Newmont's Q2 Earnings Outpace Estimates on Higher Gold Prices

Newmont Corporation NEM reported second-quarter 2025 earnings from continuing operations of $1.85 per share compared with 73 cents in the year-ago quarter.

Barring one-time items, adjusted earnings were $1.43 per share, up from 72 cents reported in the prior-year quarter. It topped the Zacks Consensus Estimate of $1.04 per share.

NEM’s revenues for the second quarter were $5,317 million, up 20.8% from $4,402 million reported in the prior-year quarter. The figure topped the Zacks Consensus Estimate of $4,582.5 million. The increase in the top line was primarily due to higher year-over-year realized gold prices.

Newmont’s Operational Highlights

Newmont's attributable gold production in the second quarter of 1.48 million ounces was 8.1% lower than the prior-year quarter’s figure. The figure beat our estimate of 1.42 million ounces.

Average realized prices of gold rose around 41.4% year over year to $3,320 per ounce. The figure topped our estimate of $2,953 per ounce.

The company’s costs applicable to sales (CAS) for gold were $1,215 per ounce, up 5.5% year over year. The figure lagged our estimate of $1,228 per ounce.

All-in-sustaining costs (AISC) for gold were up around 2% year over year to $1,593 per ounce. The figure missed our estimate of $1,657 per ounce.

NEM’s Financials

The company ended the quarter with cash and cash equivalents of $6,185 million, up 137.7% year over year. At the end of the quarter, the company had a long-term debt of $7,132 million, down 17.9% year over year.

Net cash from continuing operations amounted to $2,384 million in the reported quarter, up from $1,428 million in the year-ago quarter.

NEM’s board authorized an additional $3 billion share repurchase program.

Newmont’s 2025 Outlook

Newmont anticipates maintaining its expected gold production for 2025 at about 5.9 million ounces. The company also projects total CAS for gold at $1,200 per ounce and an AISC of $1,630 per ounce.
 
General and Administrative expenses are forecasted at $475 million. Reclamation and Remediation Accretion are projected at $475 million, while exploration and advanced projects expenses are predicted at $525 million.

NEM’s Price Performance

Newmont’s shares have gained 31.7% in the past year compared with a 43.9% rise in the industry.

NEM’s Zacks Rank & Key Picks

NEM currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Royal Gold, Inc. RGLD, Kinross Gold Corporation KGC and Agnico Eagle Mines AEM.

Royal Gold is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for earnings is pegged at $1.70. RGLD beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 9%. RGLD carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kinross is scheduled to report second-quarter results on July 30. The Zacks Consensus Estimate for KGC’s second-quarter earnings is pegged at 27 cents. KGC beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 16.1%. KGC currently carries a Zacks Rank #1.

Agnico Eagle is slated to report second-quarter results on July 30. The consensus estimate for AEM’s earnings is pegged at $1.66. AEM, carrying a Zacks Rank #1, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 12.3%.

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research