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Jun 30, 2022
Newmont Q2 2022 Earnings Report
Newmont delivered solid production and free cash flow results, while updating full-year guidance.
Key Takeaways
Newmont Corporation announced solid second quarter results, producing 1.5 million attributable ounces of gold and generating $514 million in free cash flow. The company updated its full-year guidance to 6.0 million ounces of attributable gold production and reaffirmed its original guidance of 1.3 million gold equivalent ounces from co-products.
Produced 1.5 million attributable ounces of gold and 330 thousand attributable gold equivalent ounces (GEO) from co-products.
Generated $1.0 billion of cash from continuing operations and $514 million of Free Cash Flow.
Reported gold Costs Applicable to Sales (CAS) of $932 per ounce and All-In Sustaining Costs (AISC) of $1,199 per ounce.
Adjusted Net Income (ANI) of $0.46 per share and Adjusted EBITDA of $1,149, impacted by increasing costs and declining metal prices.
Newmont
Newmont
Forward Guidance
Newmont provided updated 2022 outlook due to impacts on gold production estimates in the first half of the year, as well as the continued impact from inflationary pressures on costs. Newmont's updated 2022 outlook includes 6.0 million ounces of attributable gold production and 1.3 million gold equivalent ounces from copper, silver, lead and zinc.
Positive Outlook
- Newmont's updated 2022 outlook includes 6.0 million ounces of attributable gold production.
- Newmont's updated 2022 outlook includes 1.3 million gold equivalent ounces from copper, silver, lead and zinc.
- The company has a $1 billion share repurchase program to be used opportunistically in 2022, with $475 million remaining.
- The company ended the quarter with $4.3 billion of consolidated cash and $7.3 billion of liquidity.
- Interest expense is expected to be $200 million, a reduction of $25 million following the timely refinancing of our 2022 and 2023 notes in December of last year.
Challenges Ahead
- Revised outlook for attributable gold production includes negative impacts from operational challenges at Ahafo.
- Revised outlook for attributable gold production includes negative impacts from a transition to a leach-only operation at CC&V.
- Revised outlook for attributable gold production includes negative impacts from challenges from a competitive labor market, primarily in Canada and Australia.
- The revised outlook includes the impact from lower production volumes and higher direct operating costs related to labor, energy, consumables and supplies as a result of sustained inflationary pressures.
- Development capital is expected to be $1.1 billion for 2022 to incorporate delays in spending at Yanacocha Sulfides and Ahafo North.