Newmont Corporation has announced second quarter 2023 results and declared a second quarter dividend of $0.40 per share.
According to the financial statement, Newmont produced 1.24 million attributable gold ounces and 256 thousand co-product gold equivalent ounces (GEOs) from copper, silver, lead and zinc; well positioned for stronger production in the second half of the year
Reported gold Costs Applicable to Sales (CAS) of $1,054 per ounce and gold All-In Sustaining Costs (AISC) of $1,472 per ounce; impacted by lower production volumes; costs expected to decrease in the second half of the year.
Newmont indicated that it is on track to achieve full-year guidance of between 5.7 and 6.3 million ounces of attributable gold production with Gold AISC between $1,150 and $1,250 per ounce; primarily driven by increased production at Ahafo, Tanami, Cerro Negro, Akyem and the two non-managed joint ventures at Nevada Gold Mines and Pueblo Viejo.
Newmont generated $656 million of cash from continuing operations and reported $40 million of Free Cash Flow; impacted by higher sustaining and development capital spend as it continues to reinvest for the future.
It reported Net Income of $155 million, with Adjusted Net Income (ANI) of $0.33 per diluted share and Adjusted EBITDA of $910 million; prioritizing safety, long-term value and positioning for stronger second half results. Newmont ended the quarter with $2.8 billion of consolidated cash, $374 million of short-term time deposits and $6.2 billion of liquidity; reported net debt to adjusted EBITDA ratio of 0.7x,
Newmont disclosed that it entered into a definitive agreement to acquire Newcrest Mining Limited (Newcrest); and the transaction is expected to close in the fourth quarter, subject to customary conditions, including shareholder approval.
It witnessed a progress in portfolio optimisation through the deferral of the investment decision for the Yanacocha Sulfides project by at least two years.
Second Quarter Dividend Declared Within Established Framework
Board of Directors declared a dividend of $0.40 per share of common stock for the second quarter of 2023; payable on September 21, 2023 to holders of record at the close of business on September 7, 2023.
Annualised dividend payout range for 2023 of $1.40 to $1.80 per share; subject to quarterly approval by Board of Directors.
Based on a sustainable base dividend of $1.00 per share payable at base reserves price and an incremental dividend payout of $0.60 per share; second quarter dividend payout calibrated at the mid-point of the $1,700 per ounce annualised payout range.
Tom Palmer, Newmont President and Chief Executive Officer, said in the second quarter, Newmont delivered $910 million in adjusted EBITDA with a disciplined approach to running a safe and sustainable mining business to generate long-term value.
“Our business is underpinned by the industry’s strongest balance sheet and a global portfolio with the size and scale to make decisions that deliver on our strategy. We remain on track to achieve our full-year guidance, and I am proud of the prudent decisions made during the second quarter to safeguard our workforce, protect long-term value and position Newmont to deliver a strong performance in the second half of the year.”
Tom Palmer
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical proficiency.
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