Newmont Q1 2024 Earnings Report
Key Takeaways
Newmont reported a strong first quarter operational performance, driven by its Tier 1 gold and copper operations. The company produced 2.2 million gold equivalent ounces and generated over $1.4 billion in cash from operations before working capital changes. Newmont is on track to achieve its full-year guidance and deliver meaningful synergies and productivity improvements from the combined portfolio.
Delivered $288 million in dividends to shareholders; declared a dividend of $0.25 per share of common stock for the first quarter of 2024
Announced sale of the Lundin Gold stream credit facility and offtake agreement for $330 million, further monetizing Newmont’s non-core assets while maintaining its equity interest in Lundin Gold
Produced 1.7 million attributable gold ounces and 489 thousand gold equivalent ounces (GEOs) from copper, silver, lead and zinc; primarily driven by production of 1.4 million gold ounces from Newmont's Tier 1 Portfolio
Reported Net Income of $179 million, Adjusted Net Income (ANI) of $0.55 per share and Adjusted EBITDA of $1.7 billion for the quarter
Newmont
Newmont
Forward Guidance
Newmont's 2024 outlook includes current development capital costs and production related to the key projects of Tanami Expansion 2, Ahafo North and Cadia Block Caves.
Positive Outlook
- Tanami Expansion 2 secures Tanami’s future as a long-life, low-cost producer by extending mine life beyond 2040.
- Ahafo North expands our existing footprint in Ghana with four open pit mines and a stand-alone mill.
- Cadia Block Caves includes two existing panel caves to recover approximately 5.9 million ounces of Gold Reserves as well as 1.3 million tonnes of Copper Reserves.
- The expansion is expected to increase average annual gold production by approximately 150 to 200 thousand ounces per year for the first five years
- Ahafo North is the best unmined gold deposit in West Africa with approximately 4.1 million ounces of Reserves and 1.3 million ounces of Measured, Indicated and Inferred Resources
Challenges Ahead
- Operations at Cerro Negro are currently suspended as a full investigation is conducted following the tragic fatalities of two members of the Newmont workforce on April 9, 2024.
- Operations are temporarily suspended at Telfer, one of Newmont's non-core assets, as further work is completed to remediate the safe operation of the tailings storage facility.
- As a result of the identification of required overbreak and underbreak remediation, commercial production for the Tanami project is now expected in the second half of 2027.
- Total capital costs for Tanami are now estimated to be between $1.7 and $1.8 billion, incorporating the required remediation work.
- Newmont expects to incur a cash outflow of approximately $600 million in 2024 and $700 million in 2025, primarily related to the construction of two new water treatment plants and post-closure management at Yanacocha.