficiencies.
The company expects higher capital spending in 2026 as it advances tailings work at Cadia and considers a Red Chris expansion.
Newmont last month appointed Natascha Viljoen as its first female chief executive, succeeding Tom Palmer.