Newmont Mining (NEM.US), the world's largest gold producer, reported fourth-quarter earnings on Thursday that exceeded Wall Street expectations, as record-high gold prices offset a decline in production. The company also announced plans to invest $1.4 billion in developing assets acquired through its takeover of Newcrest.
For the quarter ended December 31, Newmont's revenue rose 21% year-over-year to $6.82 billion, surpassing analysts' forecast of $6.19 billion. Gold sales contributed $5.81 billion, a 20% increase from the same period last year. Net income for the quarter was $1.3 billion, or $1.19 per share, compared with $1.4 billion, or $1.24 per share, a year earlier. Adjusted earnings per share came in at $2.52, significantly higher than the consensus estimate of $2.05.
In recent months, gold prices have repeatedly reached new all-time highs, driven by expectations of U.S. interest rate cuts, heightened geopolitical tensions, and economic uncertainty. The average gold price in the fourth quarter of 2025 was $4,135 per ounce, up 56% year-over-year. Newmont reported an average realized gold price of $4,216 per ounce, a nearly 60% surge. However, gold production fell nearly 24% to 1.45 million ounces due to planned sequencing adjustments at mines including Penmont, Ahafo South, Yanacocha, Brucejack, and Cadia.
For the full year 2025, the company reported adjusted earnings per share of $6.89 and total revenue of $22.67 billion, both exceeding analysts' projections of $6.53 and $22.07 billion. Annual gold sales reached $19.3 billion, a 23% increase. Production from the core asset portfolio contributed 5.7 million equity ounces of gold, with total gold output reaching 5.9 million ounces, alongside 28 million ounces of silver and 135,000 tonnes of copper. The average realized gold price for the year was $3,498 per ounce, a 45% jump from $2,408 at the end of 2024.
President and CEO Natascha Viljoen described 2025 as a milestone year for the company, stating, "Not only did we successfully meet our full-year guidance, but we also made substantial progress in strengthening our financial foundation and strategic commitments." This included record free cash flow of $7.3 billion, $3.6 billion in proceeds from portfolio optimization, $3.4 billion returned to shareholders, $3.4 billion in debt reduction, and a strong net cash position at year-end.
Looking ahead to 2026, Viljoen said, "We will continue to drive margin expansion and maintain strong free cash flow generation, leveraging our unmatched portfolio of world-class assets." The company expects full-year gold production of 5.3 million ounces, down from 5.89 million ounces in the previous year, with 3.9 million ounces coming from company-operated projects.
In terms of capital allocation, Newmont plans to invest $1.4 billion in advancing several near-term development projects, including the Panel Caves project at Cadia, the Tanami Expansion 2, and a feasibility study for the Red Chris mine. The two Australian projects and the Canadian Red Chris mine are core assets acquired in the company's $17 billion acquisition of Newcrest in 2023. Additionally, the company plans to allocate approximately $1.95 billion in sustaining capital, focusing on tailings facilities at the Cadia and Boddington mines to extend the overall life of its operations.
Viljoen emphasized, "Improving operational efficiency is our top priority, and our site teams are continuously supporting the Nevada gold mines." Following the earnings release, the company's shares initially rose more than 2% in after-hours trading but later gave up gains and fell approximately 2%.