Newmont Corporation (NYSE:NEM, TSX:NGT, ASX:NEM, ETR:NMM) shares surged to a record high after the company delivered a strong earnings beat for the June quarter, with investors responding to a sharp improvement in production, costs and cashflow.
Shares rose as much as 6.2% on Thursday. They were 3.36% higher ($3.09) at midday Friday on the ASX at AU$94.97.
Standout quarterly result
The rally followed a standout quarterly result, which saw adjusted net income of US$1.59 billion — a 23% beat on consensus — and earnings before interest, tax, depreciation and amortisation (EBITDA) of US$2.997 billion, 13% above expectations.
Gold production for the quarter reached 1.48 million ounces, up 6% on consensus, while all-in sustaining costs (ASIC) fell 7% to US$1,593 per ounce, aided by strong operational performances at Cadia and Penasquito.
Free cash flow hit a record US$1.7 billion — more than double analyst forecasts — although part of the uplift reflected the timing of capital expenditure, with US$275 million of expected Q2 capex pushed into the second half. Net debt came in at US$1.4 billion, 18% below estimates.
Strong beat
Barrenjoey analyst Daniel Morgan said there was “a lot to like” about the result, noting the “strong beat on operations which flows into a financial beat”. He also pointed to a US$90 million favourable impact from provisional pricing that may not have been widely anticipated.
In a show of confidence, Newmont authorised an additional US$3 billion share buyback, doubling its total buyback program to US$6 billion. Fiscal year 2025 guidance was maintained, though the company shifted its production weighting to a balanced 50:50 first and second half split.
“Our interpretation is that NEM is tracking ahead of plans,” Morgan said, suggesting the unchanged guidance may reflect “conservatism” following prior misses.