Newmont has delivered a robust March 2025 quarter, supported by its newly finalised Tier 1 portfolio.
The US gold giant produced 1.5 million attributable ounces of gold and 35,000 tonnes of copper during the quarter, with 1.3 million ounces coming from Newmont’s newly revitalised Tier 1 portfolio.
In February 2024, Newmont announced its plans to divest mines and projects it doesn’t consider to be ‘Tier 1’ assets.
Newmont defines a Tier 1 asset as an operation with “(more than) 500,000 gold equivalent ounces per year consolidated, (an) average all-in sustaining cost per ounce in the lower half of the industry cost curve, and a mine life (greater than) 10 years in countries classified in the A and B rating ranges of Moody’s, S&P and Fitch”.
As part of its divestment venture, Newmont sold:
- the Telfer operation and its 70 per cent stake in the Havieron project in Western Australia for $US475 million
- the Akyem operation in Ghana for $US1 billion
- the Musselwhite operation in Canada for $US850 million
- the Éléonore operation in Canada for $US795 million
- the Cripple Creek and Victor operation in Colorado, US for up to $US275 million
- the Porcupine operation in Canada for $US425 million
- $US527 million from the completed sale of other investments, including the sale of the Lundin Gold stream credit facility and offtake agreement.
With the sale of Akyem and Porcupine finalised last week, the divestment program is now officially complete. Newmont generated $US4.3 billion in total proceeds from the transactions.
Newmont’s Tier 1 portfolio now comprises 12 operations, including Boddington, Tanami and Cadia in Australia, Lihir in Papua New Guinea, Brucejack and Red Chris in Canada, Ahafo in Ghana, Peñasquito in Mexico, Cerro Negro in Argentina, Yanacocha in Peru, and Merian in Suriname.
“Following on from a robust fourth quarter performance, Newmont has delivered 1.5 million attributable gold ounces and generated a record first quarter free cash flow of $US1.2 billion, demonstrating the strength of our unrivalled Tier 1 portfolio,” Newmont president and chief executive officer Tom Palmer said.
During the March quarter, Newmont generated $US2 billion in cash from operating activities and $US2.6 billion in adjusted earnings before interest, taxes, depreciation, and amortisation.
The company also declared a $US0.25 per share dividend for the quarter, delivering $US1 billion in total dividends to shareholders. Newmont also produced $US1.2 billion in free cash flow.
Newmont’s 2025 production guidance is expected to be approximately 5.9Moz, including 5.6Moz from the company’s Tier 1 portfolio.
“With these significant achievements and a solid start to the year, we remain firmly on track to meet our 2025 guidance, continuing on our journey towards creating the world’s leading gold and copper portfolio for the benefit of our shareholders,” Palmer said.
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