10-KPeriod: FY2023

NEWMONT Corp /DE/ Annual Report, Year Ended Dec 31, 2023

Filed February 29, 2024For Securities:NEMNEMCL

Summary

Newmont Corporation reported a net loss of $2.52 billion, or $3.00 per diluted share, for the year ended December 31, 2023. This loss was primarily driven by a significant increase in reclamation and remediation expenses, impairment charges, costs associated with the acquisition and integration of Newcrest Mining Limited, a labor strike at Peñasquito, and lower production at the Akyem mine. Despite these challenges, the company benefited from higher average realized prices for gold, silver, and copper. The company also highlighted its strong financial position, ending the year with $3.0 billion in cash and approximately $6.1 billion in liquidity. Newmont also announced plans to divest six non-core assets and one development project, signaling a strategic focus on optimizing its portfolio. The successful integration of Newcrest is a key focus for management, aimed at realizing anticipated synergies and cost savings, while managing the inherent risks and complexities of integrating such a large acquisition.

Financial Highlights

52 data points
Beta

Revenue

$11.81B

Net Income

-$2.49B

-21.1% Net Margin

EPS (Diluted)

$-2.97

Total Assets

$55.51B

Cash & Equivalents

$3.00B

Free Cash Flow

$2.75B

Financial Statements
Beta
Revenue$11.81B
R&D Expenses$200.00M
Operating Expenses$13.51B
Operating Income-$2.52B
Net Income-$2.49B
EPS (Basic)$-2.97
EPS (Diluted)$-2.97
Shares Outstanding (Basic)841.00M
Shares Outstanding (Diluted)841.00M

Key Highlights

  • 1Net loss from continuing operations attributable to Newmont stockholders was $(2,521) million, or $(3.00) per diluted share, a decrease of $2,062 million from the prior year.
  • 2Adjusted Net Income was $1,324 million, or $1.57 per diluted share, a decrease of $0.28 per diluted share from the prior year.
  • 3Adjusted EBITDA was $4,215 million, a decrease of 7% from the prior year.
  • 4Net cash provided by operating activities of continuing operations was $2,754 million, a decrease of 14% from the prior year.
  • 5Free cash flow was $88 million, a significant decrease from $1,067 million in the prior year.
  • 6The company completed its business combination transaction with Newcrest Mining Limited on November 6, 2023, for a total non-cash consideration of $13,549 million.
  • 7Newmont ended the year with $3.0 billion of consolidated cash and approximately $6.1 billion of liquidity.

Frequently Asked Questions

Newmont reported a net loss from continuing operations attributable to stockholders of $(2,521) million, or $(3.00) per diluted share, a decrease from the prior year primarily due to higher reclamation and remediation costs, impairment charges, costs related to the Newcrest acquisition and integration, the Peñasquito labor strike, and lower production at Akyem, partially offset by higher average realized prices for gold, silver, and copper.

Newmont completed its acquisition of Newcrest Mining Limited on November 6, 2023, for $13,549 million in a stock transaction. This significant integration is expected to enhance Newmont's global portfolio, production capacity, and geographic diversity, though it also brings integration challenges and costs. The company is focused on realizing synergies and optimizing the combined asset base.

Net cash provided by operating activities from continuing operations decreased by 14% to $2,754 million in 2023 compared to 2022. Free cash flow significantly decreased to $88 million in 2023 from $1,067 million in 2022, primarily due to the Peñasquito labor strike and lower sales, impacted by the timing of the Newcrest acquisition and integration costs, and lower production at Akyem, partially offset by higher average realized metal prices.

Following the Newcrest acquisition and a review of its global portfolio, Newmont's Board of Directors approved a program to divest six non-core assets and one development project. These assets, including Akyem, CC&V, Éléonore, Porcupine, Musselwhite, and Telfer, met the accounting requirements to be presented as 'Held for Sale' in the first quarter of 2024, indicating a strategic move to focus on core, value-generating assets.