Up 119% this year, Newmont shares dip despite record US$1.6 billion free cash flow

Newmont produced 1.4 million ounces of gold over the September quarter.

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Key points

  • Newmont Corp reported a robust Q3 with an 18.8% increase in adjusted net income to $1.9 billion. 
  • The miner benefited from a higher average realised gold price of $3,539 per ounce and bolstered its balance sheet with $640 million from asset sales.
  • CEO Tom Palmer highlighted cost-saving initiatives and improved guidance, as he prepares to retire with Natascha Viljoen stepping in as CEO in 2026.

After opening in the green, Newmont Corp (ASX: NEM) shares are edging lower in early trade.

Shares in the $150 billion S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $133.03. In morning trade on Friday, shares are changing hands for $131.56 apiece, down 1.1%.

For some context, the ASX 200 is up 0.2% at this same time.

This follows the release of Newmont's third-quarter results (Q3 2025).

Here are the highlights.

(*Note, all figures below in US dollars unless otherwise specified.)

Newmont shares slip despite earnings surge

It was a strong quarter for the miner, with adjusted net income of $1.9 billion, up 18.8% from Q2 2025.

Newmont shares should also be getting a lift with the company reporting a 10% quarter-on-quarter increase in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to $3.3 billion.

Over the three months, Newmont produced 1.4 million gold ounces. That was down 4% from the prior quarter, with management pointing to lower gold grades and planned shutdowns at several of its mines for driving the slowdown.

Newmont also produced 35 thousand tonnes of copper during the quarter, primarily from its core managed operations.

As you'd expect, Newmont shares have been catching plenty of tailwinds from the fast-rising gold price. In Q3, the miner achieved an average realised gold price of $3,539 per ounce, an increase of $219 per ounce from Q2.

And the balance sheet got an added boost from the company's receipt of net cash proceeds totalling around $640 million from asset and equity sales. That includes Newmont's sale of its shares in Orla Mining and Discovery Silver, the receipt of the Akyem contingent payment, and the sale of the Coffee project.

The ASX 200 gold miner is also catching attention after reporting record third-quarter free cash flow of $1.6 billion.

Adding a bit of icing to the cake, management declared an unfranked quarterly dividend of 25 US cents per share.

What did management say?

Commenting on the results that have yet to sustainably lift Newmont shares today, CEO Tom Palmer said:

Newmont delivered a robust third quarter performance, producing approximately 1.4 million attributable gold ounces and generating a third-quarter record of $1.6 billion in free cash flow, marking the fourth consecutive quarter with over $1 billion in free cash flow.

As for the ASX 200 gold miner's cost-cutting efforts, Palmer added:

We are making significant progress on the cost savings initiatives announced at the beginning of the year, enabling us to meaningfully improve our 2025 guidance for several cost metrics, while maintaining our outlook for production and unit costs in a rising gold price environment.

Palmer is preparing to retire at the end of the year. Natascha Viljoen will assume the role of CEO at the beginning of 2026.

With today's intraday dip factored in, Newmont shares are up 119% since 2 January.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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