Gold Miner Newmont Misses Q3 Earnings On Production Decline Due To Strike, Slashes FY23 Guidance

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.