10-Q: Newmont Q3 2025 Earnings Soar on Higher Gold Prices

Newmont Corporation reported a significant increase in net income and free cash flow for the third quarter of 2025, driven by higher realized gold prices and portfolio optimization efforts, despite a decrease in gold production.

Summary

• Net income from continuing operations attributable to Newmont stockholders reached $1,832 million for Q3 2025, a 110.6% increase from $873 million in Q3 2024.
• Diluted earnings per share from continuing operations rose to $1.67 in Q3 2025, up from $0.76 in the prior year.
• Adjusted EBITDA increased by 68% to $3,309 million for Q3 2025, compared to $1,967 million in Q3 2024.
• Sales for Q3 2025 grew by $919 million to $5,524 million, primarily driven by higher average realized gold prices.
• Free cash flow for the nine months ended September 30, 2025, surged by 250.5% to $4,486 million from $1,280 million in the prior year.
• The company maintains a strong financial position with $5.6 billion in consolidated cash and $9.6 billion in total liquidity, reducing net debt to $12 million.
• Consolidated gold production decreased by 16.3% to 1,317 thousand ounces in Q3 2025, compared to 1,574 thousand ounces in Q3 2024.
• All-in sustaining costs (AISC) for gold decreased by 2.8% to $1,566 per ounce in Q3 2025 from $1,611 per ounce in Q3 2024.
• The company completed the sale of its investment in Orla Mining Ltd. for $428 million and announced the sale of the Coffee development project, which closed in October.
• Significant capital management actions include redeeming $3,360 million of senior notes and settling $1,875 million of share repurchases during the nine months ended September 30, 2025.

Sentiment

Score: 8

Explanation: Strong financial performance driven by higher gold prices and strategic divestitures, significantly improving liquidity and reducing debt, despite production declines and ongoing legal/environmental challenges.

Positives

• Net income from continuing operations attributable to Newmont stockholders increased by $959 million to $1,832 million for Q3 2025, up 110.6% year-over-year.
• Diluted EPS from continuing operations rose significantly to $1.67 in Q3 2025 from $0.76 in Q3 2024.
• Adjusted EBITDA increased by 68% to $3,309 million for Q3 2025.
• Sales for Q3 2025 increased by $919 million to $5,524 million, driven by a 40.5% increase in average realized gold price to $3,539 per ounce.
• Free cash flow for the nine months ended September 30, 2025, surged by 250.5% to $4,486 million.
• Strong financial position with $5.6 billion in consolidated cash and $9.6 billion in total liquidity.
• Net debt significantly reduced to $12 million.
• Successful portfolio optimization program with the sale of non-core assets (Orla Mining Ltd. for $428 million, Coffee development project announced).
• Significant debt reduction through redemption of $3,360 million of senior notes.
• Ongoing commitment to shareholder returns with $1,875 million in share repurchases and a declared dividend of $0.25 per share.
• AISC for gold decreased by 2.8% to $1,566 per ounce in Q3 2025.
• Yanacocha gold production increased 63% due to higher leach pad production from injection leaching.

Negatives

• Consolidated gold production decreased by 16.3% to 1,317 thousand ounces in Q3 2025 compared to the prior year.
• Consolidated gold production for the nine months ended September 30, 2025, decreased by 11.8% to 4,167 thousand ounces.
• Costs applicable to sales per gold ounce for the nine months ended September 30, 2025, increased by 6.3% to $1,210 per ounce.
• All-in sustaining costs (AISC) for gold for the nine months ended September 30, 2025, increased by 4.4% to $1,605 per ounce.
• Copper sales decreased by 3.0% to $319 million in Q3 2025.
• The Yanacocha Sulfides project investment decision has been deferred, with operations focusing on residual gold leaching and eventual full closure, exploring liquidation of Minera Yanacocha S.R.L.
• The Conga project (carrying value $890 million) is not anticipated to be developed in the next ten years and remains in care and maintenance, with potential for future impairment.
• Restructuring and severance costs of $87 million in Q3 2025 and $111 million for the nine months ended September 30, 2025, due to workforce reductions and organizational changes.
• Impairment charges of $39 million in Q3 2025, including a full write-down of the Namosi exploration stage property in Fiji.
• Loss on debt extinguishment of $72 million in Q3 2025 and $100 million for the nine months ended September 30, 2025.
• Income tax expense increased to $787 million in Q3 2025 from $244 million in Q3 2024.

Risks

• Revenue, profitability, and future growth are substantially dependent on prevailing metal prices (primarily gold, but also copper, silver, lead, and zinc), which are historically volatile, and a substantial or extended decline could materially adversely affect financial position, results, cash flows, and reserves.
• The carrying value of Property, plant and mine development, Inventories, Stockpiles and ore on leach pads, Investments, certain Derivative assets, Deferred income tax assets, and Goodwill are sensitive to the commodity price outlook, and a decline could result in material impairment charges.
• Operations are exposed to risks associated with public health crises, geopolitical and macroeconomic pressures, including inflationary conditions, central bank countermeasures, supply chain disruptions from global conflicts, and an uncertain labor market and trade environment.
• The Yanacocha Sulfides project investment decision has been deferred, and operations will transition to residual gold leaching and eventual full closure, exploring legal alternatives up to liquidation of Minera Yanacocha S.R.L., which could lead to negative modifications to proven and probable reserves and potential impairment of $1,076 million in long-lived assets (including $827 million for the Sulfides project).
• The Conga project (carrying value $890 million) is not anticipated to be developed in the next ten years and remains in care and maintenance, with potential for a future impairment charge if unable to develop.
• Operations are subject to continually changing and more restrictive environmental laws and regulations, and future expenditures to comply are uncertain.
• The ultimate water treatment costs at Yanacocha remain uncertain as studies continue, potentially leading to future material increases to the reclamation obligation.
• Ongoing studies and negotiations with regulators for alternative long-term remediation plans for water discharge from the Carlton Tunnel at CC&V could require a material adjustment to the remediation liability. Newmont has an indemnification for 90% of certain closure costs over $500 million related to historical mining activities at CC&V.
• Studies and the related comment process for the Alternative Concentration Limit (ACL) application for groundwater issues at the Dawn mill site will extend beyond the current year and could result in future material increases to the remediation obligation.
• The NSW EPA commenced proceedings against Cadia Holdings Pty Ltd. in October 2023, alleging two contraventions related to air pollution from tailings storage facilities, with a liability hearing scheduled for February 16-27, 2026.
• International Royalty Corporation (IRC) filed an action against Newmont and Kirkland Lake Gold Inc., alleging the Strategic Alliance Agreement is oppressive and Newmont breached contractual obligations, seeking $350 million in alleged royalty payments. Newmont intends to vigorously defend.
• Two individual plaintiffs in Ghana filed a writ alleging that mineral exploitation by mining companies without prior Parliamentary ratification is unconstitutional. Newmont intends to vigorously defend, and there is a potential indemnification for the Akyem buyer for fines/penalties if an adverse final judgment occurs for the period prior to lease ratification.
• The Australian Taxation Office (ATO) is reviewing a 2011 internal reorganization, believing it is subject to capital gains tax of approximately $85 million. Newmont disputes this, and a judgment is expected in Q4 2025.
• Multiple shareholder class action and derivative lawsuits have been filed, alleging materially false/misleading statements, inadequate internal controls, improper share repurchases, and stock sales by the CEO, seeking unspecified monetary damages, restitution, disgorgement, and governance reforms. Outcomes are unpredictable.
• Fluctuations in foreign currency exchange rates can increase or decrease profit margins, capital expenditures, cash flow, and Costs applicable to sales per ounce to the extent costs are paid in local currency at foreign operations. A hypothetical 10% adverse movement could increase Costs applicable to sales per ounce by approximately $75 million for the nine months ended September 30, 2025.
• Market liquidity risk exists for derivatives, meaning a derivative might not be eliminated quickly.
• Credit risk exists for derivatives, where a third party might fail to fulfill its performance obligations.
• The Board of Directors may revise or terminate the $3 billion share repurchase authorization at any time.

Future Outlook

The company expects to declare commercial production at the Ahafo North project in Ghana in October 2025. Yanacocha operations will complete mining of oxide ores in Q4 2025, with the investment decision for the Sulfides project deferred, focusing instead on residual gold leaching and eventual full closure. The Conga project is not anticipated to be developed in the next ten years and will remain in care and maintenance. The majority of cash expenditures related to the Q3 2025 restructuring and severance plan are expected over the next two quarters. A judgment for the Australian Taxation Office review is anticipated during Q4 2025. The Midnite Mine Water Treatment Plant (WTP) and effluent pipeline are expected to be operating in 2026. Yanacocha was granted an extension to June 2026 to achieve compliance with updated water quality standards, and full permit compliance for the Carlton Tunnel at CC&V is targeted for November 2027. The company is evaluating the impacts of new accounting guidance (ASU 2025-07 and ASU 2024-03). Future dividends and the $3 billion stock repurchase program remain at the Board's discretion.

Management Comments

• Our goal is to create value and improve lives through sustainable and responsible mining.
• We continue to monitor inflationary conditions, the effects of certain countermeasures taken by central banks, and the potential for further supply chain disruptions, as well as an uncertain and evolving labor market and trade environment including tariff and regulatory changes.
• We believe our existing consolidated Cash and cash equivalents, available capacity on our revolving credit facility, and cash generated from continuing operations will be adequate to satisfy working capital needs, fund future growth, meet debt obligations and meet other liquidity requirements for the foreseeable future.

Industry Context

Newmont Corporation, as the world's leading gold company and the only gold company in the S&P 500 Index and Fortune 500, continues to navigate a volatile industry landscape. Its strong ESG performance, evidenced by its inclusion in the Dow Jones Sustainability Index-World and top rankings in sustainability lists, sets a high benchmark. The company's strategic portfolio optimization, including divestitures, aligns with broader industry trends of streamlining operations and focusing on core, high-margin assets amidst ongoing geopolitical and macroeconomic pressures such as inflation and supply chain disruptions. The significant increase in realized gold prices reflects a favorable market environment for gold producers, while challenges in copper sales and production declines highlight the complexities of multi-commodity mining.

Comparison to Industry Standards

• Newmont is the world's leading gold company and the only gold company included in the S&P 500 Index and Fortune 500, positioning it at the top tier of global mining companies.
• The company has been included in the Dow Jones Sustainability Index-World since 2007 and was ranked the top mining company in TIME's listing of the world's most sustainable companies in September 2025, demonstrating superior ESG performance compared to global benchmarks and competitors.
• Newmont's disciplined capital allocation strategy, focusing on self-funding development projects, strategic partnerships, debt reduction, and shareholder returns, aligns with best practices for large-cap mining companies aiming for sustainable long-term value creation.
• The significant reduction in net debt to $12 million and robust liquidity of $9.6 billion indicate a stronger financial position relative to many industry peers who may still be managing higher debt loads or facing liquidity constraints.

Management Changes

Corporate Governance

Legal Proceedings

• **Kirkland Royalty Matter**: International Royalty Corporation (IRC) filed an action against Newmont and Kirkland Lake Gold Inc., alleging the Strategic Alliance Agreement is oppressive and Newmont breached contractual obligations, seeking $350 million in alleged royalty payments. Newmont intends to vigorously defend, with discovery phase ongoing after a motion for summary judgment was denied on May 27, 2024.
• **Ghana Parliament Cases**: Two individual plaintiffs filed a writ alleging that mineral exploitation by mining companies without prior Parliamentary ratification is unconstitutional. Newmont intends to vigorously defend. The company would indemnify the buyer of Akyem (NGRL) for certain fines/penalties if an adverse final judgment occurs for the period prior to lease ratification.
• **Australian Taxation Office (ATO) Review**: The ATO is reviewing a 2011 internal reorganization, believing it is subject to capital gains tax of approximately $85 million (including interest and penalties). Newmont disputes this, and a judgment is expected in Q4 2025 following court proceedings in Q3 2024.
• **Shareholder Class Action (Karas v. Newmont Corp., et al.)**: A putative class action lawsuit filed on January 31, 2025, alleging materially false and misleading statements/omissions regarding operations, production, and costs, leading to stock price declines after Q3 2024 results and guidance. An amended complaint was filed on July 14, 2025, and defendants filed a motion to dismiss on September 12, 2025.
• **Shareholder Derivative Complaints (Gunderson v. Palmer et al., et al.)**: Multiple putative derivative complaints filed between February and May 2025, nominally on behalf of Newmont against its CEO, COO, then CFO, and Board members. Allegations are similar to the class action, including inadequate internal controls, false statements in the 2024 proxy, and improper share repurchases/stock sales. These actions have been consolidated and stayed pending the resolution of motions to dismiss in the Karas class action.
• **Cadia Mine Site Air Pollution Allegations**: The NSW EPA commenced proceedings against Cadia Holdings Pty Ltd. in October 2023, alleging two contraventions related to air pollution from tailings storage facilities. Cadia Holdings pleaded not guilty, and a liability hearing is scheduled from February 16-27, 2026.

Related Party Transactions

• The Fruta del Norte mine is wholly owned and operated by Lundin Gold Inc., in which Newmont holds a 32% interest, and is accounted for as an equity method investment on a quarter lag.
• Newmont holds a 38.5% proportionate interest in Nevada Gold Mines ("NGM"), which it does not directly manage. Newmont purchases its proportionate share of gold dor from NGM for resale to third parties.
• Newmont purchases its portion (40%) of gold and silver produced from Pueblo Viejo at market price and resells those ounces to third parties.
• Newmont USA's primary investments are comprised of its 38.5% interest in NGM.
• Newmont USA's subsidiary guarantees are general unsecured senior obligations of Newmont USA and rank equal in right of payment to all of Newmont USA's existing and future senior unsecured indebtedness.

Stakeholder Impact

• **Shareholders**: Positive impact from increased net income, EPS, Adjusted EBITDA, and free cash flow. Benefit from ongoing share repurchase programs ($3 billion authorized) and consistent dividends ($0.25 per share). Potential risks from ongoing legal proceedings and uncertainties around future project development (Yanacocha Sulfides, Conga).
• **Employees**: Impacted by restructuring and severance costs ($87 million in Q3 2025) due to workforce reductions and organizational streamlining.
• **Local Communities/Environment**: Ongoing environmental remediation efforts at Yanacocha, CC&V, and Midnite Mine. Commitment to ESG performance (top mining company in TIME's sustainability listing, Dow Jones Sustainability Index-World). Potential for future material increases to reclamation obligations.
• **Creditors**: Improved financial flexibility and strength of the balance sheet with significant debt reduction ($3,360 million redeemed) and low net debt ($12 million). Compliance with all existing debt covenants.
• **Customers/Suppliers**: Potential for supply chain disruptions due to macroeconomic pressures.
• **Regulatory Authorities**: Ongoing engagement with regulatory bodies regarding environmental compliance (MINAM, MINEM, EPA, WDOH, NSW EPA) and tax matters (ATO).

Next Steps

• Declare commercial production at the Ahafo North project in Ghana in October 2025.
• Complete the sale of the Coffee development project (closed in October 2025).
• Complete mining of oxide ores at Yanacocha in Q4 2025.
• Focus Yanacocha operations on residual gold leaching and eventual full closure.
• Continue evaluating legal alternatives up to liquidation of Minera Yanacocha S.R.L.
• Await judgment for the Australian Taxation Office review in Q4 2025.
• Make majority of cash expenditures related to the Q3 2025 restructuring and severance plan over the next two quarters.
• Continue construction and expect operation of Midnite Mine WTP and effluent pipeline in 2026.
• Achieve compliance with Yanacocha water quality standards by June 2026.
• Attend liability hearing for Cadia air pollution allegations from February 16-27, 2026.
• Work with the Division on a proposal for the Discharger Specific Variance (DSV) and an extension request for compliance with certain other standards for the Carlton Tunnel at CC&V.
• Continue to execute the $3 billion stock repurchase program.
• Evaluate impacts of ASU 2025-07 and ASU 2024-03 on financial statements and disclosures.

Key Dates

Recommendation

The company demonstrated strong financial performance in Q3 2025, with substantial increases in net income, EPS, Adjusted EBITDA, and free cash flow, primarily driven by higher realized gold prices. The aggressive portfolio optimization program, including significant divestitures, has streamlined operations and contributed to a dramatic reduction in net debt to $12 million, indicating a much stronger balance sheet. The ongoing commitment to shareholder returns through substantial share repurchases and consistent dividends further enhances investor appeal. While gold production saw a decline and some project uncertainties remain, the overall financial health, strategic focus, and capital management initiatives position Newmont favorably for future value creation, making it an attractive investment.

Keywords

Gold mining, Copper mining, Silver mining, Lead mining, Zinc mining, SEC filing, Quarterly report, Financial results, Production, All-in sustaining costs, AISC, Free cash flow, FCF, Net income, EPS, EBITDA, Debt, Liquidity, Divestitures, Portfolio optimization, Yanacocha, Conga, Legal proceedings, Share repurchases, Dividends, Capital expenditures, Exploration, Risk management, Corporate governance, Newmont