Newmont(NEM) - 2025 Q2 - Quarterly Results

Newmont Reports Second Quarter 2025 Results Newmont reports strong Q2 2025 results with record free cash flow, significant gold production, and shareholder returns Q2 2025 Highlights Newmont achieved strong Q2 2025 results with 1.5 million gold ounces produced, record $1.7 billion free cash flow, and a new $3.0 billion share repurchase program Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Attributable Gold Production | 1.5 million ounces | | Free Cash Flow | $1.7 billion (record) | | Net Income | $2.1 billion | | Adjusted Net Income (ANI) | $1.6 billion ($1.43/share) | | Adjusted EBITDA | $3.0 billion | - The Board of Directors authorized an additional $3.0 billion share repurchase program and declared a quarterly dividend of $0.25 per share[1][4] - The company maintained a strong balance sheet with $6.2 billion in cash, $10.2 billion in total liquidity, and a Net Debt to Adjusted EBITDA ratio of 0.1x[4] - Newmont is on track to meet its 2025 guidance and expects to receive over $3.0 billion in after-tax cash proceeds from its divestiture program this year[4] Second Quarter 2025 Production and Financial Summary Q2 2025 gold production decreased 4% to 1.48 million ounces, offset by a 13% higher realized gold price and improved costs, leading to $2.1 billion net income and $1.7 billion free cash flow Q2 2025 vs Q1 2025 Performance | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Attributable Gold Production (Moz) | 1.48 | 1.54 | -4% | | Average Realized Gold Price ($/oz) | $3,320 | $2,944 | +13% | | Gold Co-Product CAS ($/oz) | $1,215 | $1,227 | -1% | | Gold Co-Product AISC ($/oz) | $1,593 | $1,651 | -4% | | Net Income ($M) | $2,061 | $1,891 | +9% | | Free Cash Flow ($M) | $1,710 | $1,205 | +42% | - The decrease in gold production was expected and driven by the closing of non-core asset sales, partially offset by increased production at Yanacocha, Peñasquito, Nevada Gold Mines, and Boddington[6] - The decrease in AISC per ounce was primarily due to $81 million lower sustaining capital spend across the portfolio, particularly at Boddington, Lihir, and Cadia[7] Non-Managed Joint Venture and Equity Method Investments Non-managed assets showed mixed Q2 2025 results, with NGM production up 11% to 239 thousand ounces and Pueblo Viejo up 29% to 63 thousand ounces, while Fruta del Norte declined 12% Q2 2025 Attributable Gold Production from Key Investments | Investment | Q2 2025 Production (koz) | Change from Q1 2025 | | :--- | :--- | :--- | | Nevada Gold Mines (NGM) | 239 | +11% | | Pueblo Viejo (PV) | 63 | +29% | | Fruta del Norte (lagged) | 38 | -12% | - Cash distributions received in Q2 totaled $40 million from Pueblo Viejo and $66 million from Fruta del Norte[11][12] 2025 Outlook and Guidance Newmont reaffirms its full-year 2025 guidance, projecting 5.9 million attributable gold ounces and outlining production and capital seasonality Full-Year 2025 Guidance Newmont reaffirms 2025 guidance, targeting 5.9 million attributable gold ounces and a Core Portfolio AISC of $1,620 per ounce, with $1.33 billion in development capital 2025 Full-Year Guidance Highlights | Guidance Metric | Total Newmont | Total Core Portfolio | | :--- | :--- | :--- | | Attributable Gold Production (Moz) | 5.9 | 5.6 | | Gold Co-Product CAS ($/oz) | $1,200 | $1,180 | | Gold Co-Product AISC ($/oz) | $1,630 | $1,620 | | Sustaining Capital ($M) | $1,875 | $1,800 | | Development Capital ($M) | $1,330 | $1,300 | Production and Capital Seasonality Newmont's 2025 Core Portfolio production is evenly split, but capital expenditures are H2-weighted, with 57% of sustaining and 51% of development capital planned for the second half 2025 Core Portfolio H1 vs H2 Weighting | Metric | H1 2025E | H2 2025E | | :--- | :--- | :--- | | Attributable Production | 50% | 50% | | Sustaining Capital | 43% | 57% | | Development Capital | 49% | 51% | - Increased production in H2 is expected from Nevada Gold Mines, Yanacocha, and the addition of Ahafo North in Q4, offsetting declines at Cadia and Peñasquito[16] - Sustaining capital spend will increase in H2 due to work at Lihir, Cadia, Red Chris, Brucejack, and Tanami[17] Third Quarter Commentary Q3 Core Portfolio production is expected to align with Q2, but AISC per ounce will be higher than full-year guidance due to increased sustaining capital, impacting free cash flow - Q3 Core Portfolio production is expected to be similar to Q2, with growth at non-operated JVs, Cerro Negro, Brucejack, and Tanami offset by declines at Ahafo South, Lihir, Peñasquito, and Cadia[19] - Q3 AISC per ounce is expected to be slightly higher than full-year guidance due to increased sustaining capital investments[19] - Q3 free cash flow is expected to be lower than Q2 due to higher capital spend, higher cash taxes, and increased reclamation spending at Yanacocha[20] Strategic and Project Updates Newmont provides updates on its divestiture program, having completed all announced non-core asset sales, and details its ongoing reclamation commitments Divestiture Program Update Newmont completed all announced non-core asset sales, receiving $2.5 billion in net cash proceeds year-to-date, including $470 million from equity stake divestitures - Total gross proceeds from announced transactions are expected to be up to $4.3 billion, including contingent payments[23] - Year-to-date, $2.5 billion in net cash proceeds have been received from asset sales, including ~$850 million in Q2 from Porcupine and Akyem[23] Projects and Reclamation Update Newmont spent $280 million on reclamation in H1 2025, including $167 million for Yanacocha water treatment plants, and remains on track for its $800 million full-year target - The company spent $280 million on reclamation in H1 2025 and remains on track for its full-year target of $800 million[25] - Of the full-year reclamation budget, $600 million is allocated to the Yanacocha water treatment plants[25] Financial Statements Newmont's Q2 2025 financial statements reflect strong sales, increased net income, a robust balance sheet, and significant cash flow generation Condensed Consolidated Statements of Operations Q2 2025 sales rose to $5.32 billion, driving net income attributable to stockholders to $2.06 billion or $1.85 per diluted share, significantly up from Q2 2024, aided by a $699 million asset sale gain Q2 2025 Income Statement Highlights (in millions) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $5,317 | $4,402 | | Costs applicable to sales | $2,001 | $2,156 | | (Gain) loss on sale of assets held for sale | $(699) | $246 | | Net income attributable to Newmont stockholders | $2,061 | $853 | Condensed Consolidated Balance Sheets As of June 30, 2025, Newmont's balance sheet shows $55.17 billion in total assets, $6.19 billion cash, and reduced total debt of $7.13 billion, reflecting strong liquidity Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $6,185 | $3,619 | | Total assets | $55,165 | $56,349 | | Total debt | $7,132 | $8,476 | | Total liabilities | $22,878 | $26,240 | | Total equity | $32,287 | $30,109 | Condensed Consolidated Statements of Cash Flows Q2 2025 saw $2.38 billion net cash from operations, $679 million from investing activities (driven by $991 million asset sales), and $1.75 billion used in financing for repurchases and dividends Q2 2025 Cash Flow Summary (in millions) | Activity | Q2 2025 | | :--- | :--- | | Net cash from operating activities | $2,384 | | Net cash from investing activities | $679 | | Net cash used in financing activities | $(1,745) | | Net change in cash | $1,488 | Non-GAAP Financial Measures Newmont presents key non-GAAP financial measures including Adjusted Net Income, Adjusted EBITDA, Free Cash Flow, and All-In Sustaining Costs for Q2 2025 Adjusted Net Income (ANI) Q2 2025 Adjusted Net Income (ANI) was $1.6 billion or $1.43 per diluted share, adjusted from GAAP Net Income by excluding a $699 million asset sale gain and other items Q2 2025 Net Income to Adjusted Net Income Reconciliation (in millions) | Description | Amount | | :--- | :--- | | Net income attributable to Newmont stockholders | $2,061 | | (Gain) on sale of assets held for sale | $(699) | | Change in fair value of investments | $(151) | | Tax effect of adjustments | $173 | | Valuation allowance and other tax adjustments | $167 | | Other adjustments | $43 | | Adjusted net income (loss) | $1,594 | Adjusted EBITDA Q2 2025 Adjusted EBITDA increased to $3.0 billion from $2.0 billion in Q2 2024, primarily by adjusting GAAP Net Income for taxes, depreciation, interest, and asset sale gains Q2 2025 Net Income to Adjusted EBITDA Reconciliation (in millions) | Description | Amount | | :--- | :--- | | Net income attributable to Newmont stockholders | $2,061 | | Add: Income tax expense | $1,092 | | Add: Depreciation and amortization | $620 | | Add: Interest expense, net | $65 | | Other adjustments | $(37) | | EBITDA | $3,803 | | (Gain) on assets held for sale | $(699) | | Change in fair value of investments | $(151) | | Other adjustments | $44 | | Adjusted EBITDA | $2,997 | Free Cash Flow (FCF) Newmont achieved a record $1.71 billion in Free Cash Flow for Q2 2025, derived from $2.38 billion net cash from operations less $674 million in capital expenditures Q2 2025 Free Cash Flow Calculation (in millions) | Description | Amount | | :--- | :--- | | Net cash provided by operating activities of continuing operations | $2,384 | | Less: Additions to property, plant and mine development | $(674) | | Free cash flow | $1,710 | All-In Sustaining Costs (AISC) Q2 2025 consolidated All-In Sustaining Cost (AISC) was $1,593 per gold ounce (co-product) and $1,375 per gold ounce (by-product), with 2025 Core Portfolio guidance at $1,620 per ounce Q2 2025 All-In Sustaining Costs (per ounce) | Metric | Value | | :--- | :--- | | Total Gold Co-product AISC | $1,593 | | Total Gold By-product AISC | $1,375 |