Newmont Q1 Earnings Miss On Production Decline, Says On Track To Achieve 2023 Guidance

Newmont Corp NEM reported Q1 2023 revenues of $2.68 billion, down 11% Y/Y, missing the consensus of $3.60 billion.
Gold production declined 5% Y/Y to 1.27 million ounces due to lower mill recovery and ore grade milled at Penasquito, lower production at Nevada Gold Mines and mill shutdown at Tanami.
Gold Costs Applicable to Sales (CAS) rose 15% Y/Y to $1,025 per ounce and gold All-In Sustaining Costs (AISC) rose 19% Y/Y to $1,376 per ounce.
The average realized gold price rose to $1,906 per ounce from $1,892 a year ago.
Gold equivalent ounce (GEO) production from copper, silver, lead and zinc fell 18% Y/Y to 288 thousand ounces.
Adjusted EBITDA declined to $990 million in Q1 from $1.39 billion a year ago.
Adjusted EPS of $0.40 missed the consensus of $0.43.
Capital expenditure increased 20% Y/Y to $526 million, and cash flow from operating activities fell 30% Y/Y to $481 million.
As of March 31, 2023, NEM has consolidated cash of $2.7 billion.
Dividend: NEM's Board of Directors declared a dividend of $0.40 per share for Q1, payable on June 15, 2023, to shareholders of record as on June 1, 2023
Outlook: For 2023, the company expects gold production of 5.7 million and 6.3 million ounces, with around 24% of the guidance projected to be achieved in Q2 2023 and 55% in H2 2023.
NEM expects Gold AISC between $1,150 and $1,250 per ounce for 2023.
The company expects annual dividend payments for 2023 in $1.40 - $1.80 per share range.
"We remain on track to achieve our full year guidance ranges and build upon our track record of safely delivering long-term value to all of our stakeholders through sustainable and responsible mining," said Tom Palmer, President and CEO.
Price Action: NEM shares are trading higher by 2.10% at $48.14 on the last check Thursday.

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