Newmont Corporation (ASX: NEM, NYSE: NEM, TSX: NGT, PNGX: NEM) maintained its position as the world’s leading gold producer in 2024. The Company delivered strong production results while executing a strategic transformation. By divesting non-core assets and consolidating its Tier 1 portfolio, Newmont strengthened its operational and financial foundation.
Figure 1: Newmont establishes Gold Dominance [Image:Timon]
Record Production and Streamlined Portfolio
The Company reported total gold production of 6.8 million attributable ounces for the year. Of this, 5.7 million ounces came from its refreshed Tier 1 portfolio.
During the December 2024 quarter, Newmont produced 1.9 million attributable ounces, underscoring its operational efficiency and commitment to high-value assets.
Newmont president and chief executive officer Tom Palmer described 2024 as a “transformational” year. The Company focused on integrating the Newcrest portfolio, divesting non-core assets, and transitioning to a stable operational platform.
Figure 2: Tom Palmer, President and CEO of Newmont Corporation
In early 2024, The company announced its decision to streamline its operations by selling mines and projects that did not meet its Tier 1 asset criteria.
Newmont defines a Tier 1 asset as:
- Producing more than 500,000 gold equivalent ounces annually
- Maintaining all-in sustaining costs in the lower half of the industry cost curve
- Operating with a mine life exceeding 10 years in countries rated A or B by Moody’s, S&P, and Fitch
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By January 2025, the company completed the sale of all planned divestitures, generating total proceeds of up to $4.3 billion ($6.7 billion).
Strategic Asset Sales and Proceeds
Newmont divested several mines and projects as part of its portfolio optimisation strategy. These transactions included:
- Telfer operation and 70 per cent stake in Havieron (Australia): Sold for $475 million
- Akyem operation (Ghana): Sold for $1 billion
- Musselwhite operation (Canada): Sold for $850 million
- Éléonore operation (Canada): Sold for $795 million
- Cripple Creek and Victor operation (US): Sold for up to $275 million
- Porcupine operation (Canada): Sold for $425 million
- Other investments: $527 million from the completed sale of assets, including the Lundin Gold stream credit facility and offtake agreement
The divestment strategy allowed Newmont to consolidate its focus on Tier 1 operations and enhance financial resilience.
Robust Financial Performance in 2024
Newmont generated $6.3 billion in cash from operating activities in 2024. The December quarter alone contributed $2.5 billion.
The Company reported:
- $8.7 billion in adjusted EBITDA for the full year
- $2.9 billion in free cash flow, including a record $1.6 billion in the December quarter
- $1.1 billion in total dividends paid to shareholders
Newmont declared a $0.25 per share dividend for the December quarter, demonstrating its commitment to shareholder returns.
“With the gold price predicted to remain strong and the proceeds from our divestiture program expected to materialise during the first half of 2025, we expect our balance sheet and liquidity to remain robust,” Palmer said.
The proceeds from asset sales will further strengthen Newmont’s financial position as it moves into 2025.
Production Guidance and Strategic Focus for 2025
Newmont’s 2025 production guidance stands at approximately 5.9 million gold ounces. The Company expects 5.6 million ounces to come from its Tier 1 portfolio.
“This year we are focused on continuing to improve the business across our safety, costs, and productivity performance,” Palmer said.
It aims to maximise the potential of its Tier 1 portfolio by optimising operational efficiency and financial returns. The Company is committed to:
- Maintaining strong safety and operational standards
- Controlling costs and improving productivity
- Strengthening shareholder returns through disciplined capital management
- Driving long-term value creation
Gold Market Trends and Industry Outlook
The gold market remained strong in 2024, supported by global economic conditions and rising demand. Gold prices averaged around $1,940 per ounce, reflecting investor confidence in the metal as a hedge against inflation and geopolitical risks.
Central banks continued to increase their gold reserves, further driving demand. Industry analysts project that gold prices will remain stable in 2025, providing a favourable environment for Newmont’s long-term strategy.
The global gold mining sector saw an increase in mergers and acquisitions, with major players restructuring portfolios to focus on high-margin assets. Newmont’s acquisition of Newcrest and its subsequent asset sales aligned with this broader industry trend.
Newmont’s Position in the Global Mining Industry
Newmont remains the world’s largest gold producer, with a strong operational and financial foundation. The Company’s disciplined approach to asset management ensures long-term stability and growth.
By consolidating its Tier 1 portfolio, Newmont reinforces its leadership in the gold sector. Its focus on cost efficiency, operational excellence, and shareholder returns sets a benchmark for the industry.
Newmont’s streamlined portfolio positions it for sustainable production and financial strength in 2025 and beyond.
