Newmont Corporation (NYSE:NEM), the world's largest publicly listed gold producer, reported robust first-quarter 2025 earnings following the conclusion of the year-long portfolio optimization effort.

The company posted a net income of $1.9 billion and adjusted EBITDA of $2.6 billion, significantly surpassing the prior year's performance. Adjusted net income was $1.25 per share, aligning with analysts' expectations. Cost-wise, the company saw Gold All-In Sustaining Costs rise to $1,651 per ounce, a 13% increase due to lower production volumes and higher royalty costs.

"Following on from a robust fourth quarter performance, Newmont has delivered 1.5 million attributable gold ounces and generated a record first quarter free cash flow of $1.2 billion, demonstrating the strength of our unrivaled Tier 1 Portfolio," said Tom Palmer, Newmont's President and CEO.

Newmont's average realized gold price soared to $2,944 per ounce, driven by favorable market conditions and a $64 per ounce mark-to-market uplift on provisionally priced sales. Attributable gold production fell 19% quarter-to-quarter, reaching 1.54 million ounces, largely due to the divestiture of non-core operations like Musselwhite and Éléonore and planned mine sequencing at Boddington and Tanami.

The year-long portfolio optimization process saw the firm shed non-core assets following a $16.8 billion acquisition of Newcrest. Out of the $4.3 billion divesture program, the company received over $2.5 billion in after-tax proceeds from asset sales finalized in Q1, helping reduce debt by $1 billion and supporting capital returns, including $755 million in share repurchases and a $0.25 dividend.

Despite the drop in production, Newmont reaffirmed its full-year 2025 guidance of 5.9 million ounces of gold, with 52% of output expected in the second half. This seasonal skew is attributed to stronger contributions anticipated from Nevada Gold Mines and Pueblo Viejo, as well as the ramp-up of Ahafo North. Current quarter results, with 24% of expected annual Tier 1 production, align with this outlook.

Addressing a question on the current state of the market, Palmer noted that after completing an ambitious investment program over the last 12 months, the management is focused on delivering quality, irrespective of gold price volatility.

"We've got unit costs that are higher where they should be for a portfolio than the quality of the one we've assembled. So, we are very, very focused on delivering the safety, cost, and productivity performance that this portfolio deserves irrespective of the gold price," he explained.

Price Watch: Newmont is up 38.5% year-to-date. At the time of publication, the stock was up 2.67% in pre-market, trading at $54.57.

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