10-QPeriod: Q1 FY2022

NEWMONT Corp /DE/ Quarterly Report for Q1 Ended Mar 31, 2022

Filed April 22, 2022For Securities:NEMNEMCL

Summary

Newmont Corporation (NEM) reported its first quarter 2022 financial results, showing a decrease in net income attributable to stockholders to $448 million ($0.56 per diluted share) from $559 million ($0.70 per diluted share) in the same period of 2021. This decline was primarily driven by lower gold sales volume, increased costs applicable to sales, a non-cash pension settlement charge, and a loss on the sale of an equity investment. Despite these headwinds, sales revenue saw a modest increase to $3,023 million from $2,872 million year-over-year, supported by higher realized metal prices across most commodities, particularly copper and zinc. Operationally, the company experienced a decrease in consolidated gold production due to lower throughput and grades, alongside higher costs applicable to sales per ounce. However, diversification into other metals like copper and zinc contributed positively. Newmont continued its strategic transactions, including the acquisition of Buenaventura's stake in Yanacocha and the sale of its interest in La Zanja. The company maintained a strong liquidity position with significant cash and cash equivalents and available credit facilities, supporting its commitment to dividends and share repurchases.

Financial Highlights

47 data points
Beta

Revenue

$3.02B

Net Income

$448.00M

14.8% Net Margin

EPS (Diluted)

$0.56

Total Assets

$39.91B

Cash & Equivalents

$4.27B

Free Cash Flow

$694.00M

Financial Statements
Beta
Revenue$3.02B
R&D Expenses$44.00M
Operating Expenses$2.22B
Operating Income$432.00M
Net Income$448.00M
EPS (Basic)$0.56
EPS (Diluted)$0.56
Shares Outstanding (Basic)793.00M
Shares Outstanding (Diluted)794.00M

Key Highlights

  • 1Net income attributable to Newmont stockholders decreased by 19.8% to $448 million in Q1 2022, compared to $559 million in Q1 2021.
  • 2Diluted EPS fell to $0.56 in Q1 2022 from $0.70 in Q1 2021.
  • 3Total sales increased by 5.2% to $3,023 million in Q1 2022, up from $2,872 million in Q1 2021.
  • 4Costs applicable to sales increased by 15.1% to $1,435 million in Q1 2022.
  • 5The company completed the acquisition of Buenaventura's stake in Yanacocha and sold its interest in La Zanja during the quarter.
  • 6Consolidated gold production decreased by 8% year-over-year.
  • 7Newmont maintained strong liquidity with $4,272 million in cash and cash equivalents and $3,000 million in undrawn revolving credit facility capacity at the end of Q1 2022.

Frequently Asked Questions

The decrease in net income was primarily driven by lower gold sales volume, higher costs applicable to sales, a non-cash pension settlement charge of $130 million, and a loss recognized on the sale of the La Zanja equity method investment. These factors were partially offset by higher realized metal prices and lower income tax expense.

Total sales increased by 5.2% to $3,023 million in the first quarter of 2022, up from $2,872 million in the same period of 2021. This increase was mainly due to higher realized prices for gold, copper, and zinc, which more than compensated for lower sales volumes in gold and silver.

In the first quarter of 2022, Newmont completed the acquisition of Compañia de Minas Buenaventura S.A.A.'s 43.65% noncontrolling interest in Minera Yanacocha S.R.L. (Yanacocha), increasing its ownership to 95%. The company also sold its 46.94% ownership interest in Minera La Zanja S.R.L. to Buenaventura. Additionally, Sumitomo exercised its option to require Yanacocha to repurchase its 5% interest, which is expected to close in Q2 2022, leading to Newmont holding 100% ownership in Yanacocha.

Newmont maintained a strong liquidity position with $4,272 million in cash and cash equivalents and $3,000 million in available credit facility capacity as of March 31, 2022. The company continues to focus on its disciplined cash allocation strategy, which includes self-funding development projects, debt reduction, and returning cash to shareholders through dividends and share repurchases.