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Newmont reports lower gold production and net income in Q1, says on track to meet 2022 guidance

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(Kitco News) - Newmont (TSX: NGT) reported today that in Q1 2022, its attributable gold production decreased 8% to 1,344 thousand ounces from the prior year quarter.

The company said that this decline was primarily due to lower mill throughput at CC&V, Tanami, Porcupine and Nevada Gold Mines, lower ore grades milled at Peñasquito, Pueblo Viejo, Éléonore and Porcupine, and a build-up of in-circuit inventory.

Newmont added that these decreases were partially offset by higher ore grade milled at Boddington and higher production at Yanacocha due to the acquisition of Buenaventura's 43.65% ownership in February 2022.

The company’s gold costs applicable to sales (CAS) increased 18% to $890 per ounce from the prior year quarter primarily due to lower ounces sold, higher direct operating costs, a draw-down of in-circuit inventory and lower by-product credits at Yanacocha.

Revenue increased 5% from the prior year quarter to $3.0 billion primarily due to higher average realized gold prices and higher copper sales volumes, which were partially offset by lower gold sales volumes.

Net income from continuing operations attributable to Newmont stockholders was $432 million or $0.54 per diluted share, a decrease of $106 million from the prior year quarter primarily due to lower gold sales volumes, higher CAS, a pension settlement charge of $130 million, the loss recognized on the sale of the La Zanja equity method investment in 2022 compared to a gain on the sale of TMAC in 2021 and higher reclamation and remediation charges.

Consolidated operating cash flow from continuing operations decreased 18% from the prior year quarter to $689 million primarily due to lower gold sales volumes and an increase in accounts receivable related to timing of cash receipts.

Free cash flow decreased to $252 million from $442 million a year ago primarily due to lower operating cash flow and higher development capital expenditures.

Anglo American reports lower production of copper, nickel, PGM, iron ore, coal and manganese ore in Q1 2022

Importantly, the company reiterated it remains on track to achieve full-year guidance ranges, adding that its full-year results continue to be back-half weighted.

Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. Newmont is the only gold producer listed in the S&P 500 Index. Newmont was founded in 1921 and has been publicly traded since 1925.

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