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Newmont shares sink despite earnings beat as 2026 guidance disappoints. Newmont's gold output fell 15% year over year to 1.42 million ounces, and the miner flagged $550 million in 2026 Yanacocha water-treatment spending plus fresh severance costs pressuring Q4 cash flow. Newmont just set a quarterly earnings record for gold miners. Investors sold the stock anyway, betting on what's still underground. Newmont beat Wall Street's third-quarter numbers by a wide margin on Thursday. Adjusted earnings came in at $1.71 a share against a consensus of $1.44, and revenue hit $5.52 billion versus the roughly $5.27 billion analysts expected. Shares fell anyway, tumbling nearly 7% in Friday pre-market trading, according to a report from iTiger's Stock Track. The culprit wasn't the quarter that just ended. It was the one coming next. Newmont told investors that 2026 gold production will land toward the low end of its previously guided range. Fourth-quarter free cash flow will take a hit too, from rising costs tied to water treatment work at its Yanacocha mine in Peru, plus severance payments the company accrued in the third quarter. Gold production for the quarter had already fallen 15% year over year, dropping to 1.42 million ounces from 1.67 million a year earlier, per the same report. Record profits, shrinking output. That's the disconnect the market priced in overnight. Here's the part that should sting more than the headline miss: gold itself hasn't been weak. Futures were trading around $4,150 to $4,300 an ounce in early October, according to market data cited in coverage of the report. That's down from the record close of $5,318 struck on January 29, but still comfortably in territory nobody had seen before this year. When your core commodity sits near all-time highs and your stock still drops 7% the next morning, the market isn't pricing in a cyclical problem. It's pricing in a company problem. The water treatment plants at Yanacocha aren't a line item you can defer. Newmont has pegged the total cost of building them at roughly $1.8 billion, with about $550 million of that earmarked for 2026 alone, according to the company's own disclosures. The mine, high in Peru's Cajamarca region, needs permanent water treatment infrastructure to manage its closure obligations regardless of whether gold is at $2,000 or $5,000 an ounce. That's a regulatory and environmental cost, not a market one, and it doesn't shrink when bullion prices climb. Northern Star Resources rejected a $27 billion takeover bid from South Africa's Gold Fields, calling it undervalued and highly opportunistic. Shares jumped over 9% as the board bet that gold prices and its own exploration upside are worth more than the offer reflected. - why gold mining stocks rejected takeover offers recently - Northern Star Resources rejects Gold Fields acquisition bid Layer severance on top of it. Newmont already booked $75 million in restructuring and severance costs in the fourth quarter of 2025. Alongside that came a $779 million impairment charge tied to its decision to indefinitely defer the Yanacocha Sulfides expansion project - a roughly $2 billion investment the company backed away from. The severance payments flagged for the current quarter echo that same pattern: a miner quietly shrinking its footprint at one of its legacy assets while gold prices do the opposite. An analyst summed it up: Newmont warning of weaker Q4 cash flow is disappointing when gold is above $4,000 an ounce. It hasn't, not for Newmont. The company still managed record free cash flow in an earlier quarter this year even as gold corrected more than 13% at one point, a resilience that left some investors arguing the stock looked undervalued relative to its cash generation. That argument gets harder to make now. The same company turns around a quarter later and tells you the next one will be worse - for reasons that have nothing to do with the gold price and everything to do with how the mines themselves are aging. Newmont isn't alone in facing rising unit costs as ore grades decline at legacy sites. But it is the largest gold producer on the planet, and its guidance functions as a signal for the whole sector. A 15% drop in quarterly output at that scale is not noise. It's the clearest evidence yet that even the biggest miner in the business can't simply ride record prices to record growth. The gap between what gold is worth and what it costs to get it out of the ground just got a lot more visible. Investors reacted exactly the way you'd expect once they saw it. Gold broke below $4,000 an ounce on June 24 for the first time since November, falling roughly 20% from its January record as a US-Iran ceasefire, a technology stock selloff, and sharply repriced Fed rate expectations hit simultaneously. Silver dropped below $60 in the same session, extending its own steep correction from January highs. The macro... - why gold prices fell below 4000 - Fed pivot trade unravels gold market Join the discussion. No replies yet. Start the discussion. Dave Barr is a professional Marketing Strategist With Over 6 Years Of Experience in PR. His primary area of expertise is public relations and social branding. Dave has been associated with various content projects from across the world on a regular basis. He has also had associations with big and reputed news networks. Dave contributes to Startup Fortune in the Business, Marketing and Technology sections.

Grafton options Chile gold projects from Newmont. Sep. 25, 2026 06:52AM PST Grafton will acquire the Poseidon and Jabali gold projects in Chile, forming a large exploration area with strong gold-silver-copper potential and untested targets. Canadian explorer Grafton Resources (CSE:GFT,OTCQB:GFTFF) secured an exclusive option to acquire the Poseidon and Jabali gold projects in Chile from Newmont (NYSE:NEM,ASX:NEM), consolidating a district-scale exploration package in the Andean mineral belt. Under the September 21 agreement, Grafton gains the right to take 100 percent ownership of both properties through its local subsidiary. The acquisition physically connects the Poseidon project in Chile's V Region to Grafton's existing Alicahue asset, forming a contiguous 14,383-hectare concession block. Newmont's prior exploration at Poseidon established a clear continuity of vein trends and left a pipeline of untested drill targets. A surface program of 2,350 rock chip samples returned grades up to 234 grams per ton of gold and 1,500 grams per ton of silver. Geological mapping and a 2024 structural report also identified a 15-kilometer strike length of potential gold-bearing veins tied to the regional Pocuro Fault Zone. Consolidated data points to widespread epithermal gold-silver-copper mineralization across the unified Alicahue-Poseidon district. The transaction also delivers the Jabali gold project in Chile's XI Region. The property remains completely undrilled, though Newmont previously completed the necessary drill preparation infrastructure. "I am extremely excited to announce a pivotal transaction for Grafton that gives the Company access to an exceptional exploration portfolio," Chairman and CEO Campbell Smyth said in the announcement. "Poseidon and Alicahue together represent an identified by Grafton epithermal vein cluster with gold-silver-copper mineralization potential. Jabali has identified potential high sulfidation mineralization that can be tested quickly. We look forward to moving quickly on work programs on both assets." For Denver-based Newmont, the divestment continues its ongoing corporate restructuring. In August, the company settled a joint-venture dispute with Barrick Mining (TSX:ABX,NYSE:B), agreeing to a US$1.95 billion truce. Newmont consented to Barrick's planned North American initial public offering in exchange for the cash payment and Barrick's agreement to contribute its Fourmile gold project into the Nevada Gold Mines joint venture. The company meanwhile reported US$2.2 billion in second-quarter free cash flow, US$2.2 billion in adjusted net income, and US$3.8 billion in adjusted EBITDA, alongside 1.29 million attributable ounces of gold produced during the quarter. Don't forget to follow Investing News @INN_Resource for real-time news updates! Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article. From Your Site Articles