Newmont posts historic Q3 results

Newmont Corp. [NGT-TSX; NEM-NYSE], the world’s largest gold producer, has reported the best quarterly results in its history, CEO Tom Palmer said Thursday October 29.

Adjusted net income was US$697 million or US$0.86 per share in the third quarter ended September 30, 2020, compared to US$292 million or $0.36 per share in Q3 2019.

Revenue jumped 17% from the prior year quarter to US$3.17 billion primarily because of higher realized gold prices, the company said in a press release.

Newmont said its average realized gold price in the third quarter was US$1,91/oz, an increase of US$437/oz from the equivalent quarter in 2019.

Holding operations that result from Newmont Mining’s recent US$10 billion takeover of Canadian mining giant Goldcorp, Newmont now ranks as the world’s largest gold producer with assets across the Americas, Africa and Australia.

The company said attributable gold production decreased 6.0% in Q3 to 1.54 million ounces compared to the year ago due to ongoing Covid-related impacts at Yanacocha, Cerro Negro, and Eleonore as the operations continued to ramp up in the third quarter from care and maintenance, in addition to the sale of Red Lake, Kalgoorlie, partially offset by Penasquito and Musselwhite.

“Capitalizing on the strength of our portfolio and higher gold prices, we delivered record third quarter adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of US$1.7 billion and free cash flow of US$1.3 billion,” said Palmer.  “This was the best quarterly financial performance in Newmont’s history,” he said.

“As demonstrated by our second dividend increase this year, with a 79% increase in January, and a further 60% increase in October, I am confident that our world-class portfolio is best positioned to generate industry-leading value and returns for our shareholders.”

On Thursday, Newmont shares rose 3.5% or $2.78 to $80.96 in light trading volume. The shares are currently trading in a 52-week range of $96.45 and $44.00.