10-QPeriod: Q1 FY2021

NEWMONT Corp /DE/ Quarterly Report for Q1 Ended Mar 31, 2021

Filed April 29, 2021For Securities:NEMNEMCL

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 Statements
Beta
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.

Frequently Asked Questions

The primary driver for the decrease in net income was significantly lower gains from asset and investment sales in the first quarter of 2021 compared to the same period in 2020. This was partially offset by an increase in sales driven by higher realized metal prices across most commodities.

Newmont generated $841 million in net cash from operating activities in the first quarter of 2021. This is a decrease from $936 million in the first quarter of 2020, mainly attributed to higher tax payments and changes in operating assets and liabilities.

The binding agreement to acquire the remaining 85.1% of GT Gold Corp. for an estimated $313 million signifies Newmont's strategic move to expand its portfolio and potential growth opportunities. This transaction is expected to close in the second quarter of 2021.

Newmont maintained a strong liquidity position with $5.5 billion in cash and cash equivalents and an undrawn $3 billion revolving credit facility. The company also has a disciplined cash allocation strategy focused on self-funding development projects, reducing debt, and returning capital to shareholders, with plans to acquire GT Gold Corp.