Newmont (NYSE: NEM) performed significantly better in the third quarter than expected by the market. The gold producer reported earnings per share of $1.71 (consensus: $1.44) and revenue of $5.52 billion (consensus: $5.27 billion). Net income increased by 95% year-over-year to $1.8 billion. The main drivers were higher gold production and efficiency gains across the global portfolio.
Newmont Increases Earnings and Cash Flow
Behind the headlines is primarily the strong cash generation: Newmont generated a free cash flow of $1.6 billion in Q3 – already the fourth consecutive quarter with more than $1 billion. Operating cash flow increased by 39% to $1.65 billion. According to company information, around 1.4 million attributable
At the same time, sales grew by 20% compared to the same period last year (Q3 2024: $4.6 billion). The figures show that Newmont benefits from operational stability and economies of scale – an aspect that is regularly decisive for large producers in the gold sector.
Balance Sheet, Dividend and Capital Discipline
On the balance sheet side, Newmont reduced financial liabilities by $2 billion in the reporting period. Cash amounted to $5.6 billion at the end of the quarter; total liquidity was $9.6 billion. This underscores Newmont’s ability to act for ongoing projects and future investments.
At the same time, the group adheres to a shareholder-oriented distribution policy: The Board of Directors approved a quarterly dividend of $0.25 per share. Management also confirmed the production forecast for 2025 and referred to progress in cost and capital efficiency. For Newmont, this means: ongoing discipline in the use of funds, combined with financing the pipeline from ongoing cash flows.
Ahafo North and Project Pipeline as Next Impulses
Operationally, the focus is on the implementation of growth projects. The Ahafo North project is scheduled to reach commercial production in October, providing a boost to output from 2026. Newmont is investing in parallel in the optimization of existing locations and manages the project pipeline according to clear return and risk criteria. In summary, the company aims to combine the stability of base production with targeted expansions – an approach that is intended to cushion cash flow volatility in the gold sector in the coming years.
The combination of record-high free cash flow, confirmed guidance and the start-up of Ahafo North underscores the operative traction. For Newmont, the interplay of price environment, production volume and cost discipline remains the central lever.
Market Reaction: Profit-taking despite Strong Figures
Immediately after the presentation of the results, the Newmont share fell by 2.37%, turning early gains into losses. The price decline occurred against the background of a previous rally: Since the beginning of September, the Newmont share gained around 31% up to the high on October 16 at $98.27. At the current level, the share is still about 13% above the lows of the beginning of September – an indication that part of the quarterly strength was already priced in and investors realized profits after the lead-up phase.
For the classification, this means: The short-term price movement reflects less a deterioration of the fundamentals than the technical reaction to a clearly anticipated sentiment. With a view to the end of the year, management signals unchanged production targets and further efficiency gains – factors that are likely to shape the outlook for cash flow and balance sheet quality at Newmont.
