Newmont (NEM) Q4 FY25 earnings call: guidance and Q&A

Will CapEx increase due to Red Chris and Merian projects, and when will updates be provided?

Natascha Viljoen confirmed Red Chris update in H2 2026 and Merian later in the year. She stated current capital guidance ($1.8B sustaining, $1.3B development) is an average, and decisions on value-accretive projects will be disciplined within the capital allocation framework.

“Our capital guidance, as we have stated it, is on average, the $1.8 billion on sustaining capital, $1.3 billion on development capital. And we did say that, that would be average over a period of time.”

asked by Lawson Winder · answered by Natascha Viljoen

Have discussions occurred with Barrick regarding Fourmile and vending it into the NGM JV?

Natascha Viljoen stated current discussions with the JV partner are predominantly focused on improving NGM's performance, which is believed to be in the best interest of all shareholders.

“our current discussions have been predominantly around the improvement of the performance of Nevada. And I think a very constructive relationship to work together to improve that performance and -- which we believe would be in the best interest of all of our shareholders.”

asked by Lawson Winder · answered by Natascha Viljoen

What is the timeframe for achieving the 6 million ounce target and its main drivers?

Natascha Viljoen indicated that Newmont will provide better guidance on the production profile towards the end of 2026, following the completion of asset reviews and long-term plans.

“As we conclude this work and it builds to maturity, we will be able to give you a better guidance of what that profile would look like. And we certainly expect to be able to do that towards the end of this year.”

asked by Joshua Wolfson · answered by Natascha Viljoen

Does the framework imply 100% of excess free cash flow above the net cash target will be returned via buybacks, and if so, on what periodicity?

Natascha Viljoen confirmed the assumption is accurate, emphasizing the framework's clear expectations for cash allocation. She noted that share buybacks would be ratable, and Newmont would seek Board approval for additional buybacks after the current $2.4 billion remaining program is exhausted.

“So your assumption is accurate, and I think that's why we -- in the cash flow waterfall, we've set it out with clear expectations of where we want our cash to be, all driven to a resilient balance sheet. As noted as a reminder, share buybacks will be ratable.”

asked by Daniel Major · answered by Natascha Viljoen

What needs to be done to maximize shareholder value at NGM and how long will it take?

Natascha Viljoen welcomed the JV partner's approach to improve NGM performance. Francois Hardy added that the opportunity lies in filling the mill effectively, using a portfolio approach, blending materials, and optimizing plans across the district rather than site-by-site. The implementation is an ongoing partnership.

“the opportunity is to fill the mill effectively and use a portfolio approach to how we do that and also to blend the different types of material that is available there. I think there's also some short-term opportunity in terms of optimizing plans across the portfolio rather than on a site-by-site basis.”

asked by Tanya Jakusconik · answered by Natascha Viljoen

With high gold/copper prices, are there more opportunities for debottlenecking and brownfield expansion beyond current plans, and which assets offer such potential?

Natascha Viljoen confirmed they continuously evaluate such opportunities, focusing on low capital investment, quick-to-market projects that consider constraints like tailings capacity and processing plants. She listed Ahafo South, Ahafo North, Lihir, Tanami, Brucejack, Cerro Negro, and Cadia as assets with brownfield expansion potential.

“Ahafo South, we definitely -- and Francois mentioned in his prepared remarks on -- and we're actively pursuing that development, underground development that goes hand-in-hand with the exploration work that we're doing. Ahafo North as a brownfields expansion, there's a potential for us to basically duplicate what we've done at Ahafo North to date.”

asked by Daniel Morgan · answered by Natascha Viljoen

What is the book value of Yanacocha Sulfides and Conga after deferrals and impairments?

Natascha Viljoen stated the book value for Yanacocha Sulfides was approximately $78 million, predominantly in equipment, and for Conga, it was around $900 million.

“So on sulfides, book value was in the order of $78 million, Martin, and Conga is in the order of about $900 million.”

asked by Martin Pradier · answered by Natascha Viljoen

Why did Newmont lift its reserve price assumption to $2,000/oz and resource assumption to $1,700/oz, and is it still too conservative?

Francois Hardy explained that the $2,000/oz reserve price assumption is based on a rigorous process, aligning with the 3-year trailing average (just above 80% at the time of setting). He stated it's not considered too conservative, and mine plan assumptions are distinct from reserve/resource assumptions.

“And the one we tend to align with reasonably closely is the 3-year trailing average. And at the time of setting our 2026 gold price assumption for reserves, we were just above 80% of the 3-year trailing average, which is typically we like to be in the low 80s -- low to mid-80% of the 3-year trailing average.”

asked by Adam Baker · answered by Francois Hardy