Newmont (NEM) Q3 2026 Earnings Call: Q&A Summary

Q: Daniel Major from UBS asked for more detail on the scope changes for the Red Chris project and the potential timeline and nature of future expansions.

A: Natascha Viljoen, President and CEO, stated that the feasibility study reflects improved geotechnical understanding, a reorientated cave to avoid major faults, and an increased processing capacity from 9 million tonnes per year to 15 million tonnes per year. She noted that about 40% of the initial capital will support future expansions like Macro Block 3 and East Reach within a 70-year endowment.

Q: Daniel Major from UBS asked to clarify if the 40% reusable capital refers to mine development capital rather than surface infrastructure.

A: Natascha Viljoen, President and CEO, clarified that it includes both surface infrastructure and underground materials handling infrastructure reused for future expansions.

Q: Richard Garchitorena from Barclays asked how the Red Chris development CapEx will flow over the next six years and if it will be linear.

A: Natascha Viljoen, President and CEO, stated that 50% of the expected capital increase is associated with Red Chris and a linear spend profile is safe to assume until final details are provided at final investment decision in February.

Q: Tanya Jakusconek from Scotiabank asked to reconcile differences between the previous prefeasibility study and the current feasibility study regarding processing plant size and caving configuration.

A: Natascha Viljoen, President and CEO, explained that the updated study incorporates geotechnical learnings, reoriented Macro Block 1 to avoid fault lines, positioned infrastructure in more competent areas, and increased plant capacity to 15 million tonnes per year from 9 million tonnes per year.

Q: Tanya Jakusconek from Scotiabank asked if there are any changes to the ore body caving standpoint beyond geotechnical updates.

A: Natascha Viljoen, President and CEO, stated that the major change is the orientation of Macro Block 1, and thinking will continue to develop regarding the extended ore body.

Q: Daniel Morgan from Barrenjoey asked if the double-digit IRR for Red Chris is for the first 13 years only and if future caves are included.

A: Natascha Viljoen, President and CEO, confirmed that the economics assume 100% of the capital for a standalone project without factoring in future block benefits initially.

Q: Daniel Morgan from Barrenjoey asked about rights under the joint venture agreement and if Newmont might contemplate investing more than its 70% interest.

A: Natascha Viljoen, President and CEO, stated that Newmont is in discussions with its partner who has full visibility of the project capital.

Q: Daniel Major from UBS asked for an update on expectations for Yanacocha production in 2027 and beyond given stronger-than-guided contributions.

A: Natascha Viljoen, President and CEO, explained that unconstrained asset reviews combined with higher gold prices and optimized heap leach capacity opened up additional open pit opportunities to extend the mine life without material capital investment.

Q: Fahad Tariq from Jefferies asked if the indirect oil price impact sensitivity includes labor cost inflation.

A: Brian Tabolt, CFO, clarified that labor is not included in the $50 million indirect impact, which instead covers chemicals, explosives, grinding media, fixed plant, and contracted services.

Q: Fahad Tariq from Jefferies asked what Newmont is seeing regarding labor cost inflation and availability.

A: Brian Tabolt, CFO, stated that general organization escalation will exceed the 3% 2026 assumption. Natascha Viljoen, President and CEO, added that labor turnover remains under good control with no major shortages despite industry-wide demand for technical talent.

Q: Richard Garchitorena from Barclays asked how the Tanami Q2 completion expected next year will impact cash costs and benefit 2027 and 2028.

A: Natascha Viljoen, President and CEO, stated that commercial production will immediately open up underground areas and positively impact productivity, with a return to previous performance levels expected into 2028. Brian Tabolt, CFO, added that site-level cost guidance is not currently provided.

Q: Hugo Nicolaci from Goldman Sachs asked about potential water availability risks from El Nino at Lihir next year and mitigation strategies.

A: Natascha Viljoen, President and CEO, stated that community water distribution remains the top priority, mining and stockpiling will continue if shortages occur, and plant reliability improvements provide catch-up capacity.

Q: Hugo Nicolaci from Goldman Sachs asked about portfolio flexibility to support returning to the 6 million-ounce target and Cadia catch-up timing.

A: Natascha Viljoen, President and CEO, noted that PC1-2 and PC2-3 are back on schedule, higher-grade areas at Lihir, Boddington, and Tanami are ramping up, and portfolio diversity helps offset localized headwinds.

Q: Lawson Winder from Bank of America asked what gold price assumption is appropriate for year-end 2026, how Lihir and Cerro Negro extensions play in, and if reserves will be replaced.

A: Brian Tabolt, CFO, stated that Newmont anchors on a 3-year trailing average while considering volatility, which will result in an increase in reserve and resource numbers. Natascha Viljoen, President and CEO, added that near-term gold prices are used for quick-turnaround low-capital opportunities like Cerro Negro and Yanacocha, and Cadia reserves will not be impacted by recent incidents.

Q: Adam Baker from Macquarie asked how discussions with Barrick regarding the $1.95 billion 4 mile acquisition came about and how the price was determined.

A: Natascha Viljoen, President and CEO, explained that the agreement includes the 4 mile, fiber line, and my properties, modernized governance, and an unencumbered district approach to optimize performance.

Q: Anita Soni from CIBC World Markets asked if the transaction with Barrick for 4 mile has been completed within the 30-day window.

A: Brian Tabolt, CFO, clarified that the vend-in process has not yet occurred, but closing is anticipated during the fourth quarter with payment due 30 days after completion.

Q: Martin Pradier from Veritas Investment Research asked if fourth-quarter depreciation of around $950 million implied by full-year guidance is realistic and inquired about remediation spending.

A: Brian Tabolt, CFO, explained that higher fourth-quarter production will naturally bring higher depreciation, though Newmont may trend toward the lower end of the guidance range. He added that remediation variance included a one-off liability booking for the midnight mine operation in Washington.

Q: Anita Soni from CIBC World Markets asked about the ramp-up trajectory at Ahafo North for the fourth quarter and into next year.

A: Natascha Viljoen, President and CEO, stated that continuous increases will be seen as operations move into higher-grade areas next quarter.