Executive Summary / Key Takeaways

• Portfolio Optimization Complete, Focus on Tier 1 Assets: Newmont has successfully concluded a significant divestment program, streamlining its portfolio to 11 managed Tier 1 gold and copper operations and three key projects. This strategic reshaping aims to enhance long-term value creation and operational efficiency.
• Record Cash Flow and Strengthened Balance Sheet: The company achieved record free cash flow of $4.486 billion for the nine months ended September 30, 2025, and a near zero net debt position, demonstrating robust financial resilience and disciplined capital allocation.
• Operational Momentum and Project Delivery: Key projects like Ahafo North have achieved commercial production, while others like Tanami Expansion 2 and Cadia Panel Caves are progressing, poised to deliver new low-cost ounces and extend mine lives in the coming years.
• Cost Discipline Amidst Inflation and Gold Price Sensitivity: Newmont is actively implementing cost and productivity improvements, reducing G&A, Exploration, and Advanced Projects guidance by approximately 15% for 2025. These efforts are crucial to offset inflationary pressures and gold price-driven increases in royalties and taxes.
• Long-Term Production and Margin Expansion: With a projected average annual production of 6 million gold ounces and 150,000 tonnes of copper over the next decade, Newmont is positioned for sustainable production and margin expansion, leveraging its diversified asset base and technological advancements.

A New Era for the World's Leading Gold Producer

Newmont Corporation, established in 1916 and headquartered in Denver, Colorado, stands as the world's foremost gold company, uniquely positioned within the S&P 500 Index and Fortune 500 list. Its enduring commitment to responsible mining is underscored by consistent inclusion in the Dow Jones Sustainability Index-World since 2007 and recognition as a top gold miner by the S&P Global Corporate Sustainability Assessment. This legacy of leadership and sustainability forms the bedrock of its current strategic evolution.

The company's journey has been marked by significant transformations, particularly over the last decade under the leadership of outgoing CEO Tom Palmer. A pivotal moment was the acquisition of Newcrest Mining, which expanded Newmont's footprint and brought in key assets like Cadia and Lihir. Following this expansion, Newmont embarked on an ambitious portfolio optimization program in February 2024, divesting six non-core assets and the Coffee development project. This strategic rationalization, largely completed by October 2025, has sharpened the company's focus on a core set of 11 managed Tier 1 assets and three projects in execution. This move is designed to enhance accountability, simplify operations, and maximize value from a globally diversified portfolio that includes gold, copper, silver, lead, and zinc.

The mining industry currently benefits from robust demand and strong pricing for gold, driven by geopolitical uncertainties and its enduring role as a store of value for individuals, institutional investors, and central banks. Concurrently, copper demand is experiencing a surge, fueled by the accelerating growth of AI and data centers, as well as broader electrification trends. Newmont's strategic emphasis on both gold and copper positions it favorably to capitalize on these powerful market tailwinds.

Technological Edge and Operational Excellence

Newmont's operational strategy is underpinned by a commitment to technological differentiation and continuous innovation, which are critical to maintaining its competitive edge and driving efficiency across its vast portfolio. These advancements are not merely incremental but are foundational to unlocking the long-term potential of its assets.

A core technological differentiator is the patented injection leaching technology employed at its Yanacocha operations. This innovative process significantly enhances gold recovery from leach pads, a crucial benefit as the mine transitions from oxide ore mining to residual gold leaching. While specific quantitative metrics on the percentage increase in recovery or cost advantage are not publicly detailed, the technology's application directly contributes to extending the economic life of existing resources and optimizing extraction from lower-grade materials.

Beyond specialized leaching, Newmont is integrating advanced operational technologies across its global sites. At Boddington, the deployment of an autonomous haul fleet has yielded a 10% uplift in productivity, demonstrating the tangible benefits of automation in large-scale mining. This not only improves efficiency but also enhances safety by removing personnel from hazardous environments. Similarly, the company is leveraging advanced underground mining techniques, such as block caving at Cadia and Red Chris, and sophisticated shaft equipping at Tanami. These methods are essential for accessing deep, high-grade ore bodies efficiently and safely, ensuring long-term resource extraction.

Furthermore, Newmont is implementing improved water management and mine design strategies at operations like Lihir and Red Chris. At Lihir, better drainage and water management around haul roads have led to higher mine productivity, allowing the company to optimize its fleet and reduce contractor footprint. These efforts, while seemingly incremental, collectively contribute to a more robust and sustainable operational framework.

For investors, these technological advancements translate into a stronger competitive moat, improved financial performance through lower operating costs, better margins, and enhanced market positioning. By continuously investing in and deploying these technologies, Newmont aims to mitigate operational risks, optimize resource utilization, and ensure the long-term viability and profitability of its world-class assets. The strategic intent behind these initiatives is to secure a sustainable future, even as the company navigates complex geological and market conditions.

Competitive Landscape: A Tier 1 Advantage

Newmont's competitive standing in the global mining industry is formidable, largely due to its unparalleled portfolio of Tier 1 assets and a strategic focus on sustainable practices. The company's portfolio encompasses more than half of the world's Tier 1 gold operations, characterized by their extensive scale, long operational lives, and high quality—attributes that enable performance across various commodity cycles. This positions Newmont as a benchmark for responsible gold mining, with a project pipeline that is considered "the envy of our industry."

When compared to its primary direct competitors, such as Barrick Gold (GOLD), Agnico Eagle Mines (AEM), AngloGold Ashanti (AU), and Kinross Gold (KGC), Newmont exhibits distinct strengths and areas for continuous improvement. Barrick Gold, a major rival, is often recognized for its streamlined cost structure and aggressive expansion. While Newmont is competitive in gold and copper production, it may sometimes lag Barrick in the speed of execution for large-scale projects. However, Newmont's emphasis on geographic diversification and sustainable practices, particularly in regions like Australia and Ghana, offers a qualitative advantage in markets increasingly prioritizing environmental standards. Newmont's broader geographic reach for metals like copper also provides a diversified revenue stream, contrasting with Barrick's more concentrated focus.

Agnico Eagle Mines, known for its high-quality, low-cost operations in politically stable regions, presents a strong benchmark for operational efficiency. Newmont's broader geographic presence offers wider market access for multiple metals, potentially leading to more diversified revenue opportunities. However, Agnico Eagle's leaner approach often translates to stronger profitability and cash flow generation in shared markets. Newmont's strategy of integrating copper and other metals provides a comprehensive value proposition, though it may require higher R&D investment compared to Agnico Eagle's more focused model.

AngloGold Ashanti, with its technical expertise in complex mining environments, offers similar technical capabilities to Newmont. Yet, Newmont's multi-metal exposure provides a qualitative lead in product variety, enhancing its market positioning in evolving industries. Newmont's risk management through geographic spread could prove more resilient in volatile regions, though AngloGold's specialized expertise might sometimes lead to faster innovation cycles.

Kinross Gold, a mid-tier producer, is noted for its cost-effective production and agility in smaller-scale operations. Newmont's sheer scale and geographic diversity provide a significant advantage in market reach and resource access, supporting stronger growth prospects. While Kinross's nimble operations might offer cost structure benefits, Newmont's sustainable development strategy appeals to environmentally conscious stakeholders, differentiating it in the market.

Newmont's competitive advantages, or "moats," are primarily its extensive geographic diversification and a strong commitment to sustainable mining. Geographic diversification mitigates risks from regional disruptions and provides access to a broader range of resources, fostering robust growth and reliable supply. This strategy helps Newmont counter challenges from competitors by offering stability and exploiting weaknesses in less diversified players. Furthermore, its sustainable mining practices can lead to long-term cost efficiencies and recurring revenue from partnerships, appealing to environmentally focused customers and potentially securing better market share in green segments.

However, Newmont faces vulnerabilities, including exposure to geopolitical risks, as evidenced by regulatory restrictions in Argentina and legal challenges in Ghana, which can impact financial performance. Historical operational inefficiencies, particularly during integration phases, have also led to higher costs, affecting profitability and strategic execution. These vulnerabilities highlight the ongoing need for Newmont to enhance capital efficiency and operational agility to maintain competitiveness.

Barriers to entry in the mining industry, such as high capital requirements, stringent regulatory approvals, and access to proven reserves, inherently favor established players like Newmont. These barriers limit new entrants, bolstering Newmont's defensive position against emerging competitors and potentially enhancing its long-term financial performance.

Financial Performance and Strategic Execution

Newmont's financial performance in the first nine months of 2025 reflects a company in a significant transitional phase, successfully executing a strategic reshaping while capitalizing on a supportive commodity price environment. The company reported robust financial results, demonstrating the potential of its optimized portfolio.

For the nine months ended September 30, 2025, Newmont's sales reached $15,851 million, a substantial increase from the prior year, primarily driven by higher average realized gold prices. Gold sales alone accounted for $13,496 million, with copper contributing $1,033 million. This strong revenue generation translated into a significant improvement in profitability. Net income from continuing operations attributable to Newmont stockholders soared to $5,784 million, resulting in diluted earnings per share of $5.20. Adjusted net income stood at $4,881 million, or $4.39 per diluted share, while Adjusted EBITDA reached $8,935 million.

A standout achievement has been the company's cash flow generation. Newmont reported a record $6,713 million in net cash provided by operating activities of continuing operations for the nine months ended September 30, 2025. This, combined with disciplined capital management, resulted in a record annual free cash flow of $4,486 million, with one quarter still remaining. This robust cash generation underscores the quality of Newmont's world-class portfolio and its leverage to favorable gold prices.

The company's Costs applicable to sales saw a net reduction due to the impact of divestitures, which decreased costs by $939 million for the nine-month period. However, excluding these divestitures, costs increased due to higher workers' participation at Peñasquito and Yanacocha, increased third-party royalties at Peñasquito and Ahafo, and higher contracted service costs across NGM, Yanacocha, and Cadia. Interest expense, net of capitalized interest, decreased significantly due to proactive debt reduction initiatives, including a $2 billion debt tender and the full redemption of outstanding 2026 Senior Notes.

Newmont's balance sheet has been significantly strengthened. As of September 30, 2025, the company held $5.60 billion in consolidated cash and boasted $9.60 billion in total liquidity. Gross debt was reduced to $5.180 billion, resulting in a near zero net debt position. This financial resilience is further supported by $4.00 billion in available borrowing capacity on its revolving credit facility, with no outstanding borrowings. The company has actively returned capital to shareholders, executing $1.875 billion in share repurchases during the first nine months of 2025, contributing to a total of $3.3 billion since February 2024. An additional $3 billion share repurchase program was authorized in July 2025, reflecting confidence in future cash generation. The fixed common dividend of $0.25 per share for Q3 2025 remains a consistent return to shareholders.

Operationally, Newmont has made significant progress. The Ahafo North project in Ghana achieved commercial production in October 2025, expanding the company's low-cost gold production profile. At Peñasquito, gold production surged by 109% for the nine months ended September 30, 2025, driven by higher grades and throughput. The Yanacocha operations saw a 48% increase in gold production from injection leaching. The company is also making substantial investments in its development pipeline, with Tanami Expansion 2, Ahafo North, and Cadia Panel Caves having incurred $1.235 billion, $858 million, and $437 million, respectively, in development capital costs since approval.

Outlook and Strategic Trajectory

Newmont's forward-looking strategy is anchored in disciplined capital allocation, operational optimization, and leveraging its Tier 1 asset base to deliver sustainable long-term value. The company's guidance for 2025 and beyond reflects a clear roadmap for margin expansion and predictable shareholder returns.

For 2025, Newmont anticipates gold production from its go-forward Tier 1 portfolio to be around 5.6 million ounces, with an All-in Sustaining Cost (AISC) of approximately $1,620 per ounce. This AISC figure, while higher than desired, is influenced by several factors: an estimated $40 per ounce increase due to elevated sustaining capital for tailings remediation and storage capacity at Cadia, a $35 per ounce non-cash increase from a higher allocation of costs to gold at polymetallic mines (driven by a higher gold reserve price assumption), and a $44 per ounce increase linked to a 3% inflation assumption. Furthermore, for every $100 increase in the gold price above the $2,500 per ounce assumption for 2025, Newmont expects a $10 per ounce increase in AISC due to higher taxes, royalties, and profit-sharing payments. Despite these pressures, the company expects to largely offset these impacts through ongoing optimization and cost improvements. Absolute costs for G&A, Exploration, and Advanced Projects are projected to decrease by approximately 15% in 2025, a direct result of organizational streamlining.

Looking ahead to the fourth quarter of 2025, mining at Yanacocha's oxide ores is expected to conclude, with operations shifting to residual gold leaching. The newly commissioned Ahafo North mine is anticipated to contribute low-cost ounces, and higher ounces are expected from Nevada Gold Mines.

For 2026, gold production from managed operations is expected to be within the same guidance range as 2025 but towards the lower end, primarily due to planned mine sequences. This includes a lower proportion of gold from Peñasquito (transitioning to higher silver, lead, and zinc output), reduced leach production at Yanacocha, and lower gold and copper production from Cadia as Panel Caves 1 and 2 conclude and Panel Cave 2-3 ramps up. Capital spending is expected to be elevated in 2026, following a projected $200 million improvement to capital guidance in 2025, maintaining the two-year average in line with expectations. The full benefits of 2025 cost-saving initiatives are expected to be realized in 2026, though persistent elevated gold prices could partially offset these gains through increased profit-sharing and taxes.

Over the next decade, Newmont projects an average annual production of approximately 6 million ounces of gold and 150,000 tonnes of copper. This long-term outlook is supported by a robust gold reserve base of 134 million ounces (declared at a $1,700 per ounce gold price) and 170 million ounces of gold resources, along with significant copper reserves and resources. Key projects contributing to this future include:

• Ahafo North: Expected to add profitable gold production over an initial 13-year mine life.
• Boddington: Investments in stripping laybacks are projected to deliver 30% more gold starting in 2027.
• Tanami Expansion 2: Expected to provide a meaningful reduction in operating costs and increase gold production by approximately 35% beginning in 2028, with commercial production anticipated in the second half of 2027.
• Lihir: Following a period of mine configuration, an estimated 30% lift in production is expected from 2028 onwards.
• Nevada Gold Mines (NGM): The managing partner anticipates delivering approximately 20% more gold in 2027 compared to 2024.
• Red Chris Block Cave: A feasibility study is underway in 2025, positioning it as a strong candidate for the next sanctioned project.

Risks and Challenges

Despite Newmont's strong strategic positioning and financial performance, several risks and challenges warrant close attention. The company's profitability and cash flow remain highly susceptible to commodity price volatility for gold, copper, silver, lead, and zinc. A significant or prolonged decline in these prices could materially impact its financial health and the economic viability of its reserves. This sensitivity also extends to asset impairment risk, as the carrying values of its property, plant, and mine development, inventories, and goodwill are particularly vulnerable to adverse shifts in commodity price outlook.

Geopolitical and macroeconomic pressures pose ongoing threats. Global operations expose Newmont to risks from inflation, central bank countermeasures, supply chain disruptions due to global conflicts, and an evolving trade environment, including tariffs. The company's operations in various jurisdictions, while offering diversification, also expose it to country-specific risks. For instance, cash and cash equivalents denominated in Argentine peso are subject to regulatory restrictions, and legal proceedings in Ghana challenge mining lease ratifications.

Environmental liabilities represent a significant long-term commitment and potential financial burden. At Yanacocha, the ultimate water treatment costs remain uncertain, and ongoing studies could lead to material increases in reclamation obligations. Similarly, Newmont has indemnification liabilities related to divested assets like CCV and remediation obligations for sites like the Midnite mine, where future costs could increase.

Legal and regulatory challenges are a constant. Ongoing lawsuits, such as the Holt royalty obligation dispute and shareholder class action and derivative lawsuits, could result in substantial financial penalties or operational disruptions. The Australian Taxation Office's claim regarding a 2011 reorganization, with a judgment expected in Q4 2025, also presents a potential financial risk.

Operational incidents, such as the fall of ground at Red Chris in July 2025, highlight inherent safety risks in mining and can lead to operational suspensions and significant recovery efforts. Furthermore, foreign currency exchange rate sensitivity is a material risk, with a hypothetical 10% adverse movement potentially increasing Costs applicable to sales per ounce by approximately 75% for the nine months ended September 30, 2025.

Conclusion

Newmont Corporation is undergoing a profound transformation, strategically reshaping its portfolio to focus on high-quality, long-life Tier 1 assets. The successful completion of its divestment program, coupled with record-breaking free cash flow generation and a near zero net debt position, underscores a robust financial foundation and a disciplined approach to capital allocation. The company's commitment to operational excellence, driven by technological advancements like injection leaching and autonomous fleets, is enhancing productivity and positioning it for sustained margin expansion.

With a clear outlook for increased gold and copper production from its project pipeline and a strong reserve base, Newmont is well-placed to capitalize on favorable commodity market dynamics. While challenges such as geopolitical risks, inflationary pressures, and environmental liabilities persist, the company's proactive cost discipline and strategic investments are designed to mitigate these factors. As Newmont transitions under new leadership, its focus on safety, cost, and productivity, combined with an unsurpassed portfolio and technological edge, reinforces its compelling investment thesis for long-term value creation in the global mining sector.