About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Core Insights - Newmont Corporation reported $5.01 billion in revenue for Q1 2025, a year-over-year increase of 24.5% and a surprise of +12.22% over the Zacks Consensus Estimate of $4.46 billion [1] - The EPS for the same period was $1.25, compared to $0.55 a year ago, resulting in an EPS surprise of +48.81% against the consensus estimate of $0.84 [1] Financial Performance Metrics - Newmont's shares returned +14.7% over the past month, outperforming the Zacks S&P 500 composite, which declined by -6.6% [3] - The company holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3] Production and Cost Metrics - Attributable Gold ounces sold for Ahafo were 199 Koz, exceeding the average estimate of 137.86 Koz [4] - Average Realized Price for Zinc was $1.13 per pound, slightly below the average estimate of $1.17 per pound [4] - AISC Consolidated for Nevada Gold Mines was $1789 per ounce, higher than the average estimate of $1518.2 per ounce [4] - AISC Consolidated for Peñasquito was $1091 per ounce, compared to the average estimate of $1174.5 per ounce [4] - Attributable Gold ounces sold for Yanacocha were 113 Koz, above the average estimate of 102.64 Koz [4] - Attributable Gold ounces sold for Boddington were 135 Koz, slightly below the average estimate of 137.28 Koz [4] - Attributable Gold ounces sold for Tanami were 75 Koz, below the average estimate of 79.83 Koz [4] - AISC Consolidated for Merian was $1864 per ounce, higher than the average estimate of $1775.8 per ounce [4] - AISC Consolidated for Tanami was $1659 per ounce, slightly above the average estimate of $1627.2 per ounce [4] - AISC Consolidated for Cerro Negro was $2857 per ounce, significantly higher than the average estimate of $1246.1 per ounce [4] - Attributable Gold ounces sold for Cerro Negro were 38 Koz, below the average estimate of 71.34 Koz [4] - AISC Consolidated for Yanacocha was $1170 per ounce, above the average estimate of $1051.2 per ounce [4]

Financial Performance - Net income from continuing operations attributable to Newmont stockholders was $1,891 or $1.68 per diluted share, an increase of $1,725 from the prior-year quarter[14]. - Adjusted net income was reported at $1,404 or $1.25 per diluted share, an increase of $0.70 per diluted share from the prior-year quarter[14]. - Adjusted EBITDA reached $2,629, reflecting a 55% increase from the prior-year quarter[14]. - Net cash provided by operating activities was $2,031, a 162% increase from the prior year, with free cash flow of $1,205[14]. - Cash dividends declared per common share remained steady at $0.25 for the period ended March 31[14]. Production and Sales - Consolidated gold ounces produced were 1,460 thousand, while sold ounces were 1,442 thousand, showing a decrease from 1,619 thousand produced and 1,599 thousand sold in the prior year[10]. - Average realized gold price per ounce increased to $2,944 from $2,090 in the prior year, representing a significant rise[10]. - Attributable production included 1.5 million ounces of gold and 348 thousand attributable gold equivalent ounces from co-products[14]. Liquidity and Cash Position - The company ended the quarter with $4.7 billion in consolidated cash and $8.8 billion in total liquidity[14]. - The company completed the sale of the CC&V, Musselwhite, and Éléonore reportable segments for total proceeds of $1,860 million[14]. Market and Currency Risks - As of March 31, 2025, the short-term gold price assumption is $2,860 per ounce, while the long-term assumption is $1,900 per ounce[293]. - A hypothetical 10% adverse movement in local currency exchange rates would result in an approximate $76 increase to costs applicable to sales per ounce for the three months ended March 31, 2025[297]. - The average provisional price for gold sales is $3,127 million, with a potential effect of a 10% change resulting in a $61 million impact[300]. - The company has significant operations in multiple countries, including Canada, Mexico, and Australia, which exposes it to foreign currency exchange rate fluctuations[295]. - The fair value of the Cadia Power Purchase Agreement cash flow hedge could decrease by approximately $37 due to a hypothetical 10% adverse movement in forward electricity rates[304]. - The foreign currency cash flow hedges could see a decrease in fair value of approximately $211 from a hypothetical 10% adverse movement in AUD and CAD exchange rates[304]. Credit and Interest Rate Risks - The company’s fixed rate debt does not expose it significantly to interest rate risk, but there is fair value risk if long-term debt is repurchased or exchanged prior to maturity[294]. - The company mitigates credit risk by entering into derivatives with high credit quality counterparties and monitoring their financial conditions[306]. - Market liquidity risk is managed by spreading out the maturity of derivatives over time and ensuring counterparties cannot require immediate settlement except under specific default conditions[307].

Core Viewpoint - Newmont Corporation reported strong quarterly earnings of $1.25 per share, significantly exceeding the Zacks Consensus Estimate of $0.84 per share, and showing a year-over-year increase from $0.55 per share [1][2] Group 1: Earnings Performance - The earnings surprise for the recent quarter was 48.81%, following a previous surprise of 47.37% when earnings were $1.40 per share against an expectation of $0.95 [1][2] - Over the last four quarters, Newmont has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - Newmont's revenues for the quarter ended March 2025 were $5.01 billion, exceeding the Zacks Consensus Estimate by 12.22%, and up from $4.02 billion a year ago [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] Group 3: Stock Performance - Newmont shares have increased approximately 46.5% since the beginning of the year, contrasting with a decline of -10.1% in the S&P 500 [3] Group 4: Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.85 on revenues of $4.18 billion, and for the current fiscal year, it is $3.71 on revenues of $18.34 billion [7] Group 5: Industry Context - The Mining - Gold industry, to which Newmont belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8]

First Quarter 2025 Results APRIL 23, 2025 FIRST QUARTER 2025 RESULTS NEWMONT CORPORATION 1 Cautionary Statement Regarding Forward Looking Statements, Including Guidance Assumptions, and Notes Q1 2025 Highlights Remain on Track to Deliver on Full-Year Commitments Strengthened SAFETY CULTURE Increased focus on visible leadership in the field This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exc ...

Group 1: Market Performance - Shares of gold mining stocks such as Barrick Gold, Newmont Mining, Gold Fields, and AngloGold Ashanti experienced declines of 4.6%, 2.6%, 6%, and 5.1% respectively, despite broader market indexes being up [1] - The price of gold fell by 3.4% on the same day, contributing to the decline in gold mining stocks [1] Group 2: Gold Price Trends - Gold has surged 42% over the past year, often seen as a "safe haven" asset amid geopolitical uncertainties and inflation concerns [3] - The price of gold typically rises when the value of the dollar declines, as it is priced in dollars [3] Group 3: Political Influence on Gold and Markets - The Trump administration's tariff policies have created instability, leading to increased global uncertainty and a decline in the dollar's value [2][4] - Recent comments from President Trump indicating a potential easing of tariffs have led to a market rally and a corresponding drop in gold prices [5][6] Group 4: Company Strategies - Barrick Gold is actively looking to divest from certain gold mining operations, including a recent sale of its stake in an Alaska project and potential sales of its Canadian and Ivory Coast operations [8] - The actions of Barrick Gold may suggest a belief that gold prices have peaked, although future market conditions remain uncertain [9] Group 5: Investment Insights - Gold and gold-oriented stocks can serve as a hedge against economically sensitive holdings, making them valuable in a diversified portfolio [10]

Financial Performance - Newmont reported a net income of $1.9 billion, or $1.68 per diluted share, for Q1 2025, an increase of $488 million from the prior quarter[8]. - Adjusted net income for the quarter was $1.4 billion, or $1.25 per diluted share, compared to $1.6 billion, or $1.40 per diluted share, in the prior quarter[9]. - The company reported a net income attributable to Newmont stockholders for Q1 2025 was $1,891 million, resulting in an adjusted net income of $1,404 million, or $1.25 per diluted share[41]. - Net income for FY 2024 was $3,381 million, with Q4 contributing $1,421 million[37]. - Net income attributable to Newmont stockholders for FY 2024 was $3.348 billion, with Q4 net income at $1.403 billion, reflecting strong financial performance[32]. Cash Flow and Liquidity - The company generated a record first quarter free cash flow of $1.2 billion, a decrease of 26% from the previous quarter[11]. - The company maintained a strong balance sheet, ending the quarter with $4.7 billion in cash and $8.8 billion in total liquidity, with a net debt to adjusted EBITDA ratio of 0.3x[11]. - Cash from operations before working capital for FY 2024 was $7,343 million, with Q4 at $2,398 million[37]. - Net cash provided by operating activities for FY 2024 was $6,363 million, with Q4 at $2,511 million[37]. - As of March 31, 2025, the company's net debt decreased to $3.221 billion from $5.308 billion at December 31, 2024, reflecting a reduction of approximately 39.4%[50]. Production and Sales - Attributable gold production was 1.5 million ounces, primarily from the Tier 1 Portfolio, with an average realized gold price of $2,944 per ounce, up $301 from the prior quarter[7]. - Attributable gold ounces sold in Q1 2025 were 1,581, with a total of 6,471 ounces sold year-to-date[28]. - Gold sold in Q1 2025 was 1,442 thousand ounces, down from 1,599 thousand ounces in Q1 2024, indicating a decrease of 9.8%[53]. - Total gold sales for the first quarter of 2025 reached 1,690 thousand ounces, with an all-in sustaining cost (AISC) of $1,439 per ounce[57]. - The company expects to sell approximately 5,175 thousand ounces of gold in 2025, with projected AISC of $1,620 per ounce[61]. Costs and Expenses - Gold costs applicable to sales (CAS) per ounce increased 12% to $1,227 compared to the prior quarter, while all-in sustaining costs (AISC) per ounce rose 13% to $1,651[8]. - The costs applicable to sales per ounce of gold sold increased to $1,227 in Q1 2025 from $1,057 in Q1 2024, representing a rise of 16.1%[53]. - The total all-in sustaining costs per ounce for gold in Q1 2025 was $1,651, compared to $1,442 in Q1 2024, marking an increase of 14.5%[56]. - Total costs applicable to sales for gold in Q1 2025 were $1.769 billion, compared to $1.690 billion in Q1 2024, reflecting an increase of 4.7%[53]. - The company reported a total gold by-product AISC of $1,319 per ounce in Q1 2025, a decrease of 4.5% from the previous quarter[29]. Divestitures and Investments - Newmont completed its divestiture program, generating over $2.5 billion in cash proceeds net of tax impacts in 2025, with total gross proceeds expected to reach up to $4.3 billion[5]. - The company has completed the divestment of all non-core operations and its 70% interest in the Havieron project[23]. - Newmont plans to spend $800 million on reclamation activities in 2025, with $600 million allocated specifically for water treatment plants at Yanacocha[26]. - The sale of the Akyem operation is expected to generate up to $1.0 billion, while the Porcupine operation sale could yield up to $425 million, both closed on April 15, 2025[27]. - The company is focusing on divestiture programs for non-core assets, including Telfer and CC&V, which have been closed prior to March 31, 2025[29]. Future Outlook and Guidance - Newmont remains on track to meet its 2025 guidance, targeting total attributable gold production of 5.9 million ounces[15]. - 2025 guidance assumes gold prices at $2,500/oz, copper at $9,370/tonne, and silver at $30/oz, with an estimated consolidated adjusted effective tax rate of 34%[21]. - The company anticipates continued growth in production and pricing for gold and copper in the upcoming quarters[28]. - The company expects to sell approximately 5,175 thousand ounces of gold in 2025, with projected AISC of $1,620 per ounce[61]. - Advanced projects and exploration costs for 2025 are projected to be $200 million, indicating ongoing investment in future growth[61]. Shareholder Returns - The company delivered $1.0 billion in total returns to shareholders through share repurchases and dividends since the start of the year[5]. - The share repurchase program is authorized for up to $2.0 billion over 24 months, subject to market conditions and other factors[80]. - Future dividends beyond June 20, 2025, have not yet been declared, and their payment will depend on financial results and market conditions[79]. Sustainability and Corporate Responsibility - Newmont's global Closure Strategy aims to create sustainable legacies post-mining, with $95 million spent on reclamation activities in Q1 2025[26]. - The company is committed to sustainable and responsible mining practices, aiming to create value and improve lives[75].

Core Viewpoint - Newmont Corporation (NEM) is expected to report strong first-quarter 2025 results, benefiting from higher gold prices despite facing cost challenges [1][7]. Financial Performance - The Zacks Consensus Estimate for first-quarter earnings is 84 cents per share, reflecting a 52.7% year-over-year increase [2]. - First-quarter revenues are estimated at $4.54 billion, indicating a roughly 13% increase from the previous year [2]. - NEM has a trailing four-quarter earnings surprise of 34.5% on average, having beaten the Zacks Consensus Estimate in three of the last four quarters [5]. Gold Price Impact - Gold prices have surged nearly 19% in the first quarter and are up approximately 26% year-to-date, driven by safe-haven demand amid global economic uncertainties [8]. - The average realized price of gold for NEM is estimated at $2,759 per ounce, representing a 32% year-over-year rise [9]. Production and Costs - NEM's consolidated attributable gold production is estimated at roughly 1.54 million ounces for the quarter [9]. - The company anticipates higher unit costs in the first quarter, with all-in sustaining costs (AISC) estimated at $1,691 per ounce, a 17.5% year-over-year increase [10]. Stock Performance and Valuation - NEM's shares have increased by 47% over the past year, underperforming the Zacks Mining – Gold industry's 58.3% rise but outperforming the S&P 500's 5.8% increase [11]. - The stock is currently trading at a forward 12-month earnings multiple of 14.14X, which is about 16.1% lower than the peer group average of 16.85X [14]. Growth Potential - Newmont is positioned for growth with a robust project portfolio that is expected to expand production capacity and extend mine life [16]. - The acquisition of Newcrest Mining Limited is anticipated to create significant value and synergies for shareholders [16]. - NEM's strong liquidity and cash flow generation capabilities support its growth projects and shareholder value [17]. Investment Outlook - Investing in NEM stock ahead of its earnings announcement is seen as a compelling opportunity due to its strong market position, financial health, and favorable gold market conditions [18].

Group 1 - Newmont Corporation (NEM) has experienced a 31% increase since November 2024 and a 48% year-to-date rise, indicating strong performance amidst macroeconomic uncertainty and weak stock markets [1] - The article highlights the growing interest in the green economy, with a focus on generational investment opportunities [1] Group 2 - The author, Manika, has over 20 years of experience in investment management, stock broking, and investment banking, which adds credibility to the analysis presented [1]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Newmont Corporation due to a class action complaint alleging breaches of fiduciary duties by the board of directors [1][2] Summary by Relevant Sections Class Action Complaint - The complaint was filed on January 31, 2025, covering a Class Period from February 22, 2024, to October 23, 2024 [1] - Allegations include that defendants made false or misleading statements regarding Newmont's revenue outlook and production capabilities, creating a false impression of reliability [2] Investigation Details - The investigation focuses on whether the board of directors failed to fulfill their fiduciary responsibilities to the company [1] - The complaint claims that the defendants provided materially flawed statements of confidence and growth projections that did not consider critical variables [2]