Newmont Confirms Barrick Dispute Remains Unresolved as Notice of Default Stands, While Record Free Cash Flow Fuels Aggressive Buybacks
Q2 2026 earnings call, July 23, 2026
Newmont closed out the second quarter with $2.2 billion in free cash flow, a quarterly record, but the headline for investors sitting closest to the stock may be what CEO Natascha Viljoen would not say. Addressing the company's ongoing dispute with Barrick over the Nevada Gold Mines joint venture, Viljoen confirmed that despite months of direct engagement, "several key issues" remain unresolved, and that Newmont's notice of default against Barrick still stands with no fixed deadline attached to enforcement. Analyst Daniel Major of UBS pressed specifically on whether a time line existed for legal action; Viljoen's answer was a flat "yes, it's still the case," confirming Newmont retains full optionality on enforcement timing.
The dispute centers on management and past performance of the JV, a proposed IPO, and the contribution process for excluded properties, including the Fourmile discovery. Bank of America's Lawson Winder raised a technical but consequential point: the market may be mispricing the capital Newmont owes Barrick to fold Fourmile into NGM because it is ignoring synergy value from Newmont's 38.5% interest in existing NGM processing infrastructure. Viljoen confirmed the market's assumption is likely wrong, stating explicitly that "there will be benefit from the synergies out of the NGM operations that should be — that will contribute to capital benefit, and that should offset against any capital requirement from Newmont." That is a materially different framing than a gross capital payment, and one that could reset how sell-side models the eventual settlement.
Leadership Overhaul Lands as Company Enters "Next Phase"
Newmont used the call to formalize a leadership reset following Peter Wexler's year as interim CFO. Brian Tabolt, a Newmont veteran since 2021 and most recently Chief Accounting Officer, steps into the CFO seat. Mark Rodgers becomes Chief Operating Officer overseeing all 12 managed operations, Dave Thornton takes the newly elevated Chief Technical Officer role spanning exploration through digital capabilities, and David Fry becomes EVP of Project Development, a newly created position reflecting the scale of Newmont's build-out pipeline at Red Chris, Lihir and Tanami. Viljoen framed the moves as continuity rather than change, noting the appointees "know our business best" and have shaped the company's current strategy from within, but the timing, alongside an unresolved Barrick standoff and a CFO transition, will draw scrutiny on execution risk into 2027.
Operating Leverage Still the Core Investment Story
The quarter's financial engine was gold price leverage. Newmont realized $4,414 per ounce, up roughly $1,100 or 33% year-over-year, while absolute costs applicable to sales rose just 4%. That spread drove $3.8 billion of adjusted EBITDA and $2.10 of adjusted EPS. All-in sustaining costs came in at $1,621 per ounce, comfortably inside full-year guidance of $1,680, even as CFO Tabolt flagged that oil near $100 a barrel, well above the $70 assumption baked into 2026 guidance, is already flowing through diesel costs with a lag. Every $10 per barrel move in oil adds roughly $60 million annually to Newmont's cost base, and indirect cost categories including explosives, cyanide and contractor labor remain under close watch, though Tabolt characterized the company as still in "a monitoring stage" rather than seeing acute escalation.
Management pointed to concrete productivity offsets rather than relying solely on price: nearly 50 mining production units have been parked portfolio-wide without hurting output, Cerro Negro lifted underground productive time per shift by about 15%, and targeted investment improved milling efficiency at Ahafo North.
Capital Returns Accelerate, Dividend Increase Signaled
Newmont has returned $1.9 billion to shareholders since the last call, including $1.7 billion of buybacks under the $6 billion authorization approved in April, of which more than $600 million was repurchased in July alone. The company has now bought back over 100 million shares, roughly 9% of shares outstanding, since launching the program a little over two years ago. Tabolt indicated the capital return formula, based on repurchases completed to date, would currently support raising the quarterly dividend to $0.27 per share, an 8% increase, at the Board's annual review in February 2027, though he stressed the increase is not yet approved. Net cash ended the quarter at $3.4 billion, modestly above the top of the company's $1 billion to $3 billion target range, and Tabolt acknowledged buybacks could outpace free cash flow in the second half as the company works the balance back toward target.
Red Chris Clears Regulatory Hurdle, But Capital Costs Are Rising
The Red Chris block cave project received an amended Environmental Assessment Certificate from British Columbia through a consent-based process with the Tahltan Nation, clearing a major hurdle ahead of a targeted board approval and final investment decision later this year. Viljoen was candid that capital costs will land above the original Newcrest-era estimates, driven by sector-wide project cost inflation, though she said Newmont's own re-underwriting of the feasibility study, prompted by a fall of ground event last September, has improved the design and economics even against a higher capital number. On the $500 million commitment from Canada's Major Project Office, terms are still being finalized under an MOU and management would not characterize whether it will land as a grant, loan or equity instrument.
Cadia Recovery on Track, No Guidance Impact
Following the April 14 seismic event, Newmont's two operating caves at Cadia resumed production in mid-June and have returned to normal development rates, with the company reiterating no impact to full-year production guidance. Cave establishment, as opposed to ongoing production, remains paused at both new panel caves while Newmont recalibrates seismic models and safety controls with regulators; Viljoen drew a distinction between mature caves, which have returned to background seismicity, and newly established caves, which inherently carry elevated seismic activity during construction. Development capital tied to Cadia is expected to increase in the second half as work resumes on the panel cave projects.
Ghana Risk Front and Center, Direct Engagement Underway
Asked about newly added Ghana risk disclosures, Viljoen disclosed she personally met with Ghana's President within the last week, alongside a separate meeting between her team and the Minister of Lands and Natural Resources, and that the two sides have agreed to form a working group aimed at a forward-looking agreement to provide investment stability. The comments suggest Newmont sees a live and material risk around royalty and fiscal terms in a jurisdiction hosting both Ahafo North and Ahafo South, though management characterized the government's posture as balancing local economic development against protecting long-term investor interests.
Path Back to 6 Million Ounces Doesn't Hinge on Cadia
Responding to Goldman Sachs' Hugo Nicolaci, Viljoen pushed back on the idea that Newmont's medium-term production recovery depends heavily on the Cadia cave ramp, noting the company has multiple levers including Ahafo North reaching full run rate at 350,000 ounces long-term, Cerro Negro and Tanami expansions, high-grade phases at Boddington, and the Lihir Nearshore Barrier unlocking access to more than 5 million ounces starting in 2028. On the portfolio itself, Scotiabank's Tanya Jakusconek probed whether any of the 12 managed operations, or slower-moving growth options like Wafi-Golpu, Peru or Chile, might be divestment candidates. Viljoen said all 12 current operations "deserve their place in the portfolio" and can compete for capital, while acknowledging Wafi-Golpu sits "on the outer end" of the development pipeline, effectively a low near-term priority rather than a sale candidate.