Newmont tops profit estimates on gold price surge
The world’s largest gold miner’s adjusted net income for the June quarter was $261 million or $0.32 per diluted share, compared with $92 million or $0.12 per diluted share in the prior-year quarter. The results topped analysts estimates of $0.31 per share.
Newmont also reported $984 million in adjusted EBITDA and $388 million in free cash flow.
Revenue rose 5% from the prior-year quarter to $2.37 billion, helped by record-high gold prices.
Newmont’s averaged realized gold price jumped about 31% to $1,724 per ounce in the second quarter ended June 30.
Its attributable gold production, however, fell 21% to 1.26 million ounces as coronavirus lockdowns led to the temporary closure of some of its mine sites.
“We safely and efficiently executed restart plans at our mines previously in care and maintenance and Newmont’s world-class portfolio is well-positioned to deliver an even stronger second half of 2020,” CEO Tom Palmer said in a media statement.
“The ongoing favorable gold price environment amplifies our free cash flow generation yet our discipline around capital allocation will not change as we continue to invest in profitable projects,” Palmer said.
Newmont will spend $45 million per month to maintain safety protocols at its mines and in Mexico, Peru and Argentina, Palmer said.
The company has reaffirmed its revised guidance issued on May 19. The miner’s 2020 attributable gold production remains at about six million ounces.