Newmont Corporation
CEO : Mr. Thomas Ronald Palmer
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | -5.6% YoY | -83.6% | 3000.0% | 2023-02-23 |
Rob Atkinson says,
Peñasquito exceeds synergy goals with mining and processing improvements
- Peñasquito delivered $700 million in annual synergies through mining and processing improvements
- Gold grades expected to decline more than 20% in Q1, resulting in 25% lower gold production than 2022
- However, gold equivalent ounces will remain steady year-on-year
Yanacocha spending $300-350 million on advanced engineering and procurement
- Yanacocha delivered slightly higher production in Q4 and is expected to have higher leach recoveries in 2023
- Spending $300-350 million on advanced engineering, procurement, and camp construction for Sulfides project
Merian site delivers highest quarterly production in two years
- Merian is expected to have lower production and higher unit costs in 2023 due to planned mine sequence
- Grades expected to decline more than 15% in Q1 as site enters stripping campaign
Cerro Negro expects progressively higher tons mined and processed throughout 2023
- Production from Cerro Negro is expected to steadily increase each quarter in 2023 and extend mine life beyond 2030
- Investing $200 million in the first wave of district expansions, primarily for underground development activities
Boddington sets new production records with leading technologies
- Boddington delivered exceptional Q4 with 20% higher gold production and over 50% higher copper production
- Expect gold production to remain steady compared to 2022 despite further stripping in Boddington South pit
Tom Palmer says,
2022 Highlights
- Newmont finished the year with a strong Q4, leveraging its scale, teams, and unmatched portfolio of world-class assets to deliver industry-leading ESG, operational, and financial results.
- Newmont is well-positioned to continue leading the sector while remaining firmly grounded in its values and driven by its purpose to create value and improve lives through sustainable responsible mining.
- Newmont has remained fatality free for over four years, and it continues to maintain a clear focus on eliminating the risks that could lead to a fatality.
- Newmont experienced a 36% reduction in the number of significant potential events from the previous year.
Financial Results
- Newmont met its original guidance for production in 2022, producing an industry-leading 6 million ounces of gold and 1.3 million gold equivalent ounces from copper, silver, lead, and zinc.
- Newmont generated $4.6 billion in adjusted EBITDA and $3.2 billion in cash from continuing operations, with $1.1 billion in free cash flow after reinvesting $2.7 billion into its business last year.
- Newmont maintained a strong, flexible, investment-grade balance sheet, while continuing to reinvest in its future and providing shareholder returns of more than $1.7 billion through its established dividend framework.
Reserves and Exploration
- Newmont’s global reserve base now sits at 96 million ounces, and it has successfully replaced depletion for the year.
- Newmont reported nearly 600 million ounces of silver reserves and 16 billion pounds of copper reserves, providing natural exposure to a metal of growing importance, reducing carbon emissions.
- Exploration has always been and continues to be a core competency at Newmont. It is a critical component of its long-term strategy.
2023 Outlook
- Newmont is positioned to safely deliver on its commitments in 2023.
- Newmont’s capital allocation strategy includes investing in its existing world-class portfolio, continuing to advance its two key projects, and executing on sustainable, responsible growth opportunities.
- Newmont expects to maintain its current quarterly dividend in 2023, and it remains committed to returning cash to shareholders while maintaining a strong balance sheet.
Proposed Combination with Newcrest
- Newmont’s CEO will provide comments on the proposed combination with Newcrest at the end of the call.
Q & A sessions,
Expected Impact on NEM Stock’s Movement
- Newmont expects to produce around 6 million ounces of gold at an all-in sustaining cost of around $1,200 an ounce in 2023.
- Exploration and advanced project spend will be around $500 million, and highest development capital spend in a generation at around $1.3 billion.
- Newmont has taken a conservative view of gold price for 2023 and assumed $1,700 an ounce.
- Newmont anticipates gold production this year will be weighted 55% to the second half, driven by Ahafo, Tanami, Peñasquito and Cerro Negro.
- Newmont expects to deliver strong gold production and improving unit costs over the next five years, bringing the all-in sustaining cost to around $1,000 to $1,100 per ounce by 2025, supported by the industryâs most robust, balanced and diverse portfolio of operations and projects.
No bad stock 