Newmont’s average realised gold price was $1,920/oz for 1.29 million ounces of production in Q3 2023. Credit: T. Schneider/Shutterstock.com.
Gold mining giant Newmont has reported a net profit of $158m in the third quarter of this year, a 25.8% compared to $213m for the corresponding period of last year.
Earnings per share were 20 cents in the three-month period ending 30 September 2023 quarter, versus 27 cents in the prior year.
On an adjusted basis, net income was $286m or 36 cents in Q3 2023, compared with $212m or 27 cents a year ago.
The fall in earnings was due to reduced gold production, largely driven by a strike at the company’s mine in Mexico and supply chain disruptions.
The company’s average realised gold price was $1,920/oz for 1.29 million ounces (moz) of production, for the July-September quarter.
This compares with the average realised price of $1,691/oz for 1.49moz of production in Q3 2022.
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Lower production was reported at Peñasquito, Mexico and Akyem and Ahafo mines in Ghana.
The decrease in earnings was also driven by reduced production volume from a non-managed joint venture at Pueblo Viejo in the Dominican Republic.
However, this negative impact was partially balanced by higher production at its Yanacocha mine in Peru.
Lower sales volumes dragged down revenues, which fell 5% to $2.5bn despite an increase in average realised prices of gold and copper.
The company has now trimmed its 2023 gold production outlook to 5.3moz.
Newmont’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) was $933m in Q3 2023, a growth of nearly 10% from $850m last year.
Consolidated operating cash flow from continuing operations soared 115% year-on-year to $1bn.
Newmont president and CEO Tom Palmer said: “Newmont generated $1bn of cash from continuing operations during the third quarter and continued to execute on our long-term strategic plan.
“As we look ahead to the closing of the Newcrest transaction, we are excited about the long-term value it will bring to both sets of stakeholders and our combined workforce. This transaction strengthens our position as the world’s leading gold company and sets the standard in safe, profitable and responsible mining.
“We look forward to closing the transaction on 6 November and providing our first integration update on the combined business in the first quarter of 2024.”
This article was published by: suryaakella
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