Why Newmont Shares Are Sliding Today

Newmont Corp NEM reported Q2 2023 revenues decline of 12% Y/Y to $2.68 billion, missing the consensus of $3.88 billion, impacted by lower gold and silver sales volumes.

Gold production declined 17% Y/Y to 1.24 million ounces due to lower production at Merian, Peñasquito, Akyem, Cerro Negro, and Boddington mines.

Gold Costs Applicable to Sales (CAS) rose 13% Y/Y to $1,054 per ounce and gold All-In Sustaining Costs (AISC) rose 23% Y/Y to $1,472 per ounce.

The average realized gold price rose 7% Y/Y to $1,965 per ounce.

Gold equivalent ounce (GEO) production from copper, silver, lead and zinc fell 22% Y/Y to 256 thousand ounces.

Adjusted EBITDA declined 21% Y/Y to $0.9 billion in Q2. 

Adjusted EPS of $0.33 significantly missed the consensus of $0.58.

Capital expenditure increased 19% Y/Y to $616 million while operating cash flow from continuing operations fell 36% Y/Y to $656 million. 

As of June 30, 2023, NEM has consolidated cash of $2.8 billion.

Dividend: NEM's Board of Directors declared a dividend of $0.40 per share, payable on September 21, 2023, to shareholders of record as on September 7, 2023.

Outlook Reiterated: For 2023, the company expects gold production of 5.7 million and 6.3 million ounces and Gold AISC between $1,150 and $1,250 per ounce. 

The company continues to expect annual dividend payments for 2023 in the $1.40 - $1.80 per share range.

Also Read: Newmont Taps Former Hess Director As CFO On Heels Of $19B Newcrest Acquisition

Price Action: NEM shares are trading lower by 4.01% at $43.37 premarket on the last check Thursday.