Newmont Reports Strong Q2 Financials Despite Production Challenges

Newmont (TSX:NGT,NYSE:NEM) has reported strong financial gains in its Q2 2024 results despite operational challenges affecting gold production.

The US-based mining company produced 1.6 million attributable gold ounces and 477,000 gold equivalent ounces from copper, silver, lead and zinc. Its gold production was down 4 percent from the previous quarter due to operational suspensions at Cerro Negro and Telfer.

Despite these setbacks, the company saw positive gains across the board.

Financially, Newmont generated US$1.4 billion in consolidated net cash from operating activities, an 80 percent increase from the previous quarter, and reported free cash flow of US$594 million in free cash flow. The company also reported an adjusted net income of US$834 million, translating to US$0.72 per share.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter stood at US$2 billion, while the firm’s balance sheet remains robust with US$2.6 billion in consolidated cash and US$6.8 billion in total liquidity.

Additionally, Newmont reported that since the release of its Q1 earnings report it 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.

Newmont anticipates a production increase in the latter half of the year, particularly in Q4, driven by higher grades and improved throughput at key sites.

“As we head into the second half of the year, we remain confident in our ability to continue executing on shareholder returns, meet our full year guidance and deliver on our commitments,” Newmont President and CEO Tom Palmer commented on the quarterly performance.

Looking ahead, Newmont is committed to advancing its key expansion projects at Tanami Expansion 2, Ahafo North, Cadia Block Caves and Cerro Negro, while also progressing with its exploration activities to discover and develop new resources to sustain long-term production.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.