Newmont Corporation has announced fourth-quarter and full-year 2022 results and subsequently declared dividend for 2022 financial year, as well as its 2023 and longer-term outlook.
According to the miner, it has achieved its 2022 guidance and safely delivered on its commitments. Newmont produced 6.0 million gold ounces and 1.3 million gold equivalent ounces from copper, silver, lead and zinc; and has achieved its original production guidance range set in December 2021.
Newmont noted that its gold all-in sustaining costs were $1,211 per ounce, which was in line with the updated guidance range despite global cost pressures throughout the year. The miner has generated $1.1 billion in free cash flow after $2.7 billion of meaningful reinvestment into the business to advance its most profitable near-term projects.
Newmont iterated that it safely delivered on its commitments and remained focused on fatality risk management. Recognized as the Top Miner in the 2022, it announced 2023 Longer-Term Outlook; Underpinned by Strong Gold Production and Improving Costs.
As previously signalled, 2023 production guidance is expected to be between 5.7 and 6.3 million gold ounces; steadily improves longer-term, driven by strong production from world-class assets and an unmatched project pipeline.
“Gold all-in sustaining costs are expected to be between $1,150 and $1,250 per ounce in 2023; incorporates an additional 3% of cost inflation compared to 2022, which is expected to be largely offset by Full Potential cost efficiencies.”
Newmont
It added that it will be sustaining capital spending between $1.0 to $1.2 billion in 2023; with outlook remaining steady across the five-year period. “Development capital spending of $1.2 to $1.4 billion in 2023; meaningful reinvestment to strengthen our global portfolio”.
Meanwhile, 2023 dividend pay-out range established within Industry-Leading Framework provides a sustainable base dividend of $1.00 per share; at base reserves price of $1,400 per ounce.
Incremental Dividend Pay-out
Incremental dividend pay-out of $0.40 to $0.80 per share; calibrated at $1,700 per ounce and incorporating free cash flow impacts from industry-wide inflationary pressures and a period of meaningful reinvestment.
Annualised dividend pay-out ranges from $1.40 to $1.80 per share; subject to quarterly approval by Board of Directors. Declared fourth quarter 2022 dividend of $0.40 per share; set at the midpoint of the 2023 dividend pay-out range.
Mr Tom Palmer, President and Chief Executive Officer of Newmont, said “Newmont safely delivered on our commitments in 2022 and finished the year from a position of strength, meeting our full-year production guidance and generating $4.6 billion in adjusted EBITDA and $1.1 billion in free cash flow”.
“As we look ahead to 2023 and beyond, we expect to steadily increase production and improve costs from our balanced, global portfolio of world-class assets and robust project pipeline. We remain committed to our disciplined and balanced approach to capital allocation, allowing us to maintain an investment-grade balance sheet while steadily reinvesting in the business and providing superior returns to shareholders through our industry-leading dividend framework.
“With more than 100 years of history and experience, Newmont is well-positioned to continue safely delivering industry-leading results, while remaining grounded in our values and driven by our purpose to create value and improve lives through sustainable and responsible mining.”
Mr Tom Palmer
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