10-QPeriod: Q3 FY2019

NEWMONT Corp /DE/ Quarterly Report for Q3 Ended Sep 30, 2019

Filed November 5, 2019For Securities:NEMNEMCL

Summary

Newmont Corporation (NEM) reported strong third-quarter results, driven by increased gold production and higher realized gold prices. The company benefited significantly from the formation of the Nevada Gold Mines joint venture with Barrick Gold Corporation, which contributed positively to financial performance. Net income from continuing operations attributable to Newmont stockholders was $2.23 billion ($2.71 per diluted share), a substantial increase from the prior year's loss. Adjusted EBITDA also saw a significant increase of 70% year-over-year. Financially, Newmont ended the quarter with $2.7 billion in cash and $4.8 billion in net debt, maintaining an investment-grade credit profile. The company also continued to advance its portfolio, achieving commercial production at several new projects and divesting non-core assets. The strong operational and financial performance positions Newmont favorably for continued value creation and shareholder returns.

Financial Highlights

53 data points
Beta

Revenue

$2.71B

26.2% Gross Margin

Net Income

$2.18B

80.3% Net Margin

EPS (Diluted)

$2.65

Total Assets

$40.76B

Cash & Equivalents

$2.71B

Free Cash Flow

$791.00M

Financial Statements
Beta
Revenue$2.71B
Gross Profit$711.00M
R&D Expenses$43.00M
Operating Expenses$2.25B
Operating Income$2.34B
Net Income$2.18B
EPS (Basic)$2.66
EPS (Diluted)$2.65
Shares Outstanding (Basic)820.00M
Shares Outstanding (Diluted)822.00M

Key Highlights

  • 1Substantial increase in Net Income from continuing operations attributable to Newmont stockholders ($2.23 billion vs. a loss of $161 million in Q3 2018).
  • 2Significant 70% year-over-year increase in Adjusted EBITDA to $1.08 billion.
  • 3Generated strong operating cash flow from continuing operations of $1.67 billion for the nine months ended September 30, 2019.
  • 4Announced and consummated the Nevada Gold Mines joint venture with Barrick Gold Corporation, contributing 1.65 million gold ounces in production for the quarter.
  • 5Achieved commercial production at Borden, Ahafo Mill Expansion, and Quecher Main projects.
  • 6Maintained financial strength with $2.7 billion in cash and declared a $0.14 per share dividend.
  • 7Reported a 28% increase in attributable gold production to 1.64 million ounces compared to the prior-year quarter.

Frequently Asked Questions

The primary driver of the significant improvement in net income was the gain recognized from the formation of the Nevada Gold Mines joint venture with Barrick Gold Corporation. Additionally, higher gold production and improved realized gold prices contributed to the strong financial performance.

The Nevada Gold Mines (NGM) joint venture, effective July 1, 2019, contributed positively to Newmont's results. For the third quarter, Newmont recognized a gain of $2.37 billion on its formation. NGM also contributed 1.65 million ounces of gold production during the quarter, with Newmont accounting for its 38.5% interest via proportionate consolidation.

As of September 30, 2019, Newmont held $2.7 billion in cash and cash equivalents and reported net debt of $4.8 billion. The company maintained an investment-grade credit profile, supported by its financial strength and cash generation.

Newmont highlighted several portfolio improvements including the formation of the Nevada Gold Mines joint venture, divestiture of the Nimba iron ore project, announcement of a review for the Red Lake sale, and achieving commercial production at the Borden mine, Ahafo Mill Expansion, and Quecher Main projects. They also advanced the Tanami Expansion 2 project.