Newmont president and chief executive officer Tom Palmer has described 2024 as “transformational”, citing the company’s revitalised Tier 1 portfolio as the main highlight.
The US gold giant produced 1.9 million attributable ounces of gold during the December 2024 quarter, bringing Newmont’s total 2024 gold production to 6.8 million attributable gold ounces.
A total of 5.7 million attributable gold ounces came from Newmont’s refreshed Tier 1 portfolio of assets.
In February 2024, Newmont announced its plans to divest mines and projects it doesn’t consider to be ‘Tier 1’ assets.
Newmont defines a Tier 1 asset as an operation with “(more than) 500,000 gold equivalent ounces per year consolidated, (an) average all-in sustaining cost per ounce in the lower half of the industry cost curve, and a mine life (greater than) 10 years in countries classified in the A and B rating ranges of Moody’s, S&P and Fitch”.
In January 2025, Newmont sold all of the mines it set out to divest. These include:
The divested mines and projects are expected to generate up to $US4.3 billion ($6.7 billion) in total proceeds for Newmont.
“(The year) 2024 was a transformational year for Newmont, as we focused on the integration of the Newcrest portfolio, divestment of our non-core assets, and transitioning the business onto a stable operating and investment platform,” Palmer said.
“We have deliberately streamlined Newmont into the world’s best collection of Tier 1 gold assets, with a strong foundation of operational and financial performance.”
During 2024, Newmont generated $US6.3 billion in cash from operating activities, including $US2.5 billion during the December quarter, and $US8.7 billion in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the full-year.
The company declared a $0.25 per share dividend for the December quarter, delivering $1.1 billion in total dividends to shareholders in 2024. Newmont also produced $US2.9 billion in free cash flow for 2024, including a record $US1.6 billion in the December quarter.
“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.
Newmont’s 2025 production guidance is expected to be approximately 5.9 million gold ounces, including 5.6 million ounces from the company’s Tier 1 portfolio.
“This year we are focused on continuing to improve the business across our safety, costs, and productivity performance,” Palmer said.
“Looking to 2025 and beyond, our priorities are clear: maximise the potential of our Tier 1 portfolio, meet our commitments, return capital, and drive long-term value for our shareholders.”
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