Newmont's Net Income Soars 141% in Q2 2025

Newmont Corporation (NEM) reported second quarter 2025 results, with net income soaring by 141% to $2.061 billion, compared to $853 million in the prior quarter. Revenue for the quarter reached $5.317 billion, marking a 21% increase from $4.402 billion in the previous period. The company also reported Adjusted Net Income of $1.594 billion, or $1.43 per diluted share. Newmont's second-quarter performance is aligned with its 2025 guidance, and it has generated an all-time record quarterly free cash flow of $1.7 billion.

Key Financial Drivers

The significant increase in net income was primarily driven by higher revenues and lower Costs Applicable to Sales (CAS), alongside a substantial gain on the sale of assets held for sale, which amounted to $699 million, up from $276 million in the prior quarter. The average realized gold price also saw a notable increase to $3,320 per ounce, an increase of $376 per ounce over the prior quarter. Gold CAS per ounce decreased by 1% to $1,215 per ounce, mainly due to lower direct operating costs following the divestment of higher-cost, non-core assets. Gold All-In Sustaining Costs (AISC) per ounce decreased by 4% to $1,593 per ounce, attributed to lower sustaining capital expenditure in the non-core portfolio and across the core portfolio, notably at Boddington after planned maintenance, and project timing at Lihir and Cadia.

Operational Highlights and Divestiture Program

Attributable gold production decreased by 4% to 1.478 million ounces, as expected, due to the previously announced closing of non-core asset sales. This was partially offset by increased production from Yanacocha, Peñasquito, Nevada Gold Mines, and Boddington. The company has maintained a strong balance sheet, ending the quarter with $6.2 billion in cash and $10.2 billion in total liquidity, reducing debt by $372 million since the last earnings call. Newmont remains on track to receive over $3.0 billion in after-tax cash proceeds from its divestiture program this year, including approximately $2.5 billion from divested assets and $470 million from the sale of equity shares in Greatland Resources and Discovery Silver.

Management Outlook and Guidance

Newmont's Chief Executive Officer, Tom Palmer, emphasized the company's strong second-quarter performance and commitment to achieving its 2025 guidance. The company remains focused on strengthening its safety culture, stabilizing operations, and delivering long-term shareholder value. Attributable gold production for the Core Portfolio in 2025 is expected to be approximately 50% weighted towards the second half of the year. Sustaining capital for the Core Portfolio is also expected to be weighted towards the second half of 2025 due to ongoing optimization, increased investment at Cadia, and ramp-ups at Red Chris, Brucejack, and Tanami. Development capital for the Core Portfolio is anticipated to increase in the second half of 2025, driven by non-critical path spend at Ahafo North and increased expenditures at Cadia and Tanami.