Newmont (NEM.N) reported fourth-quarter earnings that beat Wall Street’s forecast as a gold price rally helped offset lower production. The gold miner’s shares rose about 2 percent in after-hours trading to $127.96 after it said it would spend $1.4 billion on assets it acquired from Newcrest.
Gold has been rising to new records recently, supported by prospects of interest rate cuts by the US, rising geopolitical tensions, and economic volatility. The average price of gold was around $4,135 per ounce during the last quarter of 2025, which was around 56% higher than that of the same period in the previous year.
The average price was around $4,216 per ounce, which was around 60% higher than that of the same period in the previous year, even as gold production fell by around 24% to 1.45 million ounces. Newmont explained that gold production fell as it was part of the company’s plan to sequence operations across its mines in Peñasquito, Ahafo South, Yanacocha, Brucejack, and Cadia.
The company has also decided to invest $1.4 billion to advance near-term development projects, which include Cadia Panel Caves, Tanami Expansion 2, and the feasibility study on Red Chris. The Australian projects and Red Chris in Canada were part of Newmont’s $17 billion acquisition of Newcrest in 2023.
Newmont has also planned to spend around $1.95 billion on sustaining capital, which would focus on critical work related to tailings facilities at Cadia and Boddington to extend mine life across Newmont’s portfolio.
“Operational improvement is a top priority for us, and our teams on the ground are continuously supporting Nevada Gold Mines,” CEO Natascha Viljoen replied to Reuters’ question.
The company also expects that it would produce fewer gold ounces this year, around 5.3 million ounces, as opposed to 5.89 million ounces that were produced last year. Newmont also reported that it has earned $2.52 on an adjusted basis per share, which is higher than analysts’ average estimate of $2.00, according to LSEG.
