Newmont Corp (NEM) Q4 2024 Earnings Call Highlights: Record Cash Flow and Strategic Divestments ...
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Newmont Corp (NYSE:NEM) exceeded its production guidance by delivering 6.8 million ounces of gold and over 150,000 tonnes of copper in 2024.
The company generated a record free cash flow of $1.6 billion in the fourth quarter, driven by strong gold prices and higher sales volumes.
Newmont Corp (NYSE:NEM) successfully completed its divestment program, selling six non-core operations, which is expected to result in $2.5 billion in cash proceeds.
The company maintained a strong balance sheet with over $3.6 billion in cash and $7.7 billion in liquidity, while retiring $1.4 billion in debt.
Newmont Corp (NYSE:NEM) returned $2.3 billion to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder returns.
The integration of acquired assets like Cadia and Lihir faced challenges, requiring significant investment to realize their full potential.
All-in sustaining costs are expected to rise to $1,620 per ounce in 2025 due to sustaining capital investments and macroeconomic factors.
The company is undergoing an investment cycle that will keep sustaining capital at elevated levels over the next few years.
Newmont Corp (NYSE:NEM) is carrying unacceptably high G&A costs, which are expected to decrease as the company transitions to a smaller portfolio of managed operations.
The company provided only one-year guidance for 2025, focusing on stabilizing the business, which may leave investors seeking more long-term visibility.
Warning! GuruFocus has detected 4 Warning Signs with NEM.
Q: Can you discuss the recent debt reduction and divestments, and how they impact your gearing and debt targets going forward? A: Karen Sullivan, CFO: Our capital allocation strategy remains unchanged. We aim to maintain a strong balance sheet with around $3 billion in cash and debt below $8 billion. We are steadily funding our cash-generative projects with $1.8 billion in sustaining capital and $1.3 billion in development capital. We also continue to return capital to shareholders through dividends and share repurchases.
Q: What is the status of your growth projects, and when can we expect updates on them? A: Tom Palmer, CEO: Our focus is on delivering the three projects currently in execution with a $1.3 billion spend. We have exciting projects in the pipeline, such as Red Chris and Yanacocha sulfides, which are undergoing feasibility studies and permitting. We aim to bring these projects online once we complete our current commitments.
Q: Can you explain the difference between your reserve price assumption and your cost guidance? A: Tom Palmer, CEO: We set our reserve price based on a rigorous annual process considering the three-year trailing average price and analyst forecasts. Our cost guidance reflects current operational realities, including significant investments in sustaining capital and macroeconomic factors. We aim to reduce costs and improve productivity to align with our Tier 1 asset portfolio.
Q: Why are your G&A costs expected to be high in 2025, and how will they change in the future? A: Tom Palmer, CEO: Our G&A costs are currently elevated due to the integration of Newcrest and ongoing divestments. As we complete these processes and reduce our portfolio to 11 managed operations, we expect G&A costs to decrease significantly, aligning with our streamlined operations.
Q: What is your approach to providing guidance, and will you return to longer-term forecasts? A: Tom Palmer, CEO: After a year of transformation, our focus is on stabilizing the business and delivering high-confidence guidance for 2025. We are working to understand the full potential of our portfolio and will provide more detailed guidance for 2026 and beyond once we have a clearer picture.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
What Makes The Hershey Company (HSY) a Stable Food Dividend Stock?
The Hershey Company (NYSE:HSY) is included among the 10 Best Food Stocks with Dividends. A close-up of hands deftly moulding a bar of chocolate. The Hershey Company (NYSE:HSY) is a well-known consumer staples company primarily recognized for its confections and snacks. While the company has broadened its product range to include items like popcorn and pretzels, chocolate remains one of its core offerings. Seen as an affordable indulgence, Hershey's chocolate continues to be highly popular, driving steadily increasing sales over time. The Hershey Company (NYSE:HSY) recently revealed it will increase prices for the second time in just over a year, attributing the hike to ongoing high cocoa costs that will lead to a double-digit rise in candy prices. While cocoa prices have dropped from their record high of $12,000 per metric ton, they still trade above $8,000 per metric ton. Many analysts expect these elevated prices to persist in the near term, largely due to last year's adverse weather conditions in Western Africa. The Hershey Company (NYSE:HSY) is also a strong dividend payer, having raised its payouts for 15 consecutive years. The company offers a quarterly dividend of $1.37 per share and has a dividend yield of 2.93%, as of July 27. While we acknowledge the potential of HSY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25 minutes ago
- Yahoo
General Mills (GIS): A Food Dividend Stock Worth Watching
General Mills, Inc. (NYSE:GIS) is included among the 10 Best Food Stocks with Dividends. A worker in a production facility packaging arbitrary food products, reflecting the company's commitment to comprehensive production standards. The company's top priority for fiscal 2026 is to revive organic sales growth driven by volume. To achieve this, it plans to increase investments in consumer value, product innovation, brand building, and new offerings— all guided by its established experience framework. A key highlight includes the national rollout of Blue Buffalo's fresh pet food line, expected in late 2025. In addition, the company aims to deliver strong cost savings through its Holistic Margin Management program and enhance efficiency through a global transformation initiative, freeing up more resources to support growth. General Mills, Inc. (NYSE:GIS) reported mixed earnings in fiscal Q4 2025, with revenues of $4.56 billion, down 3.3% from the same period last year. However, the company's cash position remained strong. The company generated $2.9 billion in operating cash flow, which amounted to 126% of after-tax earnings, while free cash flow represented 97% of adjusted after-tax earnings. Dividend payments declined by 2% to $1.3 billion, primarily due to a reduced average number of shares outstanding. On June 25, General Mills, Inc. (NYSE:GIS) declared a 1.7% hike in its quarterly dividend to $0.61 per share. This was the company's fourth consecutive year of dividend growth. In addition, it has paid regular dividends to shareholders for 126 years in a row. The stock has a dividend yield of 4.78%, as of July 27. While we acknowledge the potential of GIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: READ NEXT: and Disclosure: None.
Yahoo
25 minutes ago
- Yahoo
McDonald's (MCD) Financial Health and Dividend Stability for Food Investors
McDonald's Corporation (NYSE:MCD) is included among the 10 Best Food Stocks with Dividends. A cook in a busy kitchen assembling cheeseburgers for orders. McDonald's Corporation (NYSE:MCD) has evolved significantly since its peak in the mid-20th century, making ongoing efforts to stay current in a rapidly changing restaurant landscape. Despite some recent softness in sales, the company has managed to remain relevant. It's also favored by investors for its reliable dividend, having raised its payout every year since the mid-1970s— earning it Dividend King status. With a payout ratio near 60% of earnings, the company is well-positioned to sustain its dividend. McDonald's Corporation (NYSE:MCD) is prioritizing digital platforms, delivery services, and drive-thru operations to drive future sales growth. By enhancing its mobile app, expanding its loyalty program, and teaming up with third-party delivery providers, the company is working to lead in the delivery space while streamlining the ordering experience for customers. On July 23, McDonald's Corporation (NYSE:MCD) declared a quarterly dividend of $1.77 per share, which was in line with its previous dividend. The company has been growing its payouts for 48 consecutive years, which makes it one of the best food stocks with dividends. The stock has a dividend yield of 2.37%, as of July 27. While we acknowledge the potential of MCD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: READ NEXT: and Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
