- Strong Free Cash Flow & Shareholder Returns: Generated $7.3B free cash flow in 2025, returning $3.4B to shareholders via dividends and buybacks, with a 4% quarterly dividend increase.
- Production & Reserve Strength: Produced 5.7M oz gold in 2025; reserves of 118M oz gold (40 years of production) with $2,000/oz price assumption, up from $1,700.
- 2026 Guidance & Cost Efficiency: AISC of $1,680/oz gold at $4,500 gold price, $100/oz savings from inflation mitigation, and $230M cost cuts via debt retirement.
- Capital Allocation Priorities: $1.8B sustaining capital and $1.3B development spend in 2026, with $1.1B annual dividend and $5B+ minimum cash balance for resilience.
- Exploration & Growth Projects: $525M in 2026 exploration spend, plus $1.3B invested in Tanami expansion (targeting $1.7ā1.8B total) and brownfield opportunities like Ahafo, Lihir, and Brucejack.
Operational Highlights
Newmont's operational performance was a key driver of its financial success, with the company producing 5.7 million ounces of gold, 28 million ounces of silver, and 135,000 tonnes of copper in 2025. The company's gold reserve base stands at 118 million ounces, supported by an additional 149 million ounces of gold resource, representing approximately 40 years of production life. Newmont's cost applicable to sales has remained constant year-on-year, demonstrating the company's ability to manage costs effectively.
Guidance and Outlook
For 2026, Newmont expects attributable production of 5.3 million ounces, with all-in sustaining costs expected to be approximately $1,680 per ounce. The company expects to invest about $1.4 billion in development capital and $525 million in exploration and advanced project spend. Newmont's capital allocation priorities remain focused on maintaining financial strength, reinvesting in the business, and returning capital to shareholders. The company's enhanced capital allocation framework prioritizes sustaining capital and dividend payments, followed by development capital and balance sheet targets, and finally, share repurchases.
Valuation and Investor Appeal
Newmont's shares are trading at a P/E Ratio of 18.85, indicating that the company's shares may be reasonably valued. The company's Dividend Yield is 0.82%, which may not be particularly attractive to income investors. However, the company's Free Cash Flow Yield is 7.75%, suggesting that Newmont has significant cash generation capabilities. With a ROIC of 21.46% and ROE of 21.98%, Newmont is demonstrating strong profitability. Overall, Newmont's world-class portfolio of long-life operations and deep pipeline of gold and copper projects positions the company for long-term success.