On October 23, 2024, Newmont Corp (NEM, Financial) released its 8-K filing detailing its third-quarter 2024 financial results. Newmont, the world's largest gold miner, has a diverse portfolio that includes 17 wholly or majority-owned mines and interests in two joint ventures across the Americas, Africa, Australia, and Papua New Guinea. The company is expected to produce approximately 6.9 million ounces of gold in 2024.
Performance Overview
Newmont Corp reported a net income of $924 million, translating to $0.80 per diluted share, which fell short of the analyst estimate of $0.85 per share. The company generated $760 million in free cash flow and reported an adjusted net income of $936 million or $0.81 per diluted share. Despite the earnings miss, Newmont's revenue reached $4.67 billion, aligning closely with the estimated $4.672 billion.
Strategic Divestments and Shareholder Returns
Newmont announced agreements to sell the Akyem mine in Ghana and the Telfer mine along with a 70% interest in the Havieron project in Western Australia, expecting up to $1.5 billion in combined gross proceeds. The company has already received $527 million from other investment sales in 2024. Additionally, Newmont repurchased 9.4 million shares at an average price of $53.16, totaling $500 million, and declared a dividend of $0.25 per share for the third quarter.
Production and Cost Analysis
Newmont produced 1.7 million attributable gold ounces, with a significant contribution from its Tier 1 Portfolio. The average realized gold price was $2,518 per ounce, an increase from the previous quarter. However, the Gold All-In Sustaining Cost (AISC) rose to $1,611 per ounce, reflecting higher costs. The company also produced 430 thousand gold equivalent ounces from copper, silver, zinc, and lead.
Financial Position and Outlook
Newmont's balance sheet remains robust with $3.0 billion in consolidated cash and a net debt to adjusted EBITDA ratio of 0.9x. The company is on track to meet its 2024 production guidance, expecting to deliver 1.8 million gold ounces in the fourth quarter at an AISC of $1,475 per ounce.
We continue to make meaningful progress on our non-core divestment program with the two transactions announced in the quarter, which are expected to deliver up to $1.5 billion in combined gross proceeds," said Tom Palmer, Newmont's President and CEO.
Conclusion
Newmont Corp's third-quarter results highlight its strategic focus on divestments and shareholder returns, despite challenges in meeting earnings expectations. The company's strong cash flow generation and ongoing cost management efforts position it well for future growth and value creation in the metals and mining industry.
Explore the complete 8-K earnings release (here) from Newmont Corp for further details.
