10-QPeriod: Q3 FY2023

NEWMONT Corp /DE/ Quarterly Report for Q3 Ended Sep 30, 2023

Filed October 26, 2023For Securities:NEMNEMCL

Summary

Newmont Corporation reported a decrease in net income attributable to stockholders for the three months ended September 30, 2023, compared to the same period in 2022, primarily driven by the work stoppage at its Peñasquito mine due to a labor strike. This strike significantly impacted sales volumes for all metals. While average realized prices for gold and copper saw an increase, this was offset by higher reclamation and remediation expenses. For the nine-month period, the net income decrease was also attributed to lower sales volumes across most metals, impacted by the Peñasquito strike, operational adjustments at Akyem, and weather-related disruptions at Tanami. Despite these challenges, the company's cash position remains strong, and it is progressing towards the expected completion of the Newcrest acquisition in November 2023, which is anticipated to enhance its global portfolio and financial flexibility.

Financial Highlights

49 data points
Beta

Revenue

$2.49B

Net Income

$158.00M

6.3% Net Margin

EPS (Diluted)

$0.20

Total Assets

$38.08B

Cash & Equivalents

$3.19B

Free Cash Flow

$1.00B

Financial Statements
Beta
Revenue$2.49B
R&D Expenses$53.00M
Operating Expenses$2.25B
Operating Income$649.00M
Net Income$158.00M
EPS (Basic)$0.20
EPS (Diluted)$0.20
Shares Outstanding (Basic)795.00M
Shares Outstanding (Diluted)796.00M

Key Highlights

  • 1Net income attributable to Newmont stockholders decreased to $158 million ($0.20 per diluted share) for Q3 2023, down from $213 million ($0.27 per diluted share) in Q3 2022.
  • 2The Peñasquito mine experienced a work stoppage due to a labor strike throughout Q3 2023, resulting in no sales from that operation.
  • 3Total sales for Q3 2023 were $2.49 billion, a decrease from $2.63 billion in Q3 2022, primarily due to lower sales volumes.
  • 4Costs applicable to sales decreased by 11% to $1.37 billion in Q3 2023, aided by the Peñasquito shutdown, but increased at other sites due to higher costs.
  • 5Reclamation and remediation expenses increased significantly to $166 million in Q3 2023, compared to $53 million in Q3 2022.
  • 6The company's cash and cash equivalents stood at $3.19 billion as of September 30, 2023.
  • 7The acquisition of Newcrest Mining Limited is expected to be implemented in November 2023, following shareholder and court approvals.

Frequently Asked Questions

The primary driver for the decrease in net income was the work stoppage at the Peñasquito mine due to a labor strike, which led to a significant reduction in sales volumes, particularly for silver, lead, and zinc. Higher reclamation and remediation expenses also contributed to the decline, partially offset by an increase in realized gold and copper prices.

Newmont's acquisition of Newcrest Mining Limited has received approval from both Newmont and Newcrest shareholders, as well as the Australian court. The transaction is expected to be implemented in November 2023.

The labor strike at Peñasquito, which began in June 2023 and continued throughout the third quarter, led to a complete suspension of operations and sales from that mine during the period. This significantly reduced overall sales volumes and impacted production and cost metrics for the quarter and the first nine months of the year.

As of September 30, 2023, Newmont held $3.19 billion in cash and cash equivalents, with an additional $3 billion available under its revolving credit facility, indicating a strong liquidity position to manage operations and capital commitments.