Newmont Sees Q1 2025 Net Income Surge Tenfold, Thanks To Soaring Gold Prices
Newmont (TSX: NGT) has reported its financials for the first quarter of 2025, with total revenue reaching $5.01 billion, a 25% increase from $4.02 billion in Q1 2024, and a slight decline from $5.65 billion in the prior quarter.
The increase was almost entirely price-driven, as gold’s average realized price soared to $2,944 per ounce, up 41% year-over-year and 11% quarter-over-quarter.
Cost of sales came in at $2.11 billion, relatively flat compared to Q4 2024 but higher than Q1 2024’s $2.06 billion. A key swing factor in Newmont’s reported performance was the $276 million gain on sale of assets, reversing a $268 million loss posted in Q4 2024. Fair value gains of $291 million on investments and options added further non-recurring tailwinds to the income line. These gains drove net income to $1.89 billion, up more than tenfold from $170 million in Q1 2024 and 35% from $1.40 billion in Q4 2024.
However, adjusted net income fell to $1.40 billion from $1.59 billion in the prior quarter, indicating a 12% quarter-over-quarter decline. Adjusted EBITDA also dropped to $2.63 billion from $3.05 billion in Q4 2024.
Net cash from operating activities totaled $2.03 billion, up significantly from $776 million a year earlier but down from $2.51 billion in Q4 2024—a 19% sequential drop. Free cash flow, though still a Q1 record at $1.21 billion, declined sharply from the prior quarter’s $1.64 billion.
On the balance sheet, Newmont ended the quarter with $4.70 billion in cash and cash equivalents, up from $3.62 billion at the end of 2024. The company used divestiture proceeds to reduce debt significantly: total debt was cut from $8.48 billion to $7.51 billion, and net debt declined from $5.3 billion to $3.2 billion.
On the production side, the attributable gold output dropped to 1.54 million ounces, down 8% year-over-year and 19% quarter-over-quarter from 1.9 million ounces in Q4 2024. This decline was largely due to divestitures of five mining assets (Musselwhite, Éléonore, CC&V, Porcupine, and Akyem). Lower production also stemmed from safety-related shutdowns at Cerro Negro, mine sequencing at Tanami and Boddington, and weaker performance at the Nevada Gold Mines joint venture, which saw output fall 23% quarter-over-quarter.
Gold sales rose to $4.25 billion, up 27% YoY but gold ounces sold fell 10% YoY, from 1.6 million to 1.44 million. While higher gold prices temporarily lifted revenue, the cost side of the equation continued to deteriorate. Gold CAS per ounce rose to $1,227 from $1,096 in the prior quarter and $1,057 in Q1 2024. Gold AISC per ounce climbed to $1,651, up from $1,463 in Q4 and $1,439 a year ago—marking the highest all-in cost in recent history.
Newmont’s 2025 guidance remains unchanged, with management reiterating its full-year target of 5.9 million ounces of attributable gold production.
Newmont last traded at $73.70 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
