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Newmont
🇺🇸 NYSE:NEM
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Jun 30, 2020

Newmont Q2 2020 Earnings Report

Newmont delivered solid financial results, demonstrating resilience and benefiting from rising gold prices.

Key Takeaways

Newmont Corporation reported solid second quarter 2020 financial results, with attributable gold production of 1.26 million ounces. The company generated $668 million in cash from continuing operations and $388 million in Free Cash Flow. Revenue increased to $2,365 million due to higher average realized gold prices.

Produced 1.26 million attributable ounces of gold and 138 thousand attributable gold equivalent ounces from co-products.

Generated $668 million of cash from continuing operations and $388 million of Free Cash Flow.

Reported $3.8 billion of consolidated cash with $6.7 billion of liquidity.

Declared second quarter dividend of $0.25 per share.

Total Revenue
$2.37B
Previous year: $2.26B
+4.8%
EPS
$0.32
Previous year: $0.12
+166.7%
Gold Produced
1.26M
Gold Sold
1.2M
Avg Gold Price
$1.72K
Gross Profit
$779M
Previous year: $404M
+92.8%
Cash and Equivalents
$3.81B
Previous year: $1.83B
+108.4%
Free Cash Flow
$388M
Total Assets
$39.9B
Previous year: $37B
+7.8%

Newmont

Newmont

Newmont Revenue by Geographic Location

Forward Guidance

Newmont reaffirmed its 2020 production outlook and provided additional details on its regional and site-level guidance.

Positive Outlook

  • 2020 attributable gold production remains at approximately 6.0 million ounces.
  • Expects to produce approximately 1.0 million gold equivalent ounces from co-products.
  • Gold CAS has been lowered to $760 per ounce.
  • Progressing the majority of its development and sustaining capital projects, including Tanami Expansion 2.
  • Ramping up drilling programs and preparing to restart Greenfields activities.

Challenges Ahead

  • Total 2020 capital expenditure is expected to be approximately $1.4 billion due to reductions in non-essential activities and changes to the development capital schedule for Tanami Expansion 2, which defers some expenditure to 2021.
  • Newmont's 2020 exploration and advanced project spend has been lowered to approximately $350 million as all Greenfield programs were suspended and infill drilling programs were on hold at operations in care and maintenance.
  • Cerro Negro production and cost outlook reflects the Covid-related constraints on advancing mine development to access to higher-grade ore originally planned for the fourth quarter of 2020.
  • Revised 2020 outlook includes the impacts from Peñasquito, Éléonore and Musselwhite being temporarily placed into care and maintenance.
  • The Company is currently ramping up drilling programs and preparing to restart Greenfields activities as soon as local restrictions are lifted in areas of Africa, Australia and South America.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Newmont