Newmont posts a healthy $1.6 billion adjusted EBITDA for the quarter
(Kitco News) - Newmont (NEM:NYSE) recorded $1.6 billion in adjusted EBITDA in their latest quarterly results. In addition to this world's largest gold miner produced 1.4 million attributable ounces of gold and 303 thousand attributable gold equivalent ounces from co-products.
Newmont reported gold CAS of $755 per ounce and AISC of $1,035 per ounce. Full-year results continue to be back-half weighted, in line with guidance ranges. Generated $993 million of cash from continuing operations and $578 million of Free Cash Flow (97 percent attributable to Newmont)*
The producer declared a Q2 dividend of $0.55 per share, consistent with the previous quarter. The company repurchaed $149 million as part of its $1 billion buyback program. Newmont ended the quarter with $4.6 billion of consolidated cash and $7.6 billion of liquidity. The net debt to adjusted EBITDA ratio stands at 0.2x and it reduced $550 million of debt outstanding with available cash in April 2021
Looking ahead, Newmont completed the acquisition of GT Gold in May 2021, increasing its interest in the prospective Golden Triangle. The company also approved full funding for Ahafo North in July 2021, meeting Newmont’s internal hurdle rate at the base assumption of $1,200 per ounce gold price; it expects to deliver an internal rate of return of over 30 percent at current prices
Tom Palmer, President and Chief Executive Officer noted, "Throughout our history Newmont has taken an industry-leading approach to environmental, social and governance practices. We published our sustainability and climate-focused reports in the second quarter, demonstrating our commitment to responsible mining and doing our part in addressing climate change,".
He added "Capitalizing on the strength of our assets and integrated operating model, Newmont delivered a solid second quarter performance with $1.6 billion in adjusted EBITDA and $578 million in free cash flow. Our performance and disciplined approach to capital allocation allowed Newmont to declare a second quarter dividend of $0.55 per share, whilst we continue to reinvest in our business through our most profitable projects. As we move into our next 100 years of mining, we remain focused on delivering value to all of our stakeholders from our world-class portfolio of long-life, responsibly managed assets located in top-tier jurisdictions."