The result
Newmont reported approximately 1.3 million attributable gold ounces for the quarter and record second-quarter free cash flow of 2.2 billion dollars, declaring a dividend of 0.261 dollars per share and remaining on track for full-year guidance.
The company returned 1.9 billion dollars to shareholders through dividends and continuing buybacks. Roughly 86 per cent of quarterly free cash flow went back to holders rather than into the ground.
Return of capital versus reserve replacement
Buying back stock at a high gold price is defensible when the alternative is overpaying for development assets in a hot market. It is less defensible if reserve life is shortening at the same time.
The measure to track is not the payout ratio but reserves per share. A company that shrinks its share count faster than its reserve base is genuinely creating value; one that does the reverse is liquidating slowly and calling it discipline.
The Nevada overhang, now resolved
The subsequent settlement with Barrick over Nevada Gold Mines, which includes a 1.95 billion dollar payment from Newmont and the vending in of Mike and Fiberline, removes a long-running dispute from the story and clarifies the asset perimeter on both sides.