Newmont Corp. (NYSE:NEM) stock fell in premarket trading Friday despite the gold miner reporting better-than-expected third-quarter 2026 earnings and revenue.

The stock faced pressure from an analyst downgrade, concerns about rising costs and broader weakness in gold-mining equities.

Freedom Broker downgraded Newmont from Buy to Hold and lowered its price forecast to $116 from $130, citing limited near-term upside, cost inflation at Australian mines and operational risks at Lihir and Cadia.

Investors also weighed the potential impact of higher operating costs, lower co-product credits and increased development spending on future profit margins.

Meanwhile, Newmont announced amendments to its Nevada Gold Mines joint venture agreement with Barrick Mining Corp. (NYSE:B), involving a payment of approximately $1.95 billion.

Third-Quarter Earnings Beat Estimates

Newmont reported adjusted earnings of $2.20 per share, beating analysts’ consensus estimate of $2.11.

Revenue totaled $6.363 billion, exceeding Wall Street’s estimate of $6.278 billion.

The company returned $1.9 billion to shareholders through dividends and share repurchases since its previous earnings call. It also declared a quarterly dividend of 26 cents per share.

Newmont ended the quarter with $8.8 billion in cash.

Newmont Amends Nevada Gold Mines Agreement

Newmont amended its Nevada Gold Mines joint venture agreement with Barrick to include previously excluded assets, including Barrick’s Fourmile property and Newmont’s Fiberline and Mike properties.

The changes aim to align the partners’ interests and maximize value across the mining district.

The transaction is expected to close in the fourth quarter, with Newmont paying approximately $1.95 billion to Barrick.

Gold Production And Cash Flow Remain Strong

Newmont produced approximately 1.3 million ounces of gold, 23,000 tons of copper and 11 million ounces of silver during the quarter.

Operating cash flow reached $2.8 billion, while free cash flow totaled $1.9 billion.

Gold by-product costs applicable to sales were $832 per ounce. All-in sustaining costs (AISC) stood at $1,454 per ounce.

Red Chris Project Targets 2033 Production

Newmont expects to make a final investment decision on its Red Chris block cave project in British Columbia in early 2027, subject to board approval.

Construction is expected to begin in 2027, with commercial production targeted for 2033.

The project’s initial 13-year phase is expected to produce approximately 3 million ounces of gold and more than 850,000 metric tons of copper on a 100% project basis. Newmont owns 70% of the joint venture.

Following ramp-up, annual production is projected to reach 275,000 to 325,000 ounces of gold and 65,000 to 85,000 metric tons of copper.

Development capital is estimated at $4.2 billion to $4.8 billion on a 100% project basis.

Newmont Maintains 2026 Gold Production Outlook

Newmont remains on track to produce 5.3 million attributable ounces of gold in 2026.

Fourth-quarter production is expected to reach 1.4 million ounces, marking the company’s highest quarterly output of the year.

Full-year gold AISC guidance stands at approximately $1,520 per ounce, about 10% below the initial outlook.

However, Newmont expects fourth-quarter AISC to rise to approximately $1,900 per ounce.

The increase reflects the timing of sustaining capital spending, lower co-product credits and ongoing inflationary pressures, including higher fuel-related costs.

Lower silver production at Peñasquito is also expected to reduce co-product credits.

Newmont estimates that every $10-per-barrel change in oil prices would affect costs by approximately $110 million through fuel and other inputs.

Newmont Sees Production Rebound In 2027

Management expects gold production to resume growing in 2027 after reaching a projected low in 2026.

Production from Newmont’s managed portfolio is expected to increase by a low- to mid-single-digit percentage next year.

Growth will be supported by higher-grade ore at Lihir and Boddington, the Tanami expansion, Cerro Negro’s Vein Zone open pit and potentially higher output at Yanacocha.

However, the company expects unit costs to rise because of inflation and lower co-product credits.

Silver production at Peñasquito is projected to decline by approximately 30%, adding to cost pressures.

Sustaining capital spending is expected to remain broadly stable, while development spending could increase by approximately $500 million.

The additional investment will primarily support the Red Chris block cave project and the Lihir Nearshore Barrier Project.

Lower closure spending at Yanacocha is expected to free up approximately $200 million in cash flow in 2027, with the annual benefit increasing to approximately $400 million beginning in 2028.

NEM Price Action: Newmont shares were down 1.50% at $112.40 during premarket trading on Friday, according to Benzinga Pro data.

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