The Newmont Corporation (ASX: NEM) share price is in the green on Friday following the release of the company's 2024 results.
Shares in the gold miner are currently swapping hands at $76.60 apiece, more than 2% higher from the open as investors process the numbers.
Let's see what the gold giant released.
Newmont share price rises after solid FY24 results
Key takeouts from the company's 2024 results include the following (note: All dollar figures are in USD unless otherwise stated):
- Net income of $3.4 billion, or $3.48 per share, turning around a loss of $2.5 billion from the year prior
- Adjusted operating income of $8.7 billion, up 106% year over year
- Free cash flow of $2.9 billion, with a record $1.6 billion generated in the fourth quarter alone
- Gold production tallied 6.8 million attributable ounces
- All-in sustaining cost was $1,516 per ounce, up 5% year over year
- Declared dividends of $0.25 per share in Q4
What else happened in FY24?
The Newmont share price had a fairly strong year in 2024, underscored by a soaring price for gold in global markets.
It realised an average gold price of $2,643 per ounce in Q4, a gain of $125 per ounce over the previous quarter.
Meanwhile, the all-in sustaining cost (AISC) on this price was 5% lower, settling at $1,516 per ounce.
Newmont also produced cash from operations of $6.3 billion for the year, a mammoth 129% gain over the prior corresponding period.
This was "primarily due to higher realised gold prices and higher production" during the year.
In total, Newmont produced 6.85 million attributable tonnes of gold in 2024, up 23% year over year.
Accounting for all costs and capital expenditures, the gold miner produced $2.9 billion in free cash flow (FCF), up from just $88 million the year prior. This may or may not impact the Newmont share price.
Management commentary
Tom Palmer, President and CEO, was positive about Newmont's performance last 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.
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. Our record fourth quarter gave a glimpse into the promising potential of the business and allowed Newmont to deliver record operating cash flows.
What's next for Newmont?
Newmont expects to produce 5.9 million gold ounces in 2025, a small step down from last year.
This includes 0.3 million ounces from "non-core assets", which are held for sale in the first quarter, and 5.6 million ounces from its "core Tier 1 Portfolio".
It projects an AISC of $1,630 per ounce on this. In terms of capital expenditure, Newmont plans to spend around $1.8 billion on sustaining capital for the Total Tier 1 Portfolio in 2025.
According to Palmer, the company also expects gold prices to "remain strong", which could impact the Newmont share price.
With the gold price predicted to remain strong and the proceeds from our divestiture program expected to materialize during the first half of 2025, we expect our balance sheet and liquidity remains robust.
This year we are focused on continuing to optimize the business across our safety, costs, and productivity performance. Looking to 2025 and beyond, our priorities are clear: maximize the potential of our Tier 1 portfolio, meet our commitments, return capital, and drive long-term value for our shareholders.
Newmont share price snapshot
The Newmont share price is lifting on Friday as investors process the gold miner's 2024 numbers.
Zooming out, the stock is up more than 50% in the past twelve months.
