Newmont Corporation: 2Q26: FY26 on-track & cash returns sustaining

研报英文原文证据摘录

Newmont Corporation: 2Q26: FY26 on-track & cash returns sustaining

pronounced 2H weighting (sustaining 42:58 & development 37:63). Key drivers of

higher 2H capex will be at Cadia due to the resumption of full development of

PC1-2, tailings spend at Cadia, Boddington & Tanami and summer development

spend in British Colombia at Red Chris & Brucejack.

Constructive discussion with Barrick on 'notice of default' at NGM

Key drivers of both NEM's & Barrick's (B) investment cases from here include: weak

historical performance improving vs guidance at NGM JV (operated by Barrick),

differences between the two JV partners including Fourmile vend-in, M&A; and, as

reported by Reuters, NEM's approval being required for B to proceed with a proposed

North American IPO (LINK). With 4Q25 results, NEM sent B a 'notice of default' relating

to "mismanagement" of the NGM JV and use of JV resources to develop B's 100%

owned Fourmile property. The notice triggered an engagement period and if a

settlement cannot be reached within this timeline, NEM could pursue legal action. At 2Q

results NEM did not answer specific questions on the discussions with Barrick, but noted

it remains resolute in protecting the interest of NEM shareholders. While NEM remains

hopeful that constructive discussions and improved engagement can continue, a

number of issues remain unresolved. NEM confirmed that the process is open ended and

there is no specific deadline to trigger legal action.

Growth: Red Chris FID in late 2026 but other projects unlikely before 2030

NEM's capital allocation framework provides flexibility to lift capex & M&A, but the

messaging remains more focused on cash returns. In our view NEM's overall capital

spend is likely to remain comparable to 2026 at ~$3.5bn, but we see modest upside to