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Sep 30, 2022

Newmont Q3 2022 Earnings Report

Newmont's Q3 2022 earnings were announced, revealing stable production and progress towards full-year guidance.

Key Takeaways

Newmont Corporation reported solid third-quarter production of 1.49 million attributable ounces of gold. The company is on track to achieve full-year guidance, despite challenges from lower metal prices and timing of sales. Adjusted Net Income was $0.27 per share, and Free Cash Flow was $(63) million, impacted by one-time working capital payments and timing of concentrate shipments.

Produced 1.49 million attributable ounces of gold and 299 thousand attributable gold equivalent ounces (GEO) from co-products.

Reported gold Costs Applicable to Sales (CAS) of $968 per ounce and All-In Sustaining Costs (AISC) of $1,271 per ounce.

Generated $466 million of cash from continuing operations and reported $(63) million of Free Cash Flow.

Reported Adjusted Net Income (ANI) of $0.27 per share and Adjusted EBITDA of $850 million.

Total Revenue
$2.63B
Previous year: $2.9B
-9.0%
EPS
$0.27
Previous year: $0.6
-55.0%
Gold Produced
1.49M
Previous year: 1.45M
+2.8%
Gold Sold
1.37M
Previous year: 1.36M
+0.9%
Avg Gold Price
$1.69K
Previous year: $1.78K
-4.9%
Gross Profit
$581M
Previous year: $958M
-39.4%
Cash and Equivalents
$3.06B
Previous year: $4.64B
-34.0%
Free Cash Flow
-$63M
Previous year: $735M
-108.6%
Total Assets
$39.1B
Previous year: $39.9B
-1.8%

Newmont

Newmont

Newmont Revenue by Geographic Location

Forward Guidance

Newmont reaffirmed its 2022 outlook, projecting attributable gold production of 6.0 million ounces and co-product GEO production of 1.3 million ounces. The company anticipates gold CAS of $900 per ounce and gold AISC of $1,150 per ounce.

Positive Outlook

  • Reaffirming the latest 2022 outlook.
  • 2022E Consolidated Gold Production (Moz) 5.9
  • Consolidated Co-Product GEO Production (Moz) 1.3
  • Attributable Gold Production (Moz) 6.0
  • Gold CAS ($/oz) 900

Challenges Ahead

  • The company announced the delay of the full-funds investment decision for the Yanacocha Sulfides project in Peru.
  • Impacts from the COVID-19 pandemic
  • Russian invasion of Ukraine
  • Inflation
  • Commodities and raw materials prices

Revenue & Expenses

Visualization of income flow from segment revenue to net income