10-QPeriod: Q2 FY2023

NEWMONT Corp /DE/ Quarterly Report for Q2 Ended Jun 30, 2023

Filed July 20, 2023For Securities:NEMNEMCL

Summary

Newmont Corporation (NEM) reported its second-quarter 2023 financial results, with total sales of $2.68 billion, a decrease from $3.06 billion in the prior year's comparable period. Net income attributable to stockholders was $155 million, or $0.19 per diluted share, down from $387 million, or $0.49 per diluted share, in the second quarter of 2022. The decrease in revenue and net income was primarily driven by lower sales volumes across most metals, impacted by operational challenges including a labor strike at the Peñasquito mine and lower production at Akyem and Tanami due to operational adjustments and weather events. Despite these operational headwinds, the company is progressing towards its strategic acquisition of Newcrest Mining Limited, expected to close in the fourth quarter of 2023, subject to customary approvals. Management is focusing on optimizing fund allocation and is prudently managing its liquidity, with $2.83 billion in cash and cash equivalents as of June 30, 2023. The company continues to navigate macroeconomic pressures like inflation and supply chain disruptions.

Financial Highlights

49 data points
Beta

Revenue

$2.68B

Net Income

$155.00M

5.8% Net Margin

EPS (Diluted)

$0.19

Total Assets

$38.13B

Cash & Equivalents

$2.83B

Free Cash Flow

$656.00M

Financial Statements
Beta
Revenue$2.68B
R&D Expenses$44.00M
Operating Expenses$2.32B
Operating Income$492.00M
Net Income$155.00M
EPS (Basic)$0.19
EPS (Diluted)$0.19
Shares Outstanding (Basic)795.00M
Shares Outstanding (Diluted)795.00M

Key Highlights

  • 1Total sales for Q2 2023 decreased by 12% to $2.68 billion compared to $3.06 billion in Q2 2022.
  • 2Net income attributable to Newmont stockholders decreased significantly to $155 million ($0.19/share) from $387 million ($0.49/share) year-over-year.
  • 3The planned acquisition of Newcrest Mining Limited remains on track for a Q4 2023 closing, pending shareholder and regulatory approvals.
  • 4Operational challenges, including a labor strike at Peñasquito and weather-related issues at Tanami, impacted production volumes and sales.
  • 5Cash and cash equivalents stood at $2.83 billion as of June 30, 2023, indicating sufficient liquidity.
  • 6Capital expenditures for the first six months of 2023 were $1.14 billion, reflecting investments in development projects and sustaining operations.
  • 7The company is managing inflationary pressures and supply chain disruptions through operational adjustments and cost management.

Frequently Asked Questions

The primary drivers were lower sales volumes across most metals, significantly impacted by operational challenges such as the labor strike at the Peñasquito mine, lower production at Akyem due to mine plan re-sequencing and safety improvements, and reduced production at Tanami due to severe rainfall and flooding. These factors led to a decrease in revenue and consequently, lower net income.

Newmont entered into a binding agreement to acquire Newcrest Mining Limited on May 14, 2023. The transaction is structured as a stock deal and is expected to close in the fourth quarter of 2023, subject to customary conditions, including approval by both Newmont and Newcrest shareholders, as well as regulatory approvals.

As of June 30, 2023, Newmont reported $2.83 billion in cash and cash equivalents. The company also has $3.00 billion available under its revolving credit facility, indicating a strong liquidity position to manage its operations and strategic initiatives amidst current macroeconomic conditions.

Yes, the report highlights a labor strike at the Peñasquito mine in Mexico, which led to suspended operations for a period. Additionally, wildfires in Canada temporarily impacted the Éléonore operation, and severe weather affected the Tanami mine. These events, along with ongoing inflationary pressures and supply chain concerns, represent significant operational risks.