Newmont Corp., the world’s largest gold producer, is beginning to see tangible results from its recent cost-cutting initiatives, posting stronger-than-expected third-quarter earnings that exceeded analyst forecasts.
After a period of record-high mining costs earlier this year, the Denver-based miner managed to bring down expenses slightly in the latest quarter, marking early progress in its ongoing operational streamlining. The improvement follows a series of restructuring efforts under outgoing CEO Tom Palmer, who is preparing to step down after overseeing the company’s $15 billion acquisition of Newcrest Mining Ltd. — a deal that expanded Newmont’s portfolio to around 20 mines and deepened its exposure to copper production.
Much of the company’s turnaround stems from labor reductions and organizational simplification, measures that are helping align Newmont with lower-cost competitors. “Lower general and administrative expenses are the direct result of our deliberate efforts to simplify the organization and drive down labor and contractor costs,” said Natascha Viljoen, who will assume the CEO role in January. “Our exploration and advanced project guidance also reflect ongoing optimization work.”
Newmont’s all-in sustaining costs (AISC) — a key benchmark for gold miners — had climbed more than 50% over the past five years, driven by rising energy, labor, and material prices. The latest quarter saw AISC fall to $1,566 per ounce, about 5.6% below analyst estimates and 2.8% lower year-on-year. While still high relative to peers, the decline marks a step toward restoring cost competitiveness.
The cost improvement, combined with strong gold prices, helped the company deliver adjusted earnings 29 cents per share above consensus estimates. However, Newmont’s stock slipped 6.5% in premarket trading on Friday, as gold prices headed for their third consecutive weekly decline. The miner also flagged a modest production dip next year, attributed to planned mine sequencing at key operations.
Newmont expects to realize the full benefit of its efficiency program in 2026, with official guidance due in February. Still, executives cautioned that some savings could be offset by higher royalty and profit-sharing costs linked to elevated gold prices.
Viljoen reaffirmed that the company’s strategy remains focused on capital discipline and shareholder returns, rather than new acquisitions. “Our priority is to optimize existing assets and reward investors through share buybacks,” she told analysts.
While inflationary pressures on labor and consumables persist across the mining industry, Newmont’s latest results signal a meaningful step toward cost stabilization and improved profitability — positioning the company to capitalize on favorable gold market conditions in the year ahead.
