Newmont Corp. (NEM): 3Q26: Cost outperformance highlights portfolio optionality and recent operational excellence; Buy

Despite a challenging industry-wide operating environment, compounded by CY26 bushfires/earthquakes at key assets, NEM remains on track for production guidance after another solid result. 3Q26 attributable gold production was ~1.30Moz (in-line), with by-product AISC of ~US$1,450/oz better on both lower absolute costs and stronger by-products. Adjusted EBITDA of ~US$3.95bn was ahead of expectations, up 5% QoQ/19% YoY at improved margins of ~62%, while adjusted NPAT of ~US$2.31bn was also ahead. NEM ended 3Q with reported net cash of ~US$3.2bn and liquidity of ~US$12.8bn. Management reiterated CY26 attributable gold production of ~5.26Moz and improved AISC guidance to US$1,520/oz, with CY27 production growth of ~3-5%. Our NEM/NEM.AX NAV and 12m PT are up ~1% (new 12m PT of US$119.70/sh and A$170.30/sh), where we remain Buy rated, trading at ~0.95x NAV with near-term FCF yields of ~5-10%.