Newmont's profit soars on higher gold production, prices

Newmont, the world’s biggest gold miner, has reported a jump in full-year profit on the back of higher production and rising prices.

The company booked a US$3.35 billion ($5.2 billion) profit for 2024, up from a US$2.5 billion loss a year earlier.

Its adjusted net income for the December quarter was US$1.40 per share, compared with analysts' average estimate of US$1.08 per share.

Newmont, which acquired Australia’s Newcrest in 2023 to cement its place as the world’s top gold miner, produced 6.8 million gold ounces for the year, and 1.9 million gold equivalent ounces from copper, silver, lead and zinc.

The company's quarterly gold production rose by 9.2 per cent year-over-year to 1.90 million ounces, while the average gold price jumped from 31.9 per cent to $2,643 per ounce.

This price increase reflects the ongoing demand for gold as a safe-haven asset, driven by global economic uncertainty and geopolitical tensions.

Newmont’s quarterly gold production increased by 9.2 per cent over the year earlier to 1.90 million ounces, while price was up by 31.9 per cent at $2,643 per ounce.

All-in-sustaining costs for gold, an industry metric reflecting total expenses, were down 1.5 per cent at $1,463 per ounce, also aiding the company’s earnings.

Gold production

Newmont now expects gold production of about 5.9 million ounces in the current year, above Wall Street's estimate of 5.87 million ounces.

Newmont’s President and Chief Executive Officer, Tom Palmer, said 2024 was a transformational year for the mining giant with a focus on the integration of the Newcrest portfolio, divestment of the non-core assets, and transitioning the business onto a stable operating and investment platform.

“We have deliberately streamlined Newmont into the world's best collection of Tier 1 gold assets, with a strong foundation of operational and financial performance,” he said.

“Our record fourth quarter gave a glimpse into the promising potential of the business and allowed Newmont to deliver record operating cash flows," Tom Palmer added.

With gold prices predicted to remain strong and the proceeds from a divestiture of its non-core assets expected to materialise in the first half of 2025, it is expected that the company’s balance sheet and liquidity will remain robust.

“This year, we are focused on continuing to improve the business across our safety, costs and productivity performance. Looking to 2025 and beyond, our priorities are clear: maximise the potential of our Tier 1 portfolio, meet our commitments, return capital, and drive long-term value for our shareholders," Tom Palmer said. 

Divestiture proceeds

Total gross proceeds from transactions announced in 2024 are expected to be up to $4.3 billion, including contingent payments and before-closing adjustments.

This includes $3.8 billion from non-core divestitures and $527 million from the sale of other investments, detailed as follows:

Up to $475 million from the sale of the Telfer operation and Newmont's 70 per cent interest in the Havieron project, which closed on December 4, 2024;

Up to $1.0 billion from the sale of the Akyem Operation, expected to close in the first half of 2025;

Up to $850 million from the sale of the Musselwhite operation, expected to close in the first quarter of 2025;

An amount of $795 million from the sale of another operation, expected to close in the first quarter of 2025;

Up to $275 million for the sale of the CC&V operation, expected to close in the first quarter of 2025;

Up to $425 million for the sale of the Porcupine operation, expected to close in the first half of 2025; and

An amount of $527 million from the completed sale of other investments, including the sale of the Lundin Gold stream credit facility and offtake agreement, and the monetisation of Newmont's Batu Hijau contingent payments.