Newmont(US:NEM)2025-04-23 20:06Financial 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].