Peter Toth and David Leyva, they have helped shape the company we are today and share accountability for delivering the plans that define our future, executing our strategy, advancing our world-class portfolio and leading with cost and capital discipline. With that, I will turn now to our second quarter highlights. Newmont delivered a strong second quarter and remains on track to achieve a full year 2026 guidance, supported by disciplined execution across the portfolio and continued momentum as we head into the second half of the year. Beginning with our operational performance, in the second quarter, we produced 1.3 million ounces of gold, 17,000 tons of copper and 7 million ounces of silver from the full portfolio. The performance supported $2.9 billion of cash flow from operations after working capital and a second quarter record of $2.2 billion in free cash flow. Since our last earnings call and including share repurchases in July, we have returned approximately $1.9 billion to shareholders through quarterly dividends and ongoing share repurchases. I also want to highlight that we have now repurchased over 100 million shares since we began our share repurchase program a little over two years ago. This is a meaningful milestone that Brian will discuss later in the call. During the quarter, we also achieved several important milestones within our portfolio. First, at Redcris, the Blockhove project received key regulatory approvals from the province of British Columbia. This includes an amended environmental assessment certificate achieved through a consent-based process with the TELTA nation, reflecting the strength of our partnerships and shared commitment to advancing the project responsibly. With these approvals in place, we are focused on completing the feasibility study and advancing the project toward board approval and final investment decisions for this promising new project. We made significant progress on the recovery efforts at CAIDIA following the seismic event that occurred on April 14th. Production from the operating caves resumed in mid-June and the team is working to complete the remaining ground support upgrades. rights. Development rights at PC1-2 have returned to normal levels, and we are working to secure the regulatory approvals required to safely restart CAID establishment at both of the projects CAIDs later in the year. We continue to expect no impact on Newmont's full-year production guidance. Collectively, our second-order results continue to demonstrate the strength of Newmont's portfolio and its ability to convert solid operational performance into significant free cash flow and returns to our shareholders. Turning now to the operational drivers supporting our full year outlook. Our second quarter operational performance was modestly ahead of the expectations we communicated in April, primarily due to certain ounces being realised earlier than expected, driving some third quarter production forward into the second quarter. The most notable drivers were Yanakocha, where ounces were produced earlier than planned, and Lihir, which delivered a stronger quarter as results of the ongoing asset reliability work at this world-class operation. Together, these assets delivered approximately 50,000 ounces of production that was initially expected in the second half of the year. During the quarter, we also benefited from a stable performance from our Nevada Gold Mines joint venture. Taking these results into account, we now expect approximately 49% of full-year production to have been delivered in the first half, with 51% expected in the second half. Looking ahead, we expect third-quarter production for the total portfolio to be broadly in line with the second quarter, before picking up again in the fourth quarter, which is still expected to be our strongest of the year as Lihir completes planned maintenance in the third quarter and a half hour north reaches its full run rate. Shifting now to cost. We remain focused on controlling our absolute cost base to maximize margins and continue supporting strong free cash flow. As we signaled last quarter, higher oil prices contributed to the expected increase in second quarter cost. However, even after absorbing that pressure, both cost applicable to sales and all in sustaining costs remain firmly within our full year guidance ranges, reflecting the continued discipline and cost and productivity initiatives we have been implementing across the portfolio. To make the work that we've been doing more tangible, I want to highlight a few examples. We have parked nearly 50 mining production units across the portfolio without affecting production. At Serenegro, more efficient pre-start activities have increased underground productive time by approximately 15% per shift. At Ahofo North, we have made targeted investments to operationalize and improve milling efficiency. And at Merion, we have improved road conditions and overall wet weather preparedness to optimize existing equipment performance during the rainy seasons. Across the portfolio, we continue to reduce contract utilization where possible. These are practical site-led actions that collectively improve productivity and help offset external cost pressures. Finally, our capital spent for 2026 is on track to land within the guidance ranges that we set at the beginning of the year. Starting with sustaining capital, we now expect spending to be approximately 58% weighted towards the second half of the year, primarily due to the timing of key programs at Boddington and Cadio, ongoing ventilation work at Tanami and seasonal surface construction at Bruce Jack and Red Chris during the warmest summer months in British Columbia. Development capital is now expected to be 63% weighted to the second half, reflecting the timing of work at our key projects in execution, as well as the progression of feasibility study work at Red Chris. At Kaidea, development spending is expected to increase as work recommences at the Panel Cave projects following the April seismic event. At Lihir, mobilisation of the nearshore barrier will ramp up in the third quarter, unlocking access to more than 5 million ounces beginning in 2028. And the second expansion at Tanami continues to progress to plan with all underground infrastructure expected to be completed by the end of the third quarter. With that, I will now turn it over to Brian to review our financial performance and capital allocation priorities. Brian, over to you.
Thank you, Natasha, and hello, everyone. I want to start by expressing how honored I am to step into the CFO role here at Newmont. Since joining the company in 2021 and having worked closely with teams across the business, including the newly appointed and existing members of the executive leadership team, I have developed a deep understanding of our portfolio, financial priorities, and the discipline required to deliver consistent shareholder value, and I look forward to building on that work in my new role. I also want to thank Peter and the broader finance team for the strong foundation and continuity they have provided through this transition. Turning to the second quarter, Newmont delivered strong financial results supported by stable operations, disciplined cost management and continued execution across the portfolio. We generated $3.8 billion of adjusted EBITDA and adjusted net income of $2.10 per share. We realized an average gold price of $4,414 per ounce, generated $2.9 billion of cash flow from operations after working capital, and delivered $2.2 billion of free cash flow. Working capital was a modest use of cash during the quarter, primarily reflecting reclamation spending at Yanacocha, normal course inventory and stockpile builds, and the timing of cash tax payments. This was partly offset by favorable receivable movements at Penasquito and Cadia, where strong collections and lower sales volumes reduced outstanding balances. As we move into the second half of the year, working capital variability may continue, including the potential unwinding of a portion of the receivable benefit recorded in the quarter. During the calendar quarter, we returned approximately $1.8 billion through quarterly dividends and share repurchases, marking the second consecutive quarter in which we returned more than 80% of the free cash flow generated during the period. Importantly, we We achieved this while continuing to fund our organic growth pipeline and maintaining a strong net cash position, further differentiating Newmont from our peers and demonstrating the strength of our business through the commodity and investment cycles. Our second quarter results also demonstrate the significant operating leverage embedded in the portfolio. Year over year, our realized gold price increased by approximately $1,100 per ounce, or about 33%, while absolute costs applicable to sales increased just 4%. As a result, a substantial portion of the higher gold price translated into stronger margins and free cash flow. Turning to costs, gold all-in sustaining costs were $1,621 per ounce on a byproduct basis, remaining well below our full year guidance of $1,680 per ounce. Unit costs increased sequentially quarter over quarter, as expected, primarily reflecting lower gold in silver production and sales volumes, a lower byproduct contribution, and the full quarter impact of higher Ghana royalties and higher diesel prices. Despite these factors, our absolute cost base remains well controlled, and we continue to monitor the geopolitical environment and its potential cost implications, while remaining encouraged by our demonstrated ability to manage costs and improve productivity. As Natasha mentioned, total portfolio production in the third quarter is expected to remain broadly in line with the second quarter, which when coupled with the planned approximate $150 million quarter-over-quarter increase in sustaining capital is expected to result in moderately higher unit costs in the third quarter. We remain focused on managing absolute costs, protecting margins, and maintaining discipline as we work through the higher capital spend expected in the second half of the year. Turning now to our capital allocation priorities. The capital allocation framework introduced earlier this year continues to provide the right balance between reinvesting in our world-class portfolio, maintaining financial flexibility, and returning excess cash to shareholders. Having been closely involved in the development of this framework, our focus remains on executing against it with discipline, consistency, and transparency. Beginning with the sustaining capital, we invested $438 million in the second quarter to support safe production and long-term sustainable cash generation. We remain on track to meet our full-year guidance of $1.95 billion, with spending expected to increase in the second half as we progress critical work that preserves the integrity and longevity of our assets. turning to the dividend in the second quarter we declared a dividend of 26 cents per share unchanged from the prior quarter moving to development capital we invested 285 million dollars during the quarter as natasha discussed earlier full year guidance remains unchanged at 1.4 billion dollars with spending expected to increase in the second half as we advance projects at Kadia, Tanami, and Lahir. We also remain committed to maintaining a strong and flexible balance sheet, ending the quarter with $3.4 billion of net cash, modestly above the upper end of the range of our net cash target of $1 billion, plus or minus $2 billion. That position will naturally fluctuate as we fund our capital programs, pay dividends, and return excess cash to shareholders. In stronger price environments, we would expect our cash position to remain toward the upper end of our net cash range if prices were to decline entering that part of the cycle with additional cash would help us to continue funding our capital program while returning capital to shareholders consistent with our through the cycle approach to creating shareholder value with those priorities funded the framework directs all excess cash to share repurchases since our last earnings call we have repurchased 1.7 billion dollars of shares shares under the $6 billion authorization approved in April. This includes more than $600 million repurchased in July to date, leaving approximately $4.3 billion under the current authorization. Since launching our repurchase program over two years ago, we have reduced our share count by more than 100 million shares, or approximately 9%. Based on the repurchases completed to date, the formula under our framework would support a quarterly dividend of $0.27 per share at the next annual review, $0.01 above the current quarterly dividend, or $0.04 on an annualized basis, while maintaining the same targeted annual cash commitment. This would equate to an 8% increase of the dividend since we introduced the new framework only a few months ago. Any increase would remain subject to approval and declaration by the Board as part of its annual review next February, but we We continue to execute the program consistently, reflecting our confidence in the intrinsic value of Newmont shares and the long-term benefits these repurchases deliver to shareholders. As we look to the remainder of the year, our priorities remain clear. Continue funding sustaining capital to preserve the integrity and longevity of our assets, continuing advancing our highest return development projects, maintain financial flexibility with our net cash target range and return excess cash to shareholders through ongoing share repurchases. With that, I'll turn it back to Natasha for closing remarks.
Thank you, Brian. In closing, our strong first-half performance positions us well to continue delivering on our commitments and creating value for our shareholders. We remain on track to achieve our 2026 guidance, supported by solid execution across the portfolio. Our operations continue to generate significant free cash flow, allowing us to invest in the business, maintain a strong and resilient balance sheet, and return capital to shareholders through our consistent capital allocation framework. As we enter Newmont's next phase of delivery, we do so with a renewed executive leadership team that has deep knowledge of our operations and the jurisdictions in which we operate. These leaders have helped shape the company we are today and they understand our assets, our people and the opportunities ahead and they share the clear accountability for delivering Newmont's future. Their appointments demonstrate the depth of our internal bench strength and provide important continuity in how we execute our strategy. More importantly, the team is fully aligned around the priorities that will drive long-term value. Safe and consistent operational performance and project delivery, rigorous cost and capital discipline and focus investment in the highest return opportunities within our portfolio. Looking ahead we will continue to leverage our industry leading portfolio, deep technical expertise and experienced leadership team to build a stable and resilient future for Newmont. Finally before we open the floor for questions, I would like to make a brief reference to our discussions with Barrick. I want to specifically refer to our notice of default, as well as our overall efforts to protect the rights and value of the Newmont shareholders. We have actively engaged with Barrick over the last few months to find mutually acceptable solutions to our diverging legal, technical and commercial views on the various aspects of the joint ventures management and past performance, the proposed IPO and the potential resulting complexities, and contribution process for all excluded properties with the goal of maximising NGM's performance both in the near and long term. We have remained resolute in protecting the interests and rights of Neumont shareholders throughout this process. While I remain hopeful of reaching a successful near-term resolution, we find ourselves nearing the end of this extensive direct engagement period with several key issues still unresolved. Most importantly, as I mentioned on previous calls, we remain committed to fostering a strong working relationship with Barrick, playing a role to ensure NGM delivers to its full potential and protecting, and if required, enforcing our legal rights enshrined in the JV agreement. You will appreciate that given the ongoing discussions and sensitivities on both sides, I will not be able to answer any specific questions regarding the issue. And with that, we look forward to addressing your questions about Neil Mond's operational and financial performance. Handing over to Neil.
Yeah. All right. Well, Holly, I think we're ready for a Q&A. So I'll turn it over to you to bring up the first question.
Operator
Wonderful. We will now begin the question and answer session. We ask that you please limit inquiries to one question and one follow-up question. If you'd like to ask a question, please press star then one to raise your hand. If you are using a speakerphone, please pick up your hand.
Holly, can I just confirm that you can hear us?
Operator
So we'll assemble. Our first question comes from Richard Garci-Torrena with Barclays. Richard, your line is open.
Great. Thanks. And good afternoon. Can you hear me clearly? Hello?
So, yeah, thanks for taking my question.
And congrats on the regulatory approvals for Red Chris. Just wondering if you could walk us through what are the remaining milestones that we should be expecting as you move towards completing the feasibility study. Obviously, probably some refinements on some of the costs, I guess, given, you know, recent inflation pressures. And then, you know, how should we think about FID later this year in terms of timeline for construction?
Operator
We are currently experiencing technical difficulties. Please hold while we pause.
All right, Holly, can you hear us now okay?