• Gold Production: Nearly 1.7 million ounces in Q3 2024.

• Gold Equivalent Ounces: 430,000 ounces from copper, silver, lead, and zinc.

• Copper Production: 37,000 tonnes in Q3 2024.

• Cash Flow from Operations: $1.6 billion in Q3 2024.

• Free Cash Flow: $760 million in Q3 2024.

• Divestment Proceeds: Up to $1.5 billion expected from recent transactions.

• Debt Reduction: $233 million retired since last earnings call.

• Shareholder Returns: $786 million returned through share repurchases and dividends.

• Adjusted EBITDA: $2 billion in Q3 2024.

• Adjusted Net Income: $0.81 per diluted share in Q3 2024.

• Share Repurchase Program: Additional $2 billion approved, total authorization at $3 billion.

• All-in Sustaining Costs: Expected to be approximately $1,475 per ounce in Q4 2024.

• Total Liquidity: $7.1 billion at the end of Q3 2024.

• Warning! GuruFocus has detected 7 Warning Signs with NEM.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Newmont Corp (NYSE:NEM) produced nearly 1.7 million ounces of gold and 430,000 gold equivalent ounces from copper, silver, lead, and zinc in the third quarter.

• The company generated $1.6 billion in cash flow from operations and $760 million in free cash flow.

• Newmont Corp (NYSE:NEM) has advanced its noncore divestment program, expecting up to $1.5 billion in combined gross proceeds from recent transactions.

• The company achieved its $500 million synergy run rate target from its acquisition of Newcrest, focusing on G&A, supply chain, and full potential program.

• Newmont Corp (NYSE:NEM) approved an additional $2 billion share repurchase program, bringing total authorization to $3 billion, and returned $786 million to shareholders through share repurchases and dividends.

Negative Points

• Newmont Corp (NYSE:NEM) reported its fifth fatality in less than a year, highlighting ongoing safety challenges.

• The company anticipates lower than previously expected gold production from Lihir and Brucejack in 2025, impacting overall production forecasts.

• Higher sustaining capital expenditures are expected, particularly for tailings work at Cadia, which may increase costs.

• The company is experiencing significant labor cost inflation, particularly in contracted labor, impacting overall cost structure.

• Newmont Corp (NYSE:NEM) faces challenges in achieving productivity targets at certain operations, including Cerro Negro, affecting operational efficiency.

Q & A Highlights

Q: Is it realistic to assume that unit costs will moderate over time, or should we expect inflation to limit cost reductions? A: Thomas Palmer, President and CEO, explained that historically, there's a correlation between gold prices and production costs due to inflation. If gold prices ease, costs might follow. The focus is on strengthening margins across their 11 managed operations. Karyn Ovelmen, CFO, added that future cost estimates did not initially account for escalation, but current trends will influence 2025 costs.