Newmont delivers $1.2bn free cash flow—But that’s not the only surprise in Q1 2025

How Did Newmont Achieve a Record-Setting First Quarter in 2025?

Newmont Corporation, the world’s largest gold miner, delivered a standout financial performance in the first quarter of 2025, posting a net income of $1.9 billion and generating a record $1.2 billion in free cash flow. This marks a powerful start to the year for the Denver-based mining major, solidifying confidence in its strategic direction, particularly after the successful execution of its aggressive non-core asset divestiture programme. Backed by surging gold prices and disciplined operational execution across its Tier 1 portfolio, the company’s results position it well to meet its full-year 2025 guidance.

What Drove Newmont’s Earnings Surge in Q1 2025?

Attributable gold production for the quarter totalled 1.54 million ounces, primarily driven by output from Newmont’s premier Tier 1 assets. The company also produced 35,000 tonnes of copper. While gold production declined 19% quarter-on-quarter due to asset sales and planned mine sequencing, this was largely offset by a spike in average realised gold prices, which climbed to $2,944 per ounce — a $301 increase from Q4 2024.

These pricing tailwinds helped offset the impact of higher costs applicable to sales (CAS), which rose to $1,227 per ounce, and an even sharper increase in all-in sustaining costs (AISC), which escalated 13% sequentially to $1,651 per ounce. The cost escalation was primarily attributed to lower volumes, increased royalties, and changes in inventory valuation following reserve pricing updates.

How Significant Was Newmont’s Asset Divestiture Strategy?

Newmont’s transformation into a leaner, higher-margin producer was a key focus in early 2025. By completing the sale of all its previously designated non-core operations — including Musselwhite, Éléonore, Cripple Creek & Victor (CC&V), Porcupine, and Akyem — the company secured over $2.5 billion in after-tax cash proceeds in the first half of the year, with total expected gross proceeds from the programme reaching up to $4.3 billion. This substantial capital inflow strengthened the company’s already robust balance sheet and funded both shareholder returns and strategic investments.

The sales, finalised in February and April, were part of Newmont’s broader realignment strategy to concentrate on its most profitable assets across high-confidence jurisdictions. These divestitures followed through on an announcement made in 2024 to streamline operations and improve overall portfolio quality.

Is Newmont’s Balance Sheet Now Among the Strongest in the Mining Sector?

Yes. Newmont exited the quarter with $4.7 billion in cash and total liquidity of approximately $8.8 billion. It also slashed its net debt significantly, reducing it by $1 billion, including the early redemption of $928 million in 2026 Notes and additional debt repurchases of $75 million.

Its net debt-to-adjusted EBITDA ratio now stands at just 0.3x, giving Newmont an enviable degree of financial flexibility. This balance sheet strength allowed the miner to continue rewarding shareholders — with $1 billion returned via dividends and buybacks so far in 2025 — while still advancing high-potential projects such as Ahafo North and expansion efforts at Pueblo Viejo.

How Did Newmont’s Joint Ventures and International Interests Perform?

Newmont’s 38.5% stake in Nevada Gold Mines (NGM), a joint venture with Barrick Gold, produced 216,000 ounces during the quarter — down 23% sequentially. Costs at NGM rose sharply, with AISC jumping to $1,789 per ounce. Similarly, Newmont’s 40% equity interest in Pueblo Viejo yielded 49,000 ounces, with capital contributions of $20 million linked to ongoing expansion.

In Ecuador, Newmont’s 32% equity stake in Lundin Gold’s Fruta del Norte mine posted improved results, delivering 43,000 ounces, up 10% from the prior quarter. These equity investments continue to provide important diversification and optionality to Newmont’s broader portfolio, despite being affected by higher operating costs and capital commitments.

What Are the Key Outlook Drivers for 2025?

Newmont reaffirmed its full-year guidance of 5.9 million attributable gold ounces, of which 5.6 million are expected from Tier 1 assets. Cost guidance remains at $1,200/oz CAS and $1,630/oz AISC on a consolidated basis. Sustaining and development capital expenditure guidance stands at $1.875 billion and $1.33 billion respectively.

The company anticipates a 48-52 production split across H1 and H2, with H2 expected to benefit from increased output at Pueblo Viejo and Nevada Gold Mines, along with Ahafo North reaching commercial production. However, the second quarter is expected to see slightly elevated costs and reduced free cash flow due to peak capital spending and tax liabilities from Q1’s divestiture gains.

How Is Newmont Managing Long-Term Environmental Liabilities?

Newmont remains committed to responsible closure and reclamation, allocating $800 million for full-year 2025 activities. Of this, $600 million is earmarked for water treatment infrastructure at the Yanacocha site in Peru. In Q1 alone, $95 million was spent on environmental remediation, illustrating Newmont’s proactive stance in legacy mine management and ESG compliance.

What Is the Sentiment on Newmont’s Stock Post-Q1?

Investor sentiment around Newmont Corporation has remained optimistic following its Q1 results. The stock responded positively in early trading after the results announcement, supported by the record free cash flow, improved financial leverage, and clarity on the strategic portfolio shift. Institutional activity has seen steady inflows, especially from dividend-focused and ESG-compliant funds.

However, the elevated CAS and AISC levels remain a point of scrutiny. The company’s ability to bring down these metrics over the coming quarters — especially as its capital spending moderates and new projects come online — will be key in sustaining market confidence.