Newmont(US:NEM)2026-02-19 23:30Financial Data and Key Metrics Changes - In Q4 2025, the company achieved record earnings and free cash flow, generating $2.8 billion in free cash flow for the quarter and $7.3 billion for the full year [7] - The company returned $3.4 billion to shareholders through dividends and share repurchases [7] - The quarterly common dividend was increased by 4%, reflecting a commitment to enhance shareholder returns [5] Business Line Data and Key Metrics Changes - The company produced 5.7 million ounces of gold, 28 million ounces of silver, and 135,000 tons of copper from its core portfolio in 2025 [6] - General and administrative (G&A) costs were improved by $100 million, equating to a 21% improvement for 2026 [7] Market Data and Key Metrics Changes - The gold reserve base stands at 180 million ounces, with an additional 149 million ounces of gold resource, representing approximately 40 years of production life [10] - The reserve price assumption for 2025 was increased from $1,700 per ounce to $2,000 per ounce, remaining conservative compared to market averages [11] Company Strategy and Development Direction - The company is focused on safety, efficiency, operational consistency, and enhancing shareholder returns through a disciplined capital allocation framework [4][5] - The strategy includes advancing value-accretive growth options, such as mine life extension programs and feasibility studies for new projects [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a volatile macroeconomic environment while maintaining a disciplined approach to investment [36] - The company anticipates a production trough in 2026 due to planned mine sequencing, with a return to growth expected in 2027 [23] Other Important Information - An investigation is underway following a tragic incident at the Tanami operation, emphasizing the company's commitment to safety [6] - The company is actively pursuing exploration opportunities, particularly at Brucejack and Ahafo South, which are expected to yield significant new reserves [15][16] Q&A Session Summary Question: CapEx and potential upside through Red Chris and Merian - Management confirmed that they are on track to provide more details on the Red Chris project in the second half of the year and emphasized disciplined capital allocation [40][42] Question: Long-term growth targets of 6 million ounces - Management indicated that they will provide better guidance on the long-term growth profile towards the end of the year [48] Question: M&A views in the current gold price environment - Management stated they are satisfied with their current portfolio and will evaluate any value-accretive opportunities in a disciplined manner [50] Question: Capital allocation and buyback commitments - Management confirmed that excess cash would be returned to shareholders through buybacks, with a disciplined approach to maintaining a resilient balance sheet [53][54] Question: Tanami expansion costs and timeline - Management assured that they are on track to meet the projected costs for the Tanami expansion project [77] Question: Debottlenecking and brownfield expansion opportunities - Management acknowledged the importance of evaluating short-term opportunities with low capital investment and highlighted several potential projects for expansion [88][90]