Newmont Corporation (ASX: NEM) has announced its financial results for the second quarter of 2024, highlighting robust performance and significant shareholder returns.
The company declared a quarterly dividend of $0.25 per share.
Key Financial Highlights
- Gold Production: Newmont produced 2.1 million gold equivalent ounces, including 1.6 million attributable gold ounces and 477 thousand gold equivalent ounces from other metals such as copper, silver, lead, and zinc.
- Revenue and Cash Flow: The company generated $1.4 billion in cash from operating activities and reported $594 million in free cash flow.
- Net Income: Newmont reported a net income of $857 million, with adjusted net income (ANI) of $0.72 per share and adjusted EBITDA of $2.0 billion.
- Shareholder Returns: The company delivered $539 million in total returns to shareholders through share repurchases and dividend payments. Newmont repurchased 5.7 million shares at an average price of $43.34, totalling $250 million.
- Debt Reduction: The company reduced its nominal debt by $250 million for a cash cost of $227 million.
Operational and Strategic Developments
- Divestiture Program: Newmont has announced $527 million in proceeds from its divestiture program this year, aiming for at least $2 billion in gross proceeds from high-quality, non-core asset sales. The company expects to receive $153 million in cash proceeds in the third quarter from the monetization of Batu Hijau contingent payments.
- Production Impact: The second quarter saw a 4 per cent decrease in attributable gold production due to operational suspensions at Cerro Negro and Telfer, and lower production at Lihir and Akyem. However, this was partially offset by higher production at Porcupine, Brucejack, and Peñasquito.
- Cost Management: Gold CAS (Cost Applicable to Sales) per ounce increased by 9 per cent to $1,152, and Gold AISC (All-In Sustaining Cost) per ounce rose by 9 per cent to $1,562, primarily due to lower sales volumes and higher third-party royalties.
Newmont is on track to meet its full-year guidance for production, costs, and capital expenditure. The company anticipates a sequential increase in production in the second half of the year, particularly in the fourth quarter, driven by improved grades and throughput at several key sites.
“Newmont delivered a solid second quarter, producing 2.1 million gold equivalent ounces and generating $594 million in free cash flow,” said Tom Palmer, Newmont’s President and CEO.
“We continued to advance our divestiture program and, to date, have announced $527 million in proceeds this year. With this momentum, we completed $250 million in share repurchases and repaid $250 million in debt. As we head into the second half of the year, we remain confident in our ability to continue executing on shareholder returns, meet our full-year guidance, and deliver on our commitments.”
Newmont’s second-quarter results reflect the company’s strong operational performance and strategic focus on optimizing its portfolio and returning value to shareholders.
The company’s robust financial health and proactive management strategies position it well for continued success in the latter half of 2024.