Newmont reports record cash flow despite lower production in Q2

Even with a year-over-year decline in gold output, Newmont Corporation—the world’s largest gold producer—reported record quarterly free cash flow in the second quarter, fueled by significantly higher gold prices and disciplined cost control.

On Thursday, after the North American equity markets closed, Newmont Corporation reported adjusted net income of $1.6 billion, or $1.43 per diluted share, a substantial increase from the $834 million, or $0.72 per share, reported in the second quarter of last year. According to consensus estimates, equity analysts were expecting net income of $1.18 per share.

The robust earnings reflect the company’s average realized gold price of $3,320 per ounce, up 40% from the second quarter of 2024.

Newmont said it produced approximately 1.5 million ounces of gold between April and June, a decrease of roughly 7% year-over-year.

In addition to higher gold prices, the company said it successfully managed costs, with All-in Sustaining Costs (AISC) falling to $1,593 per ounce, down 4% compared to the first quarter.

“Building from CAS per ounce, the decrease is primarily due to $81 million in lower sustaining capital spend in the Non-Core Portfolio and across the Core Portfolio,” the company noted in its earnings report.

“Newmont delivered a strong second quarter, producing approximately 1.5 million attributable gold ounces and generating an all-time record quarterly free cash flow of $1.7 billion, underscoring the strength of our world-class portfolio and the disciplined execution of the commitments we shared at the beginning of the year,” said Tom Palmer, Newmont’s Chief Executive Officer, in a prepared statement.

As its cash reserves grow, the company plans to continue rewarding shareholders. In the report, Newmont said its board authorized an additional $3.0 billion share repurchase program. This follows $1 billion already spent on share buybacks, along with maintaining its dividend at $0.25 per share.

So far this year, Newmont has produced 3 million ounces of gold. Palmer said the company remains on track to meet its annual guidance.