Summary
Newmont Corporation's (NEM) first quarter 2021 results show a decrease in net income attributable to stockholders to $559 million ($0.70 per diluted share) from $822 million ($1.02 per diluted share) in the prior year period. This decline was primarily driven by significantly lower gains on asset and investment sales compared to Q1 2020, which included substantial sales of Kalgoorlie, Continental Gold, and Red Lake assets. Despite this, sales increased by 11% to $2.87 billion, driven by higher realized metal prices, particularly for gold, copper, silver, lead, and zinc. Operationally, the company generated $841 million in cash from operating activities, though this was lower than the prior year's $936 million, mainly due to higher tax payments and changes in working capital. Capital expenditures increased to $399 million for development and sustaining projects. Newmont continues to focus on its strategic priorities, including reinvesting in its portfolio, maintaining a strong balance sheet, and returning capital to shareholders through dividends and share repurchases. The company also announced a binding agreement to acquire the remaining 85.1% of GT Gold Corp. for approximately $313 million, expected to close in the second quarter of 2021.
Financial Highlights
49 data points| Revenue | $2.87B |
| R&D Expenses | $31.00M |
| Operating Expenses | $2.02B |
| Operating Income | $538.00M |
| Net Income | $559.00M |
| EPS (Basic) | $0.70 |
| EPS (Diluted) | $0.70 |
| Shares Outstanding (Basic) | 801.00M |
| Shares Outstanding (Diluted) | 802.00M |
Key Highlights
- 1Sales increased by 11% to $2.87 billion, driven by higher realized metal prices across gold, copper, silver, lead, and zinc.
- 2Net income attributable to stockholders decreased to $559 million ($0.70/share) from $822 million ($1.02/share) in Q1 2020, primarily due to lower gains from asset sales.
- 3Operating cash flow was $841 million, down from $936 million in the prior year, impacted by higher taxes and working capital changes.
- 4The company announced a binding agreement to acquire the remaining 85.1% of GT Gold Corp. for an estimated $313 million.
- 5Capital expenditures increased to $399 million, reflecting investments in development and sustaining projects.
- 6Newmont maintained a strong liquidity position with $5.5 billion in cash and cash equivalents and a $3 billion revolving credit facility.
- 7All sites were operational, except for Cerro Negro which is focused on returning to full capacity while managing COVID-19 impacts.