01—Abstract
Summary
Summary of the 8-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.
Newmont Corporation (NYSE: NEM) reported fourth quarter and full-year 2024 results on February 20, 2025, describing 2024 as a transformational year centered on integrating the Newcrest acquisition, divesting non-core assets, and establishing a stable operating platform.
Full-year net income attributable to Newmont stockholders was $3.4 billiona, with Adjusted Net Income of $3.48 per diluted share and Adjusted EBITDA of $8.7 billion. Operating cash flow was $6.3 billion and Free Cash Flow was $2.9 billion, including a record $1.6 billion in the fourth quarter. Attributable gold production was 6.8 million ounces, and net debt to Adjusted EBITDA fell to 0.6x, with $3.6 billion in cash and $7.7 billion in total liquidity.
The company announced agreements to divest six non-core assets (Akyem, CC&V, Éléonore, Musselwhite, Porcupine and Telfer) plus its Havieron interest, with potential total proceeds of up to $4.3 billionb. Telfer and Havieron closed in December 2024, and up to $2.5 billion in cash is expected in the first half of 2025. Newmont also repurchased $1.2 billion of shares in 2024 under a $3.0 billion program and declared a $0.25 quarterly dividend.
For 2025, guidance calls for approximately 5.6 million attributable ounces from the Total Tier 1 Portfolio at an AISC of $1,620c per ounce, with total attributable production of 5.9 million ounces including first-quarter output from non-core assets. Investors should note that guidance assumes a $2,500 per ounce gold price, that production is weighted toward the second half (52%), and that first-quarter costs will be notably elevated. Management also flagged heavy 2025 development and sustaining capital (about $1.3 billion and $1.8 billion for the Tier 1 Portfolio), elevated Cadia gold output decline of roughly 40%, and roughly $600 million annual spending on Yanacocha water treatment.
02—Key points
Key Highlights
- FY2024 Net income attributable to Newmont of $3.35B; Adjusted Net Income of $3.99B ($3.48/diluted share), up 201% year over year
- FY2024 Adjusted EBITDA of $8.7B and Free Cash Flow of $2.9B; record Q4 Free Cash Flow of $1.6B
- Net debt to Adjusted EBITDA reduced to 0.6x; $1.4B of debt reduced over the last 12 months, plus early redemption of $928M of 2026 Notes in February 2025
- Divestiture program: up to $4.3B in total proceeds, including up to $2.5B cash expected in 1H 2025 (net of taxes and closing costs)
- 2025 guidance: 5.9M attributable gold ounces total (5.6M Tier 1), Tier 1 AISC of $1,620/oz, sustaining capital ~$1.8B and development capital ~$1.3B
- Shareholder returns: $1.2B repurchased in 2024 under a $3.0B authorization through October 2026; $1.1B in total dividends paid; Q4 dividend of $0.25/share
- 2025 guidance assumes a $2,500/oz gold price, with 52% of production in 2H25 and notably higher Q1 costs; Yanacocha water treatment spending is expected to average ~$600M annually over the next two years
03—Questions
Frequently Asked Questions
How much of Newmont's 2024 performance came from gold price versus operations?
The average realized gold price rose 23% to $2,408/oz for 2024, which was the main driver of the 58% increase in total sales to $18.7B and the 201% rise in Adjusted Net Income. Attributable gold production was 6.8M ounces, and Gold AISC rose 5% to $1,516/oz, so most of the margin improvement came from price rather than cost reduction.
What are the proceeds and timing from the non-core asset divestitures?
Newmont has announced agreements for all non-core operations and the Havieron interest, with potential total gross proceeds of up to $4.3B including $527M from other investments. Telfer and Havieron closed in December 2024. Up to $2.5B in cash is expected in the first half of 2025, though several sales (Akyem, Porcupine) carry contingent payments and closing is subject to conditions.
Why are 2025 costs expected to be higher, and when?
Tier 1 Gold AISC guidance of $1,620/oz is higher than 2024 due to higher royalties and production taxes from the stronger gold price, about 3% cost escalation, and higher sustaining capital for tailings work. Q1 2025 will be notably higher-cost because it includes 0.3M ounces from non-core assets at a $1,830/oz AISC, and Tier 1 production is only 23% weighted to Q1. Free cash flow in Q1 will also be affected by working capital outflows for previously accrued taxes and employee benefits.
How sensitive is Newmont's 2025 outlook to gold prices?
Guidance assumes $2,500/oz gold. Each $100/oz change in gold price is estimated to move pretax revenue and costs by about $517M for the Total Tier 1 Portfolio, though this excludes roughly $10/oz of royalty, production tax and worker participation effects per $100/oz change. Currency assumptions (AUD at $0.70, CAD at $0.75) also materially affect results.
What is the outlook for Cadia and the Panel Cave projects?
Cadia gold production is expected to fall about 40% in 2025 as the mine transitions to Panel Cave 2-3, with growth resuming in 2027. PC2-3 is expected to yield about 1.0M ounces over its life, with peak production of 100-150 thousand ounces per year, and Newmont's remaining development spend is estimated at $150-250M. The PC1-2 project remains under review, with a fuller update expected in 2025.
04—Continue