The world's largest gold miner's Q2 earnings doubled more than expected

Newmont, the world's largest gold producer, recorded record free cash flow in the second quarter in spite of a year-on-year decline in gold production, helped by a strong rise in gold prices and tight cost controls.

Newmont Corporation (NYSE: NEM, TSX: NGT) reported adjusted net income of $1.60 billion, or $1.43 per diluted share, after the North American market close on Thursday, up from $834 million ($0.72 per share) in the same period last year. Equity analysts had expected net income of $1.18 per share, according to consensus expectations.

The strong performance reflects the company's average realized gold price of $3,320 per ounce, which is 40% higher than in the second quarter of 2024.

Newmont said it produced about 1.50 million ounces of gold between April and June, down about 7 percent from a year earlier.

In addition to the rise in gold prices, the company succeeded in driving down operating costs, with all maintenance costs (AISC) falling to $1,593 per ounce, down 4% from Quarter 1.

"On a cost-per-ounce basis, the decline was primarily driven by a $81 million decrease in non-core portfolio and continuing capital expenditures across the core portfolio," the company said in its earnings report.

Newmont CEO Tom Palmer said in a prepared statement: "Newmont had a strong second quarter, producing about 1.50 million ounces of attributable gold and generating record quarterly free cash flow of $1.70 billion.This underscores the strength of our world-class portfolio and the results of rigorous execution of our stated objectives since the beginning of the year. "

As the cash pile continues to grow, the company plans to continue to reward shareholders. Newmont said in the report that the board has approved an additional $3 billion share repurchase program, after the previous $1 billion repurchase was completed, while maintaining a dividend of $0.25 per share.

Newmont has produced 3 million ounces of gold through the first half of this year, and Palmer said the company is still on track to meet its full-year production guidance.

Daily chart of spot gold, source: Internet

according toAohuiAccording to platform data, as of 11:59 Beijing time on July 25, spot gold was quoted at $3,359.04 per ounce.