Summary
Newmont Corporation's first quarter 2023 results show a decrease in sales and net income compared to the same period in 2022, primarily driven by lower average realized prices for most metals (excluding gold) and reduced sales volumes for most metals (excluding copper). These factors, coupled with higher costs applicable to sales due to global inflation, led to a decrease in net income attributable to Newmont stockholders from $448 million in Q1 2022 to $351 million in Q1 2023. Despite the revenue decline, the company maintained a strong liquidity position with significant cash and cash equivalents and an undrawn revolving credit facility. Capital expenditures remain focused on development projects like Tanami Expansion 2 and Ahafo North. Management highlights ongoing efforts to improve safety, ESG practices, and operational efficiency, while navigating macroeconomic pressures such as inflation and supply chain disruptions. The company also updated its reportable segments to align with its revised operating strategies.
Financial Highlights
47 data points| Revenue | $2.68B |
| R&D Expenses | $35.00M |
| Operating Expenses | $2.17B |
| Operating Income | $339.00M |
| Net Income | $351.00M |
| EPS (Basic) | $0.44 |
| EPS (Diluted) | $0.44 |
| Shares Outstanding (Basic) | 794.00M |
| Shares Outstanding (Diluted) | 795.00M |
Key Highlights
- 1Sales decreased by 11% to $2.68 billion in Q1 2023 from $3.02 billion in Q1 2022, impacted by lower metal prices and volumes.
- 2Net income attributable to Newmont stockholders decreased to $351 million ($0.44 per diluted share) in Q1 2023, down from $448 million ($0.56 per diluted share) in Q1 2022.
- 3Costs applicable to sales increased by 3% to $1.48 billion, primarily due to global inflation affecting labor, materials, and energy costs.
- 4The company maintained strong liquidity, with $2.66 billion in cash and cash equivalents and an undrawn $3 billion revolving credit facility as of March 31, 2023.
- 5Capital expenditures for development projects like Tanami Expansion 2 and Ahafo North are ongoing, with $526 million invested in property, plant, and mine development during the quarter.
- 6Free Cash Flow turned negative at $(45) million in Q1 2023, compared to $252 million in Q1 2022, mainly due to lower operating cash flow and higher capital expenditures.
- 7The company updated its segment reporting structure in January 2023 to better reflect its operational organization and management's review process.