The world's largest gold producer just delivered one of its strongest quarterly performances in company history, posting a record US$1.7 billion in cash flow.
It also revealed an enormous 99% increase in earnings per share (EPS) from the previous quarter.
Not only that, Newmont Corporation (ASX : NEM) has in the last ~18 months fundamentally transformed its asset base, cost structure, and capital allocation strategy through a targeted divestiture program that saw it draw back from world-class operations such as Australia's Telfer gold mine.
Newmont generated a whopping $1.7 billion during Q2 alone off a produced 1.5Moz of gold.
Average realised gold prices jumped to US$3,320/oz in Q2 from $2,944/oz in Q1 - a 12.8% quarter-over-quarter surge on the back of all-time high gold prices that transformed operational performance into an exceptional three-month cash-generating payday.
The strategic divestiture program, led by President & CEO Tom Palmer, also delivered $3 billion in after-tax cash proceeds from non-core asset sales in 2025, including $2.5 billion from divested operations and $470 million from equity stakes in Greatland Resources and Discovery Silver.
Gold costs dropped 1% to $1,215/oz on a co-product basis, while all-in sustaining costs fell 4% to $1,593/oz.
The goldie shed its higher-cost operations and kept its Tier 1 assets that generated record cash flows when gold prices rallied.
The quarterly dividend remains at $0.25 per share.
Future shines bright
With $6.2 billion in cash and $10.2 billion in total liquidity, Newmont announced an additional $3 billion share repurchase programme on top of the $1 billion already returned to shareholders through buybacks and dividends since the last earnings call.
Debt reduction continues with $372 million eliminated since Q1, keeping Newmont's investment-grade balance sheet intact.
Central bank buying continues at robust levels with 900t forecast for 2025, while investment demand from ETFs and institutional investors remains strong across all regions.
Geopolitical uncertainty and U.S. trade policy volatility are driving safe-haven flows that could push gold 10-15% higher if economic conditions deteriorate further.
Gold reached 40 new record highs year-to-date with total demand surpassing $100 billion in Q3 2024 for the first time.
Newmont remains on track to meet its 2025 guidance with attributable gold production expected to be 50% weighted to the second half of the year.
The company also produced 36,000t of copper during Q2 alongside its gold output.
Third quarter free cash flow is expected to be adversely impacted by higher capital spend, increased cash tax payments from previous periods' profitability, and continued spending on Yanacocha water treatment facilities construction.
The company ended Q2 with a debt load reduced by ~$1 billion since the beginning of 2025.
