Newmont Reports Strong Financial Gains in Q2 2024 Despite Operational Challenges
Newmont (TSX:NGT, NYSE:NEM) has recently released its Q2 2024 results, showcasing robust financial performance despite facing operational hurdles that impacted gold production. The US-based mining company managed to produce 1.6 million attributable gold ounces and 477,000 gold equivalent ounces from copper, silver, lead, and zinc. Although gold production saw a 4 percent decline from the previous quarter due to operational suspensions at Cerro Negro and Telfer, Newmont still achieved positive results across the board.
Financially, Newmont generated US$1.4 billion in consolidated net cash from operating activities, marking an 80 percent increase from the previous quarter. The company reported free cash flow of US$594 million and an adjusted net income of US$834 million, equivalent to US$0.72 per share. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter amounted to US$2 billion. Moreover, Newmont’s balance sheet remains strong with US$2.6 billion in consolidated cash and US$6.8 billion in total liquidity.
Since the release of its Q1 earnings report, Newmont has repurchased 5.7 million shares at an average price of US$43.34, totaling US$250 million, and reduced nominal debt by US$250 million. Looking ahead, the company anticipates a production increase in the latter half of the year, particularly in Q4. This growth is expected to be driven by higher grades and improved throughput at key sites.
Newmont’s President and CEO, Tom Palmer, expressed confidence in the company’s ability to continue executing on shareholder returns, meet full-year guidance, and deliver on commitments. Moving forward, Newmont remains dedicated to advancing key expansion projects at Tanami Expansion 2, Ahafo North, Cadia Block Caves, and Cerro Negro. The company also aims to progress its exploration activities to discover and develop new resources for long-term production sustainability.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.