10-KPeriod: FY2022

NEWMONT Corp /DE/ Annual Report, Year Ended Dec 31, 2022

Filed February 23, 2023For Securities:NEMNEMCL

Summary

Newmont Corporation's 2022 10-K filing reveals a challenging year marked by a net loss of $369 million, a significant shift from the $233 million net income in 2021. This downturn was primarily driven by substantial impairment charges ($1.32 billion) related to goodwill and long-lived assets, particularly at the Cerro Negro and Porcupine operations, coupled with increased costs applicable to sales due to inflation in fuel, energy, and labor. Despite these headwinds, Newmont maintained its position as a leading gold producer, with consolidated gold production of 5.8 million ounces. The company's diversified portfolio across North America, South America, Australia, Africa, and Nevada provides some resilience. Management is focusing on optimizing capital allocation to current operations and exploring strategic options for projects like Yanacocha Sulfides. Investors should note the company's commitment to ESG practices and its progress in areas like gender diversity, though the overall financial performance in 2022 was impacted by macroeconomic factors and specific operational challenges.

Financial Highlights

52 data points
Beta

Revenue

$11.91B

Net Income

-$429.00M

-3.6% Net Margin

EPS (Diluted)

$-0.54

Total Assets

$38.48B

Cash & Equivalents

$2.88B

Free Cash Flow

$3.22B

Financial Statements
Beta
Revenue$11.91B
R&D Expenses$229.00M
Operating Expenses$11.71B
Operating Income-$459.00M
Net Income-$429.00M
EPS (Basic)$-0.54
EPS (Diluted)$-0.54
Shares Outstanding (Basic)794.00M
Shares Outstanding (Diluted)795.00M

Key Highlights

  • 1Net Loss of $369 million in 2022, a significant decline from $233 million net income in 2021, heavily impacted by $1.32 billion in impairment charges.
  • 2Consolidated gold production remained stable at 5.8 million ounces, with total sales of $11.9 billion, down 3% from $12.2 billion in 2021.
  • 3Costs applicable to sales increased by 19% to $6.47 billion, largely due to cost inflation (fuel, energy, labor) and a profit-sharing agreement at Peñasquito.
  • 4All-in sustaining costs per ounce of gold increased by 14% to $1,211, reflecting higher operating expenses.
  • 5The company completed the acquisition of the remaining non-controlling interest in Yanacocha, now owning 100% of the operation.
  • 6Delay announced for the Yanacocha Sulfides project investment decision due to challenging market conditions and inflation.
  • 7Newmont continues to emphasize ESG initiatives, including GHG emissions reduction targets and advancements in gender diversity metrics.

Frequently Asked Questions

Newmont reported a net loss of $369 million for 2022, a significant decrease from a net income of $233 million in 2021. This was primarily due to $1.32 billion in impairment charges related to goodwill and long-lived assets, as well as increased operating costs driven by inflation.

Consolidated gold production was stable at 5.8 million ounces. However, costs applicable to sales rose by 19% to $6.47 billion due to inflation in key inputs like fuel, energy, and labor, and a profit-sharing agreement at the Peñasquito mine. All-in sustaining costs per ounce of gold increased by 14% to $1,211.

Newmont completed the acquisition of the remaining interest in Yanacocha, now holding 100% ownership. The company also announced a delay in the investment decision for the Yanacocha Sulfides project due to market conditions and inflation, focusing instead on current operations and assessing project execution options.

Newmont highlights its ongoing commitment to ESG, including setting science-based greenhouse gas emission reduction targets, investing in cleaner energy solutions, and aiming for carbon neutrality by 2050. The company also reported progress in increasing female representation in senior leadership roles and noted that ESG performance is a component of executive compensation.