Newmont reports solid second-quarter results

22nd July 2021

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Bullion major Newmont has posted adjusted net income of $670-million in the second quarter of the year – an increase on the preceding quarter and prior-year period.

The June quarter results compare with adjusted net income of $594-million in the first quarter of 2021 and $261-million in the second quarter of 2020.

Revenue increased 30% from the prior year quarter to $3.07-billion, helped by higher average realised metal prices and higher sales volumes.

Production at 1.45-million ounces was slightly below the 1.46-million ounces of the first quarter, but up 15% on the prior-year quarter, owing to higher production from sites that were placed into care and maintenance in response to Covid-19 in 2020.

Gold all-in sustaining costs improved 6% to $1 035/oz from the prior-year quarter primarily owing to care-and-maintenance costs in the prior year, partially offset by higher sustaining capital spend.

Newmont delivered free cash flow of $578-million and the company declared a second-quarter dividend of $0.55 a share.

“Our performance and disciplined approach to capital allocation allowed Newmont to declare a second quarter dividend of $0.55 per share, whilst we continue to reinvest in our business through our most profitable projects,” said CEO Tom Palmer.

The company last week announced that it had approved the Ahafo North project, in Ghana, with capital spend estimated at between $750-million and $850-million.

Newmont is also spending between $850-million and $950-million on the Tanami Expansion 2, in Australia.

“As we move into our next 100 years of mining, we remain focused on delivering value to all of our stakeholders from our world-class portfolio of long-life, responsibly managed assets located in top-tier jurisdictions,” said Palmer.

Edited by Creamer Media Reporter

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