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Investing.com -- Newmont Corporation (NYSE: NEM) reported first quarter 2025 results that beat analyst expectations, driven by higher gold prices and strong production from its Tier 1 portfolio of assets. The world’s largest gold miner saw its shares rise 0.8% in after-hours trading Wednesday following the release.
Newmont posted adjusted earnings of $1.25 per share, significantly above the $0.88 per share analysts were expecting. Revenue jumped 25% year-over-year to $5.01 billion, also topping estimates of $4.57 billion.
The company benefited from a surge in gold prices, with its average realized gold price rising to $2,944 per ounce in Q1, up from $2,090 per ounce a year earlier. This helped offset a 19% decline in gold production to 1.54 million ounces, which was expected due to asset sales and planned mine sequencing.
"Newmont has delivered 1.5 million attributable gold ounces and generated a record first quarter free cash flow of $1.2 billion, demonstrating the strength of our unrivaled Tier 1 Portfolio," said Tom Palmer, Newmont’s President and CEO.
The company said it remains on track to meet its 2025 guidance. It also completed its non-core divestiture program in the quarter, generating up to $4.3 billion in total gross proceeds.
Newmont declared a dividend of $0.25 per share for the first quarter. The company maintained a strong balance sheet, ending Q1 with $4.7 billion in cash and $8.8 billion in total liquidity.
While production declined as expected, Newmont’s all-in sustaining costs rose 13% to $1,651 per ounce compared to the prior quarter. The company said this was primarily due to lower gold production and higher royalty costs.
Looking ahead, Newmont expects second quarter production to be in line with Q1 levels, with costs remaining similar to slightly higher. The company anticipates free cash flow to be adversely impacted in Q2 by asset sales, higher tax payments, and increased capital spending on key projects.