Summary
Newmont Corporation's Q3 2020 report indicates a significant decrease in net income attributable to stockholders, primarily due to the gain on the formation of Nevada Gold Mines (NGM) recognized in the prior year's quarter, coupled with lower sales volumes resulting from asset divestitures (Kalgoorlie and Red Lake) and the impact of COVID-19 on certain operations. Despite these factors, higher average realized gold prices provided a partial offset. The company generated strong operating cash flows, demonstrating resilience amidst global challenges. Liquidity remains robust, supported by substantial cash balances and available credit facilities, enabling continued focus on strategic priorities including debt management and shareholder returns.
Financial Highlights
52 data points| Revenue | $3.17B |
| R&D Expenses | $39.00M |
| Operating Expenses | $2.17B |
| Operating Income | $1.86B |
| Net Income | $839.00M |
| EPS (Basic) | $1.04 |
| EPS (Diluted) | $1.04 |
| Shares Outstanding (Basic) | 803.00M |
| Shares Outstanding (Diluted) | 806.00M |
Key Highlights
- 1Net income attributable to Newmont stockholders decreased to $839 million ($1.04 per diluted share) from $2,178 million ($2.66 per diluted share) in the prior year's comparable quarter.
- 2Sales increased by 17% year-over-year to $3,170 million, driven by higher average realized prices for gold, silver, lead, and zinc, partially offset by lower sales volumes across most metals.
- 3Costs applicable to sales decreased by 9% to $1,269 million, mainly due to lower ounces sold and operational efficiencies, partly offset by increased care and maintenance costs related to COVID-19.
- 4The company generated $3.2 billion in net cash from operating activities for the nine months ended September 30, 2020, a significant increase from $1.66 billion in the prior year period.
- 5Total liquidity at September 30, 2020, stood at $7.76 billion, comprising $4.83 billion in cash and cash equivalents and $2.93 billion in available credit facilities.
- 6Newmont's Board of Directors increased the quarterly dividend to $0.25 per share in Q2 2020 and announced a further increase to $0.40 per share in Q4 2020, reflecting confidence in the company's financial position and cash flow generation.
- 7The company reported $92 million in 'Other expense, net' for the quarter, including $32 million in COVID-19 specific costs, settlement costs, and asset impairments.