Newmont Mining (NEM, Financial), the world's largest gold producer, reported better-than-expected earnings for the first quarter of 2025, driven by rising gold prices that offset declining production. The company announced a 25% increase in sales to $5.01 billion compared to $4.023 billion in the same period last year. Adjusted net income soared by 123% to $1.404 billion, with adjusted earnings per share reaching $1.25, surpassing analysts' expectations of $0.90.
The average realized gold price was $2,944 per ounce, marking a 41% increase from the previous year. However, attributable gold production decreased by 8.3% to 1.54 million ounces due to reduced contributions from non-core operations. The cost applicable to sales (CAS) was $1,227 per ounce, while the all-in sustaining cost (AISC), an industry measure of total production costs, rose by 15% to $1,651 per ounce.
Newmont's CEO, Tom Palmer, highlighted the successful divestment of non-core assets, generating up to $4.3 billion in total proceeds in the first half of 2025, with over $2.5 billion in post-tax cash proceeds. Palmer emphasized the company's commitment to achieving its 2025 targets, aiming to produce 5.9 million ounces of attributable gold at an AISC of $1,630 per ounce.
