Newmont (NEM, Financial), the world's largest gold producer, reported its highest quarterly profit in five years despite missing Wall Street's earnings expectations. The company's net income for the third quarter was $924 million, or $0.80 per share, slightly below the anticipated $0.85 per share. Revenue stood at $4.67 billion, closely aligning with expectations of $4.672 billion.
Newmont also announced asset sales and investments projected to yield up to $1.5 billion, with this year's profit expected to reach $3.2 billion, marking a record year. The company generated $760 million in free cash flow and reported adjusted net income of $936 million, or $0.81 per share. The net income attributable to shareholders was $922 million, nearly six times higher than the same period last year.
In the third quarter, Newmont repurchased 9.4 million shares at an average price of $53.16 per share, totaling $500 million, and declared a quarterly dividend of $0.25 per share.
Last year, Newmont acquired Newcrest Mining Ltd. for approximately $15 billion, expanding its portfolio with gold and copper mines, thereby reinforcing its position as the leading global precious metal producer. This quarter, Newmont produced 1.67 million ounces of gold, surpassing its major competitor Barrick Gold (GOLD) which produced 943,000 ounces.
The company's balance sheet remains robust, with consolidated cash at $3 billion and a net debt to adjusted EBITDA ratio of 0.9x. Newmont is on track to meet its 2024 production targets, projecting to produce and deliver 1.8 million ounces of gold in the fourth quarter at an all-in sustaining cost of $1,475 per ounce.
Despite challenges in meeting earnings expectations, Newmont's third-quarter performance highlighted its strategic focus on divestiture and shareholder returns. The strong cash flow generation and ongoing cost management efforts position the company favorably for future growth and value creation within the metals and mining sector.
