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Jun 30, 2024
Newmont Q2 2024 Earnings Report
Newmont delivered a solid second quarter with significant free cash flow and strategic divestitures.
Key Takeaways
Newmont reported a strong second quarter in 2024, marked by significant gold equivalent ounce production and free cash flow generation. The company advanced its divestiture program, completed share repurchases, and reduced debt while maintaining confidence in meeting full-year guidance and shareholder return commitments.
Generated $594 million in free cash flow and produced 2.1 million gold equivalent ounces.
Announced monetization of Batu Hijau contingent payments, expecting $153 million in cash proceeds in Q3.
Repurchased 5.7 million shares at an average price of $43.34, totaling $250 million, and reduced nominal debt by $250 million.
Realized $100 million in synergies during the second quarter from the Newcrest acquisition, totaling $205 million to date.
Newmont
Newmont
Forward Guidance
Newmont reaffirmed its 2024 outlook, anticipating a sequential increase in production in the second half of the year, weighted towards the fourth quarter, driven by improved grades at key mines and throughput improvements.
Positive Outlook
- Full year production for 2024 is expected to be second-half weighted as previously indicated, with a sequential increase weighted towards the fourth quarter.
- The second-half weighting is expected to be driven primarily by improved grades at Peñasquito, Ahafo and Tanami, improved throughput from Lihir and Boddington and sequential improvements delivered from our non-managed joint venture operations.
- On track to deliver 2024 guidance for production, costs and capital spend.
- Expect to achieve at least $2 billion in gross divestiture proceeds from high-quality, non-core asset sales.
- Anticipating a sequential increase in production in the second half of the year, weighted towards the fourth quarter
Challenges Ahead
- Operations at Cerro Negro were suspended during the quarter following fatalities.
- Operations were suspended at Telfer due to tailings storage facility remediation.
- Lower production at Lihir due to heavy rainfall impacting mine sequencing.
- Lower production at Akyem due to lower grades from ongoing stripping campaign.
- Second quarter production was impacted by lower production at Lihir due to heavy rainfall impacting mine sequencing, as well as lower production at Akyem due to lower grades as a result of the ongoing stripping campaign.