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 enhance 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 company achieved commercial production at Ahafo North, contributing over 300,000 ounces of gold production in 2025 [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 - Newmont's strategy focuses on safety, efficiency, operational consistency, and enhancing shareholder returns through predictable capital returns [4][5] - The company is advancing a mine life extension program at Lihir and completing a feasibility study for the Red Chris block cave [11] - The capital allocation framework prioritizes sustaining capital and dividends, with excess cash allocated to 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 disciplined investment and long-term value creation [38] - The company anticipates a production trough in 2026 due to planned mine sequencing, with a return to 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] - Newmont's exploration program is focused on near-mine and brownfields opportunities, with promising results at Brucejack and Ahafo South [16][18] Q&A Session Summary Question: CapEx and potential upside through Red Chris and Merian - Management confirmed that capital guidance remains at $1.1 billion for sustaining capital and $1.3 billion for development capital, with updates on Red Chris expected later in the year [41][43] Question: Long-term growth targets of six million ounces - Management indicated that better guidance on achieving the six million ounces target will be provided towards the end of the year [49] Question: M&A views and current gold price environment - Management expressed satisfaction with the current asset portfolio and emphasized a disciplined approach to evaluating potential M&A opportunities [51] 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 [54][55] Question: Nevada Gold Mines performance and maximizing shareholder value - Management highlighted ongoing discussions with JV partners to improve performance and maximize shareholder value [60][61] 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 $100 per ounce reduction in costs [72][74]