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Sep 30, 2021
Newmont Q3 2021 Earnings Report
Newmont's Q3 2021 earnings were announced, revealing a challenging quarter with significant investments in projects and shareholder returns.
Key Takeaways
Newmont Corporation reported a challenging Q3 2021, marked by a net loss of $8 million, but generated $1.1 billion in cash from continuing operations and $735 million in free cash flow. The company produced 1.45 million ounces of gold and 315 thousand gold equivalent ounces. Despite the challenges, Newmont reinvested in operations and returned over $2 billion to shareholders through dividends and share buybacks.
Newmont produced 1.45 million attributable ounces of gold and 315 thousand attributable gold equivalent ounces from co-products.
The company generated $1.1 billion in cash from continuing operations and $735 million in Free Cash Flow.
Newmont declared a third quarter dividend of $0.55 per share and completed $99 million of share repurchases.
The company ended the quarter with $4.6 billion of consolidated cash and $7.6 billion of liquidity.
Newmont
Newmont
Forward Guidance
Newmont provided an updated 2021 outlook, adjusting for operational challenges and the ongoing impact of Covid-19, expecting approximately 6.0 million ounces of attributable gold production and 1.3 million gold equivalent ounces from co-products.
Positive Outlook
- The company is advancing near-term projects, including Tanami Expansion 2, Ahafo North, and the mining method change at Subika Underground.
- Newmont is progressing Yanacocha Sulfides, investing at least $500M through 2022 with a full funds decision expected in the second half of 2022.
- Newmont is delivering the gold industry’s first Autonomous Haulage System (AHS) fleet, improving safety and long-term productivity at Boddington.
- The company is maintaining wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals.
- Newmont continues to experience lower productivity as a result of Covid-related absenteeism and a tightening of the labor market in Canada.
Challenges Ahead
- Attributable gold production decreased 6 percent to 1,449 thousand ounces from the prior year quarter.
- Net loss from continuing operations attributable to Newmont stockholders was $(8) million or $(0.01) per diluted share.
- Revenue decreased 9 percent from the prior year quarter to $2,895 million.
- COVID-19 specific costs included in Other expense, net, primarily include amounts distributed from the Newmont Global Community Fund to help host communities, governments and employees combat the COVID-19 pandemic.
- Free Cash Flow decreased to $735 million primarily due to lower operating cash flow and higher capital expenditures.