Newmont Announces 2023 Performance and 2024 Forecast
Newmont finalized the acquisition of Newcrest Mining Limited on November 6, 2023, marking a significant expansion of its operations. This merger has positioned Newmont as a prominent figure in the gold industry, with enhanced capabilities in copper.
In 2023, Newmont paid out $1.4 billion in dividends to its shareholders. The company reported a production of 5.5 million ounces of gold and an additional 891 thousand gold equivalent ounces from other metals such as copper, silver, lead, and zinc. These figures align with the company's revised projections, including contributions from Newcrest's assets post-acquisition.
Financially, the company saw a gold Costs Applicable to Sales (CAS) per ounce of $1,050 and an All-In Sustaining Costs (AISC) per ounce of $1,444. It generated $2.8 billion in cash from operations but reported a net loss of $2.5 billion for the year. This loss was attributed to $1.9 billion in impairment charges, $1.5 billion in reclamation charges, and $464 million related to Newcrest transaction and integration costs. Adjusted for these items, Newmont's Adjusted Net Income stood at $1.61 per share, with an Adjusted EBITDA of $4.2 billion.
Looking ahead to 2024, Newmont has outlined its production guidance, expecting to produce approximately 6.9 million gold ounces. This forecast includes 5.6 million gold ounces from its Tier 1 assets. The company anticipates sustaining capital expenses of about $1.8 billion and development capital expenses of around $1.3 billion for the year. Key development projects include the Tanami Expansion 2, Ahafo North, Cadia Block Caves, and Cerro Negro Expansion 1. The Tanami Expansion 2 project's development capital is estimated to be between $1.7 and $1.8 billion, with commercial production targeted for the second half of 2027. Additionally, Newmont remains on course to achieve $500 million in synergies from the Newcrest acquisition by the end of 2025.
