Newmont Corp NEM reported Q3 FY23 revenue decline of 5% Y/Y to $2.49 billion, missing the consensus of $2.90 billion, impacted by lower sales volumes.
Gold production declined 13% Y/Y to 1.291 million ounces due to lower production at Peñasquito, Akyem, and Ahafo mines.
Gold Costs Applicable to Sales (CAS) rose to $1,019 per ounce from $968 per ounce, and gold All-In Sustaining Costs (AISC) rose 12% Y/Y to $1,426 per ounce.
The average realized gold price rose 14% Y/Y to $1,920 per ounce.
Adjusted EBITDA rose 10% Y/Y to $933 million in Q3. Adjusted EPS of $0.36 missed the consensus of $0.43.
Capital expenditure increased 14% Y/Y to $604 million, and operating cash flow from continuing operations increased 115% Y/Y to $1.001 billion.
As of September 30, 2023, NEM has consolidated cash of $3.2 billion.
Dividend: NEM's Board of Directors declared a dividend of $0.40 per share, payable on December 22, 2023, to shareholders of record as of November 30, 2023.
FY23 Outlook Revised: The company revised gold production outlook to 5.3 million ounces (from 5.7 million-6.3 million ounces earlier) and Gold AISC to $1,400 per ounce (from $1,150-$1,250 per ounce).
This reflects a strike at Peñasquito, and a decline in production volumes from non-managed joint ventures (Nevada Gold Mines and Pueblo Viejo) and Ahafo owing to lower throughput following the decision to operate at less than full capacity.
Related: Newmont And Mexican Union Reach Agreement To End Peñasquito Gold Mine Strike
The company continues to expect annual dividend payments for 2023 in the $1.40 - $1.80 per share range.
The company is on track to close the pending acquisition of Newcrest Mining Limited on November 6.
Price Action: NEM shares are trading lower by 0.03% at $36.75 premarket on the last check Thursday.
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