Newmont(US:NEM) 智通财经网·2025-08-27 11:48Core Viewpoint - After acquiring Newcrest Mining Ltd. for $15 billion in 2023, Newmont Corporation is exploring cost-cutting measures that may lead to significant layoffs due to rising operational costs [1][3]. Group 1: Acquisition and Expansion - The acquisition increased Newmont's gold mines to approximately 20 and expanded its copper operations, but it also resulted in sharply rising costs [1]. - Newmont's all-in sustaining costs for gold reached a historical high by early 2025, significantly eroding record profits from soaring gold prices [1]. Group 2: Cost-Cutting Measures - Newmont has requested management to control costs at the lowest industry levels, aiming to reduce the cost per ounce of gold by about $300, which represents a 20% decrease [1][3]. - Although specific layoff numbers are not disclosed, sources indicate that thousands of employees may be affected as part of the cost-cutting strategy [3]. - The company has initiated a cost and productivity enhancement plan, with organizational restructuring being one of several measures to reduce operational costs [3]. Group 3: Financial Performance and Market Context - The surge in gold prices, reaching a peak of $3,500 per ounce in April, has led to significant gains for large mining companies, with Newmont's stock price increasing by 95% this year [3]. - Over the past five years, Newmont's all-in sustaining costs have risen by over 50% due to increases in energy, labor, and raw material prices, with its second-quarter costs being nearly 25% higher than those of lower-cost producers like Agnico Eagle Mines [3]. - Despite stating that costs are within expected ranges for the year, an increase is anticipated in the second half [3]. Group 4: Challenges Post-Acquisition - The current cost challenges faced by Newmont are primarily attributed to the acquisition of Newcrest, with specific mines like Lihir in Papua New Guinea and Cadia in Australia struggling with cost control [4]. - Analysts note that Newcrest's assets are in difficult phases of their lifecycle, requiring substantial maintenance capital expenditures to catch up on long-term capacity due to previous underinvestment [4].