Newmont Corporation has announced in its second-quarter report that they delivered a solid financial performance with an amount of $984 million in adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).
President and Chief Executive officer of the Corporation, Tom Palmer made this known in the report released where he also attributed their cash flow to the favourable gold prices.
He said,
“In the second quarter, we delivered a solid financial performance with $984 million in adjusted EBITDA and $388 million in free cash flow, both substantial increases over the prior-year quarter. Our focus remains on ensuring the health, safety and wellbeing of our workforce and neighbouring communities as we manage through the coronavirus pandemic. I am very proud of our workforce for the agility and resolve that they have demonstrated during these challenging times.”
“We safely and efficiently executed restart plans at our mines previously in care and maintenance and Newmont’s world-class portfolio is well-positioned to deliver an even stronger second half of 2020. The ongoing favourable gold price environment amplifies our free cash flow generation yet our discipline around capital allocation will not change as we continue to invest in profitable projects and provide shareholders industry-leading returns while maintaining a strong balance sheet.”
According to the report, Newmont produced 1.3 million attributable ounces of gold and 138 thousand attributable gold equivalent ounces also from co-products and generated $668 million of cash from continuing operations while safely managing the ramp up of operations.
The report also said that revenue increased 5 percent from the prior year quarter to $2,365 million primarily due to higher average realized gold prices, partially offset by lower gold sales volumes.
Moving on to their contribution towards fighting COVID-19, they revealed that they continued with their wide-ranging controls in operations and offices to put the health and safety and general well of their people and communities first. They did this through the implementation of effective quarantine and contact tracing procedures for positive cases.
The company also incurred $33 million of incremental COVID-19 specific costs for activities such as additional health and safety procedures, increased transportation and community fund contributions. They distributed $5.7 million to date from Newmont’s $20 million Global Community Support Fund focused on employee and community health, food security and local economic resilience through partnerships with local governments, medical institutions, charities and non-governmental organizations
Highlighting some of their operational achievements, the company said they
“Executed safe and efficient restart plans at all five sites previously in care and maintenance, including Cerro Negro, Yanacocha, Éléonore and Peñasquito and Musselwhite.”
They also delivered strong second quarter production despite a reduction of 300Kozs gold and 100Koz of co-product GEOs from operational downtime at sites in care and maintenance.
