Summary
Newmont Goldcorp Corporation (NEM) reported a significant shift in its financial and operational landscape during the second quarter of 2019. The company completed the transformative acquisition of Goldcorp Inc. on April 18, 2019, integrating its assets and operations, which contributed to a substantial increase in gold production. Concurrently, Newmont finalized the formation of the Nevada Gold Mines joint venture with Barrick Gold Corporation on July 1, 2019, consolidating its Nevada operations into a larger, jointly operated complex. These strategic moves are expected to enhance the company's scale and operational efficiencies, positioning it as the largest gold-producing complex globally. Financially, the quarter saw a considerable decrease in net income attributable to stockholders, largely due to integration costs associated with these major transactions and operational disruptions at certain mines. However, adjusted EBITDA showed a robust increase, indicating underlying operational strength. The company also maintained a strong liquidity position with substantial cash on hand, supporting its investment-grade credit profile and enabling the payment of a significant special dividend to shareholders, alongside the regular quarterly dividend.
Financial Highlights
52 data points| Revenue | $2.26B |
| Gross Profit | $331.00M |
| R&D Expenses | $32.00M |
| Operating Expenses | $2.25B |
| Operating Income | $114.00M |
| Net Income | -$25.00M |
| EPS (Basic) | $-0.03 |
| EPS (Diluted) | $-0.03 |
| Shares Outstanding (Basic) | 766.00M |
| Shares Outstanding (Diluted) | 768.00M |
Key Highlights
- 1Completed the acquisition of Goldcorp Inc. for approximately $9.5 billion, significantly expanding Newmont's asset base and geographical reach.
- 2Established the Nevada Gold Mines joint venture with Barrick Gold Corporation on July 1, 2019, creating the largest gold-producing complex globally.
- 3Reported a substantial increase in attributable gold production, up 37% year-over-year, driven by the Goldcorp acquisition.
- 4Net income attributable to Newmont stockholders decreased significantly due to integration costs and operational disruptions, but Adjusted EBITDA increased by 25% year-over-year.
- 5Generated strong operating cash flow, with net cash provided by operating activities of continuing operations increasing by 31% year-over-year.
- 6Ended the quarter with $1.8 billion in cash and cash equivalents, maintaining a strong liquidity position and an investment-grade credit profile.
- 7Returned significant capital to shareholders, including a one-time special dividend of $0.88 per share and a declared second quarter dividend of $0.14 per share.