10-QPeriod: Q3 FY2021

NEWMONT Corp /DE/ Quarterly Report for Q3 Ended Sep 30, 2021

Filed October 28, 2021For Securities:NEMNEMCL

Summary

Newmont Corporation reported a net loss of $243 million, or $0.01 per diluted share, for the third quarter of 2021, a significant decrease from a net income of $856 million, or $1.04 per diluted share, in the same period of 2020. This decline was primarily attributed to a substantial $571 million loss on assets held for sale related to the Conga mill assets, lower realized gold prices, reduced gold sales volumes, and increased reclamation and remediation charges. Despite the quarterly loss, the year-to-date results show a net income of $997 million for the first nine months of 2021, compared to $2.027 billion for the same period in 2020. The company's sales for the quarter decreased by 9% to $2.895 billion, driven by lower gold prices and volumes, although copper, silver, lead, and zinc sales saw increases. The company maintained a strong liquidity position with $4.636 billion in cash and cash equivalents at the end of September 2021.

Financial Highlights

50 data points
Beta

Revenue

$2.90B

Net Income

$3.00M

0.1% Net Margin

EPS (Diluted)

$0.00

Total Assets

$39.87B

Cash & Equivalents

$4.64B

Free Cash Flow

$1.14B

Financial Statements
Beta
Revenue$2.90B
R&D Expenses$40.00M
Operating Expenses$2.83B
Operating Income$1.17B
Net Income$3.00M
Shares Outstanding (Basic)799.00M
Shares Outstanding (Diluted)800.00M

Key Highlights

  • 1Reported a net loss of $243 million for Q3 2021, compared to a net income of $856 million in Q3 2020, largely due to a $571 million loss on assets held for sale (Conga mill assets).
  • 2Sales decreased by 9% to $2.895 billion in Q3 2021 from $3.170 billion in Q3 2020, driven by lower gold prices and sales volumes.
  • 3Year-to-date net income was $997 million for the first nine months of 2021, down from $2.027 billion in the same period of 2020.
  • 4Costs applicable to sales increased by 8% to $1.367 billion in Q3 2021 compared to $1.269 billion in Q3 2020.
  • 5Depreciation and amortization remained relatively stable at $570 million for Q3 2021, down slightly from $592 million in Q3 2020.
  • 6The company ended Q3 2021 with $4.636 billion in cash and cash equivalents, demonstrating a solid liquidity position.
  • 7Capital expenditures for the nine months ended September 30, 2021, were $1.212 billion, an increase from $904 million in the prior year's comparable period.

Frequently Asked Questions

The primary reason for Newmont's net loss of $243 million in the third quarter of 2021 was a significant non-cash loss of $571 million recognized on assets held for sale, specifically related to the Conga mill assets. This, combined with lower realized gold prices and sales volumes, and higher operating and reclamation costs, contributed to the net loss.

Newmont's sales decreased by 9% to $2.895 billion in the third quarter of 2021, compared to $3.170 billion in the third quarter of 2020. This decline was primarily driven by lower gold sales volumes and lower average realized gold prices.

As of September 30, 2021, Newmont maintained a strong liquidity position, with $4.636 billion in cash and cash equivalents. The company also had an undrawn revolving credit facility of $3 billion, providing ample financial flexibility.

While most sites returned to full operational capacity by the end of the third quarter of 2021, the pandemic had impacted operations earlier in the year, leading to temporary care and maintenance or reduced operations at some sites. The company incurred specific costs related to its COVID-19 response efforts, which were noted in its financial results.