Newmont has reported a robust performance for the first quarter of 2024, producing 2.2 million gold equivalent ounces and generating over $1.4 billion in operational cash flow before changes in working capital. Tom Palmer, President and CEO of Newmont, highlighted the company’s strong portfolio and operational efficiency as key factors supporting their 2024 full-year guidance.
In the first quarter, Newmont delivered $288 million in dividends to its shareholders, corresponding to a dividend of $0.25 per share. The company also announced the sale of its Lundin Gold stream credit facility and offtake agreement for $330 million, a move to monetize non-core assets while retaining an equity interest in Lundin Gold.
Production figures included 1.7 million ounces of attributable gold and 489 thousand gold equivalent ounces from copper, silver, lead, and zinc. Notably, 1.4 million gold ounces were produced from Newmont's Tier 1 portfolio.
Financial performance showed a Net Income of $179 million, with an Adjusted Net Income (ANI) of $0.55 per share and Adjusted EBITDA of $1.7 billion for the quarter. Cost metrics were reported with gold Costs Applicable to Sales (CAS) per ounce at $1,057 and All-In Sustaining Costs (AISC) per ounce at $1,439. The Tier 1 portfolio specifically reported lower CAS and AISC per ounce, at $1,000 and $1,378 respectively.
The company generated $776 million in cash from operating activities, net of working capital changes, and reported Free Cash Flow of $217 million after accounting for a stamp duty payment related to the Newcrest transaction. Capital reinvestment during the period totaled $850 million, directed towards sustaining current operations and advancing high-return projects.
Newmont has realized $105 million in synergies from its Newcrest acquisition to date and remains on track to achieve $500 million in annual synergies by year's end. The company also continues to progress toward its 2024 guidance for production, costs, and capital expenditure, with full-year production expected to be weighted towards the second half.
In addition to financial and production metrics, Newmont has marked six non-core assets and one project for sale, resulting in a non-cash impairment of $485 million. The company also completed the refinancing of approximately $2 billion of debt from the Newcrest acquisition and is targeting a $1 billion debt reduction.
