Newmont reports best quarter in its history on rising gold price
(Kitco News) - The world's largest gold miner said that it saw record profits in the third quarter, according to its earnings report released Thursday morning.
In its quarterly earnings reports, Newmont Corp. (NYSE: NEM) reported an adjusted net income of $697 million or $0.86 per diluted share, compared to $292 million or $0.36 per diluted share in the prior-year quarter. Earnings slightly beat analyst consensus forecasts.
The company said that it saw record revenue between July and September, generating $1.6 billion of cash from continuing operations and $1.3 billion of Free Cash Flow.
"Revenue increased 17% from the prior-year quarter to $3,170 million primarily due to higher average realized gold prices, partially offset by lower gold sales volumes," the company said.
"This was the best quarterly financial performance in Newmont's history. We also remain focused above all else on protecting the health, safety and wellbeing of our workforce and neighboring communities as the pandemic continues," said Tom Palmer, president and chief executive officer, in a prepared statement.
"As demonstrated by our second dividend increase this year, with a 79 percent increase in January and a further 60 percent increase in October, I am confident that our world-class portfolio is best positioned to generate industry-leading value and returns for our shareholders," he added.
The company's record earnings come as it saw a drop in production. Newmont said that it produced more than 1.5 million attributable ounces of gold, down about 6% compared to the third quarter of 2019.
Newmont said that production was down primarily due to ongoing Covid-related impacts at Yanacocha, Cerro Negro, and Éléonore. The operations continued to ramp up in the third quarter from care and maintenance. The mines were shut down in the second quarter because of lockdown measures governments enacted to slow the spread of the COVID-19 pandemic.
However, the company reported an average realized gold price of $1,913, an increase of $437 per ounce over the prior year quarter.