Summary
Newmont Corporation (NEM) reported its first quarter 2024 financial results, showcasing a significant increase in sales driven by the recent acquisition of Newcrest Mining Limited and higher gold prices. Sales for the quarter surged to $4,023 million from $2,679 million in the prior year. However, net income from continuing operations attributable to Newmont stockholders decreased to $166 million ($0.15 per diluted share) from $339 million ($0.42 per diluted share) in Q1 2023. This decline was primarily due to a substantial $485 million loss recognized on assets held for sale, which were part of a portfolio optimization strategy to divest six non-core assets and a development project. The company also saw an increase in costs applicable to sales and depreciation and amortization, largely attributable to the Newcrest acquisition. Despite the lower net income, the company maintained a strong liquidity position with $6,678 million in total liquidity at the end of the quarter, and it reaffirmed its commitment to returning capital to shareholders through dividends and a new $1 billion share repurchase program. Operationally, Newmont produced 1,619 thousand gold ounces, a notable increase from 1,233 thousand in Q1 2023, reflecting the integration of Newcrest's assets and improved production at sites like Tanami. The average realized gold price rose to $2,090 per ounce from $1,906 per ounce. The company is actively managing its portfolio, with the sale of non-core assets expected to be completed within 12 months. Management highlighted the successful integration of Newcrest and the ongoing focus on operational efficiency and responsible mining practices.
Financial Highlights
50 data points| Revenue | $4.02B |
| R&D Expenses | $53.00M |
| Operating Expenses | $3.62B |
| Operating Income | $166.00M |
| Net Income | $170.00M |
| EPS (Basic) | $0.15 |
| EPS (Diluted) | $0.15 |
| Shares Outstanding (Basic) | 1.15B |
| Shares Outstanding (Diluted) | 1.15B |
Key Highlights
- 1Total sales increased by 50% to $4.02 billion in Q1 2024, largely due to the Newcrest acquisition and higher metal prices.
- 2Net income from continuing operations attributable to Newmont stockholders decreased to $166 million ($0.15/share) from $339 million ($0.42/share) in Q1 2023, impacted by a $485 million loss on assets held for sale.
- 3The company recognized a significant loss of $485 million related to the classification of six non-core assets and a development project as held for sale as part of a portfolio optimization strategy.
- 4Gold production increased to 1,619 thousand ounces from 1,233 thousand ounces in Q1 2023, with improved performance at several sites and contributions from acquired Newcrest assets.
- 5Total liquidity remained strong at $6.68 billion as of March 31, 2024, including $4.0 billion in available capacity on its revolving credit facility.
- 6A new $1 billion share repurchase program was authorized to offset dilution from stock awards and return capital to shareholders.
- 7The company declared a quarterly dividend of $0.25 per share.