Newmont: 3 Key Takeaways for Long-Term Investors
2026-10-23 11:20
•The Motley Fool Team •The Motley Fool
•••• • Axe Cap view
Newmont's Bold Moves Signal Gold Growth Ahead
Newmont’s Q3 results show cost cuts, strong cash flow, and expansion setting up production growth in 2027.
Newmont’s latest earnings report caught my eye. Free cash flow of nearly $2 billion is impressive, but what really stands out is the 10% cut in all-in sustaining costs. That’s the true measure of efficiency in gold mining and suggests they're getting more gold for less money. Their $1.95 billion buy-in to fully own parts of the Nevada Gold Mines JV shows confidence in long-term output. For South African investors, this matters because gold producers like AngloGold Ashanti compete in the same global market. If Newmont can improve margins and increase production in 2027, it puts pressure on global supply and could buoy local producers’ prices—and the rand—since a stronger gold sector generally supports the currency. That said, the plan hinges on steady metal prices and no major operational hiccups. A surprise dip in gold prices or cost inflation could derail growth. this is just our opinion and not financial advice
Watch AngloGold Ashanti closely as Newmont’s expansion may lift global gold sentiment, and hold a modest position in gold mining stocks while monitoring USD/ZAR fluctuations supported by gold price trends.
- AngloGold Ashanti
- USD/ZAR
- Gold price volatility
- Operational challenges in mining expansions
7/10
Newmont reported $1.9 billion in free cash flow for Q3 2026 and reduced its full-year gold production cost guidance by 10% to $1,520 per ounce. The company expanded its Nevada Gold Mines joint venture by acquiring three previously excluded properties for $1.95 billion. Production is expected to resume growth in 2027 following a planned production low point in 2026.
Our take is based on reporting first published by The Motley Fool.