10-QPeriod: Q2 FY2020

NEWMONT Corp /DE/ Quarterly Report for Q2 Ended Jun 30, 2020

Filed July 30, 2020For Securities:NEMNEMCL

Summary

Newmont Corporation reported a significant increase in net income for the six months ended June 30, 2020, reaching $1.17 billion, a substantial rise from $119 million in the prior year. This improvement was driven by higher average realized gold prices and gains from asset sales, notably the Kalgoorlie, Continental Gold, and Red Lake operations. The company also managed to reduce its debt by $1.1 billion during the six-month period. Despite the overall positive financial performance, Newmont experienced operational challenges due to the COVID-19 pandemic, temporarily placing five mine sites into care and maintenance. However, operations resumed in the second quarter, with sites ramping up. The company maintained a strong liquidity position with $3.81 billion in cash and cash equivalents and significant borrowing capacity, enabling it to manage the impacts of the pandemic and continue strategic capital allocation, including dividends and share repurchases.

Financial Highlights

51 data points
Beta

Revenue

$2.37B

Net Income

$344.00M

14.5% Net Margin

EPS (Diluted)

$0.43

Total Assets

$39.88B

Cash & Equivalents

$3.81B

Free Cash Flow

$664.00M

Financial Statements
Beta
Revenue$2.37B
R&D Expenses$26.00M
Operating Expenses$1.93B
Operating Income$1.25B
Net Income$344.00M
EPS (Basic)$0.43
EPS (Diluted)$0.43
Shares Outstanding (Basic)803.00M
Shares Outstanding (Diluted)805.00M

Key Highlights

  • 1Net income attributable to Newmont stockholders surged to $1.166 billion for the six months ended June 30, 2020, compared to $62 million in the same period of 2019.
  • 2Sales increased by 22% to $4.946 billion for the six months ended June 30, 2020, driven primarily by a 15% increase in gold sales.
  • 3The company successfully reduced its debt by approximately $1.1 billion during the first six months of 2020.
  • 4Newmont reported strong cash flow from operations of $1.6 billion for the six months ended June 30, 2020, an increase from $870 million in the prior year.
  • 5The company generated free cash flow of $999 million for the six months ended June 30, 2020, a significant increase from $270 million in the prior year.
  • 6Newmont temporarily placed five mine sites on care and maintenance due to COVID-19 but resumed operations in the second quarter.
  • 7The company's liquidity remained strong, with $3.81 billion in cash and cash equivalents and $2.93 billion in borrowing capacity under its revolving credit facility as of June 30, 2020.

Frequently Asked Questions

Newmont reported a substantial increase in net income for the first six months of 2020, reaching $1.166 billion, up from $62 million in the same period of 2019. Sales also grew to $4.946 billion from $4.060 billion, driven by higher gold prices and sales volumes. The company also managed to reduce its debt and significantly increase its operating cash flow and free cash flow.

Newmont temporarily placed five mine sites into care and maintenance in response to the COVID-19 pandemic. While this led to reduced production at those specific sites, the company managed to resume operations in the second quarter and maintained a strong liquidity position. The financial impact was mitigated by higher gold prices and operational efficiencies in other areas.

Newmont significantly reduced its debt by approximately $1.1 billion during the first six months of 2020. As of June 30, 2020, the company had $3.81 billion in cash and cash equivalents and $2.93 billion in available borrowing capacity under its revolving credit facility, demonstrating a strong liquidity position to navigate economic uncertainties.