Newmont (NEM) Q2 2024 earnings summary

Executive summary

• Delivered strong Q2 2024 operational and financial results, with net income of $857 million and adjusted EBITDA of $2.0 billion, maintaining trajectory to meet 2024 guidance for production, costs, and capital spend.

• Advanced safety initiatives and addressed operational suspensions at Cerro Negro and Telfer, with remediation and safety system reviews underway.

• Progressed four key commitments: safety, sustainability, portfolio optimization, and shareholder returns, including $539 million returned to shareholders in Q2.

• Achieved $205 million in synergies from the Newcrest acquisition to date, targeting $500 million annual synergies by end of 2025.

• Advanced major projects such as Ahafo North, Tanami Expansion 2, and Cadia Block Caves, with commercial production milestones on track.

Financial highlights

• Q2 2024 revenue was $4.4 billion, with adjusted EBITDA of $2.0 billion and adjusted net income of $0.72 per diluted share.

• Free cash flow improved to $594 million in Q2, up from $(74) million in Q1, driven by higher gold prices and operating cash flow.

• Attributable gold production was 1.61 million ounces in Q2, with average realized gold price at $2,347/oz.

• Costs applicable to sales were $1,152/oz; all-in sustaining costs rose to $1,562/oz, up from $1,439/oz in Q1.

• Ended Q2 with $2.6 billion in cash and $6.8 billion in total liquidity; net debt to pro forma adjusted EBITDA at 1.0x.

Outlook and guidance

• On track to achieve full-year 2024 guidance for production, costs, and capital spend, with higher production and free cash flow expected in H2, especially Q4.

• Full-year attributable gold production expected at 6.93 million ounces; gold CAS forecast at $1,050/oz and AISC at $1,400/oz.

• Copper production guidance at 152 ktonnes, copper CAS at $5,080/tonne, and copper AISC at $7,380/tonne.

• Adjusted tax rate for 2024 projected at 34% with sustaining and development capital spend of $1.55 billion and $2.3 billion, respectively.

• Portfolio optimization program underway to divest six non-core assets and a development project, with proceeds expected by March 2025.