In This Article:
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Gold Production: 1.5 million ounces.
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Copper Production: 35,000 tonnes.
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Free Cash Flow: $1.2 billion, a record for the first quarter.
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Cash Flow from Operations: $2 billion, a first-quarter record.
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Adjusted EBITDA: $2.6 billion.
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Adjusted Net Income: $1.25 per diluted share.
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Gold All-In Sustaining Costs: $1,651 per ounce.
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Divestment Proceeds: More than $2.5 billion in after-tax cash proceeds this year.
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Debt Reduction: $1 billion repaid since the start of the year.
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Share Repurchases: $755 million so far this year.
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Cash Balance: $4.7 billion at the end of the quarter.
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First Quarter Dividend: $0.25 per share.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Newmont Corp (NYSE:NEM) reported a record first quarter free cash flow of $1.2 billion, driven by strong operational performance and favorable gold prices.
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The company successfully completed its divestment program, generating over $2.5 billion in after-tax cash proceeds this year, which strengthens its balance sheet.
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Newmont Corp (NYSE:NEM) achieved a notable decrease in the frequency of significant potential safety events, reflecting improvements in its safety culture.
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The company is on track to meet its full-year guidance, with first-quarter production of 1.5 million ounces of gold and 35,000 tonnes of copper.
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Newmont Corp (NYSE:NEM) has completed approximately $2 billion in share repurchases from its $3 billion program, demonstrating a commitment to returning capital to shareholders.
Negative Points
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The company anticipates increased working capital needs in the second quarter due to the timing of cash tax and interest payments.
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Newmont Corp (NYSE:NEM) expects sustaining capital expenditures to increase in the second quarter, particularly at Cadia, which may impact cash flow.
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The divestment of noncore assets means future financial results will no longer include production and associated free cash flow from these operations.
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There is ongoing uncertainty regarding tariffs and their potential impact on the company's cost structure, particularly in consumables and labor.
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The company is in an investment cycle with higher unit costs, and there is a focus on improving margins and leveraging the full strength of its portfolio.
Q & A Highlights
Q: Lihir's cash costs dropped significantly this quarter. How should we think about the cash cost profile there, and are you surprised by the cost levels you're achieving? A: Thomas Palmer, CEO: Our focus at Lihir is on configuring the mine to sustainably work through Phase 14A. We completed significant shutdowns last year, including rebuilding autoclave 4. Karyn Ovelmen, CFO: There was a $100 million impact from inventory adjustments, which is non-cash and will normalize over the year. We expect Lihir to meet its full-year cost guidance.