Newmont(US:NEM)2026-02-19 23:32Financial Data and Key Metrics Changes - In Q4 2025, Newmont generated $2.8 billion in free cash flow, contributing to a total of $7.3 billion for the full year, marking record earnings and free cash flow on both a quarterly and annual basis [9] - The company achieved a 4% increase in its quarterly common dividend, reflecting a commitment to enhancing shareholder returns [7] - General and administrative (G&A) costs were improved by $100 million, equating to a 21% improvement for 2026 [9] Business Line Data and Key Metrics Changes - Newmont produced 5.7 million ounces of gold, 28 million ounces of silver, and 135,000 tons of copper from its core portfolio in 2025 [8] - The successful completion of the non-core divestiture program generated $4.5 billion in proceeds, with $3.4 billion returned to shareholders through dividends and share repurchases [9] 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 [12] - The reserve price assumption for 2025 was increased from $1,700 per ounce to $2,000 per ounce, remaining conservative compared to the three-year trailing average [12][13] Company Strategy and Development Direction - The company is focused on safety, efficiency, operational consistency, and enhancing shareholder returns through predictable capital returns [5][4] - Newmont is advancing a mine life extension program at Lihir and completing a feasibility study for the Red Chris block cave [11][21] - The capital allocation framework prioritizes sustaining capital and dividends, followed by development capital and share repurchases [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a volatile macroeconomic environment while focusing on operational delivery and financial resilience [5][39] - The company anticipates a production trough in 2026 due to planned mine sequencing, with a return to production growth expected in 2027 [25][31] Other Important Information - An investigation is underway following a fatal incident at the Tanami operation, emphasizing the company's commitment to safety [8] - The company is actively pursuing exploration opportunities, particularly at Brucejack and Ahafo South, with expectations of adding significant new gold reserves [17][18] Q&A Session Summary Question: CapEx and potential upside through Red Chris and Merian - Management confirmed that capital guidance remains on track, with updates on Red Chris expected in the second half of the year [44] Question: Discussions with Nevada Gold Mines joint venture partner - Management indicated ongoing discussions focused on improving performance at Nevada Gold Mines [46] Question: Long-term growth targets of 6 million ounces - Management stated that better guidance on achieving the long-term growth target will be provided towards the end of the year [50] Question: M&A opportunities in the current gold price environment - Management expressed satisfaction with the current asset portfolio and indicated that any potential changes would be made in a disciplined manner [52] Question: Capital allocation and buyback commitments - Management confirmed that excess cash would be returned to shareholders through buybacks, with a disciplined approach to capital allocation [56] Question: Cost guidance and inflation drivers - Management noted that costs attributable to sales have remained constant year on year, with significant cost savings initiatives contributing to a reduction in all-in sustaining costs [59][74] Question: Maximizing shareholder value at Nevada Gold Mines - Management highlighted the importance of understanding district potential and optimizing plans across the portfolio to maximize shareholder value [61]