Detailed Narrative
Safety and Operational Discipline
Natascha Viljoen emphasized safety as the highest priority, acknowledging the tragic loss of a team member at Tanami. Newmont achieved its full-year production and cost guidance for 2025, producing 5.7 million ounces of gold, 28 million ounces of silver, and 135,000 tonnes of copper. This performance was supported by cost savings and productivity initiatives, which helped mitigate pressures from a higher gold price environment and contributed to margin expansion.
Financial Strength and Capital Returns
The company generated record free cash flow of $2.8 billion in Q4 and $7.3 billion for the full year 2025. Newmont also realized $4.5 billion in proceeds from its noncore divestiture program and returned $3.4 billion to shareholders through dividends and share repurchases. An enhanced capital allocation framework was introduced, prioritizing a sustainable, growing dividend and ongoing share repurchases to reduce the share count and enhance per-share metrics.
Reserve Base and Exploration Success
Newmont's gold reserve base stands at 118 million ounces, complemented by 149 million ounces of gold resource, providing approximately 40 years of production life. The reserve price assumption was increased from $1,700/oz to $2,000/oz. Exploration efforts yielded significant results, including a new high-grade discovery in the Dozer zone at Brucejack and the addition of 2 million ounces to resource at Ahafo South in 2025, with an anticipated 4-5 million ounces of new gold reserves in 2026.
Project Execution and Development
2025 was a milestone year for projects, highlighted by the successful commissioning of Ahafo North, which will deliver an average of 300,000 ounces per year at a capital spend of approximately $950 million. Tanami Expansion 2 is on track for completion in H2 2027, with the 1.5 km concrete shaft lining complete. At Cadia, development for both panel caves continues, with PC2-3 completion expected in Q4 2026 and PC1-2 initiating its critical phase of development. The Lihir nearshore barrier mine life extension received full funds approval, unlocking over 5 million low-cost ounces and extending mine life beyond 2040.
2026 Production and Cost Outlook
Newmont's 2026 attributable production guidance is 5.3 million ounces, reflecting planned mine sequencing at Ahafo South, Peñasquito, and Cadia, as well as impacts from Boddington bushfires and lower ounces from Nevada Gold Mines and Pueblo Viejo. This year is expected to be a production trough, with growth resuming in 2027 and beyond towards a 6 million ounce annual target. All-in sustaining costs are guided at $1,680/oz (byproduct basis), benefiting from $100/oz in cost savings initiatives.
Nevada Gold Mines Joint Venture
Newmont issued a notice of default to its Nevada Gold Mines joint venture partner, Barrick, concerning operational performance and management. The company's primary focus remains on collaborating to improve the performance of these assets and generate long-term value for Newmont shareholders. Due to confidentiality provisions in the joint venture agreement, further specific comments on the notice of default were not provided.