Key Moments
- Newmont stock is down 2.5% in pre-market trading despite beating Q3 2026 earnings and revenue expectations.
- The miner raised its full-year cost guidance and outlined $4.2 billion to $4.8 billion in development spending for the Red Chris Block Cave project.
- A recent downgrade by Freedom Broker and about $13.2 million in insider share sales over the past year are weighing on sentiment.
Market Reaction and Earnings Overview
Newmont shares are under pressure in pre-open trading, falling 2.5% after the company reported quarterly results that surpassed analyst expectations but came with a more cautious cost outlook and a sizeable new capital plan.
For Q3 2026, Newmont posted adjusted EPS of $2.20, ahead of analyst consensus of around $1.95. Revenue came in at $6.36 billion, exceeding estimates of roughly $6.24 billion. Despite these better-than-expected headline numbers, investors are focusing on the updated cost profile and long-dated spending commitments.
Rising Costs and Red Chris Block Cave Investment
Alongside its results, Newmont raised its full-year cost guidance, tempering enthusiasm around the earnings beat. At the same time, the company announced plans for the Red Chris Block Cave project in British Columbia, a major new development with substantial capital requirements.
The Red Chris Block Cave project carries estimated development costs between $4.2 billion and $4.8 billion and is targeting commercial production by 2033. Newmont also indicated that its 2027 development capital guidance is expected to increase by approximately $500 million as a result of this initiative.
| Key Financial and Project Metrics | Figure |
|---|---|
| Q3 2026 adjusted EPS | $2.20 |
| Analyst EPS consensus | ~$1.95 |
| Q3 2026 revenue | $6.36 billion |
| Revenue estimate | ~$6.24 billion |
| Red Chris Block Cave development cost range | $4.2 billion – $4.8 billion |
| Expected increase in 2027 development capital | ~$500 million |
| 52-week high share price | $135.29 |
Analyst Downgrade Adds to Pressure
The pre-market weakness follows a notable analyst move in the prior session. Freedom Broker downgraded Newmont to Hold from Buy and reduced its price target to $116 from $130. The firm argued that, among major gold producers, Newmont offers the least attractive balance of earnings growth potential and operational risk.
Freedom Broker highlighted cost inflation across Newmont’s Australian asset base and execution risks at the Lihir and Cadia mines as key challenges for the company’s 2027 EBITDA outlook.
This downgrade formed part of a wider reassessment across North American gold miners, with Agnico Eagle and Barrick also seeing cuts on the same day. The broader set of actions pointed to increasing caution around cost trends across the sector.
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