“Our dividend is greater than the subsequent eight opponents mixed,” CEO Tom Palmer mentioned.
Newmont elevated its September quarter dividend by 60% to US40c/share after a 79% quarterly elevate earlier this 12 months.
Its annual $1.60/share return fee interprets right into a 2.7% dividend yield of two.7% that compares with the S&P 500 Index common of 1.67%. Newmont says it has returned greater than $2.5 billion to shareholders since 2019 in dividends and buybacks.
“This was the very best quarterly monetary efficiency in Newmont’s historical past,” Palmer mentioned.
A median 30% improve in gold costs acquired throughout the quarter, to $1,913/oz, helped Newmont offset 6% decrease whole output of 1.54 million ounces.
Key operations in South America and Canada continued to ramp up after COVID-related downtime.
However excessive bullion costs helped drive document EBITDA of $1.7 billion and free money movement of $1.Three billion.
Palmer mentioned Newmont generated about $400 million of incremental free money each year for each $100 improve within the gold value above a base $1,200/ozassumption. On the present spot value its portfolio would generate greater than $19 billion in annual free money.
General, sturdy performances from Penasquito in Mexico and Musselwhite in Canada helped offset the lack of manufacturing after the sale of Crimson Lake (Canada) and Kalgoorlie (Australia) property earlier within the 12 months. Group all-in sustaining prices rose marginally to $1,020/ozon decrease output and better stripping charges at Yanacocha in Peru, Merian in Suriname, and Akyem in Ghana, and decrease openpit grades at Ahafo in Ghana.
Newmont mentioned its share of manufacturing from the Nevada Gold Mines three way partnership with Barrick Gold was 377,000ozat AISC of $904/ozwithin the quarter. Newmont’s 40-60 three way partnership with Barrick at Pueblo Viejo produced 87,000oz.
Headline revenue elevated 140% yoy to $697 million, or 86c per share, in contrast with $292 million or 36c per share a 12 months in the past, on quarterly income of $3.17 billion, up 17% yoy.
Newmont mentioned it had $4.eight billion money and $7.eight billion of liquidity on the finish of September.
Palmer reiterated the corporate’s full-year steerage at about 6Moz at common AISC of $1,015/oz.
Present-year capital expenditure of $1.Four billion is concentrated on the Tanami Growth 2 in Australia, growing for sub-level shrinkage mining at Subika in Ghana, and advancing laybacks at Boddington in Australia, and Ahafo.
Newmont shares (NSYE: NEM) hit a 12-month excessive in early August of $72.22.
On the present $60.41, the corporate has a market capitalisation of $48.5 billion.