Newmont (NEM) Q3 2024 earnings summary

Executive summary

• Produced 1.7 million ounces of gold and 430,000 gold-equivalent ounces in Q3 2024, generating $1.6 billion in operating cash flow and $760 million in free cash flow.

• Net income rose to $922 million ($0.80/share), with adjusted net income at $936 million ($0.81/share), driven by the Newcrest acquisition and higher gold prices.

• Advanced non-core asset divestments, including Telfer, Havieron, and Akyem, expected to deliver up to $1.5 billion in gross proceeds.

• Returned $786 million to shareholders through dividends and share repurchases; authorized an additional $2 billion share repurchase program.

• Achieved $500 million synergy run rate from the Newcrest acquisition, driven by G&A, supply chain, and operational improvements.

Financial highlights

• Q3 2024 revenue was $4.6 billion, with adjusted EBITDA of $1.97 billion and adjusted net income of $0.81 per share.

• Free cash flow reached $760 million, with cash and cash equivalents at $3.0 billion and total liquidity of $7.1 billion.

• Gold AISC for Q3 was $1,611/oz, with costs applicable to sales per gold ounce at $1,207.

• Net debt to adjusted EBITDA ratio was 0.9x as of September 30, 2024.

• Q3 2024 average realized gold price was $2,518/oz, up from $1,920/oz in Q3 2023.

Outlook and guidance

• Q4 2024 guidance: attributable gold production of 1.8 million ounces, gold CAS of $1,050/oz, and AISC of $1,475/oz.

• Full-year production guidance reaffirmed; 2025 gold production from core portfolio expected to be about 5.6 million ounces.

• Sustaining capital spend at Cadia expected to remain elevated due to critical tailings work, with annual sustaining capital around $1.8 billion over the next few years.

• Development capital spend for Q4 expected at $320 million, with an average of $1.3 billion per year into high-return projects.

• Copper, silver, lead, and zinc production expected at 35 ktonnes, 11 Moz, 28 ktonnes, and 70 ktonnes, respectively, in Q4.