Mining News
Newmont increases gold production in third quarter, reports net income of $213 million
(Kitco News) - Newmont (NYSE: NEM, TSX: NGT), the world’s largest gold mining company, announced today that its Q3 2022 attributable gold production of 1,487 thousand ounces increased 3% from the prior year quarter primarily due to higher ore grade milled at Ahafo, Akyem and Boddington.
Newmont also reported that its Q3 2022 attributable gold equivalent ounce (GEO) production from other metals decreased 5% to 299 thousand ounces primarily due to lower ore grade milled at Peñasquito.
The company’s gold costs applicable to sales (CAS) per ounce increased 17% to $968 per ounce from the prior year quarter primarily due to lower gold sales volumes and higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and an increase in commodity input costs, including higher fuel and energy costs.
Newmont added that its Q3 2022 revenue decreased 9% from the prior year quarter to $2.6 billion primarily due to lower average realized metal prices, excluding zinc, and lower sales volumes.
Net income attributable to Newmont stockholders was $213 million, an increase of $210 million from the prior year quarter primarily due to the loss recognized on the sale of the Conga mill assets in the prior year, lower income tax expense and a gain on the change in fair value of marketable and other equity securities compared to a loss in the prior year.
Adjusted net income was $212 million or $0.27 per diluted share, compared to $483 million or $0.60 per diluted share in the prior year quarter.
Importantly, the company said it is on track to achieve full-year guidance of 6.0 million ounces of attributable gold production with gold CAS of $900 per ounce and gold AISC of $1,150 per ounce.
"Newmont delivered solid third quarter production of 1.5 million gold ounces as we build momentum for strong production in the fourth quarter. Newmont remains well-positioned to respond to the challenging market environment that our industry faces today. We continue to leverage our leadership and collective experience, as well as the strength of our global portfolio with the size and scale to build a resilient and sustainable future. Supported by our clear long-term strategy, we continue to focus on safely delivering production through our responsibly managed portfolio of world-class assets, while investing in our future and creating value for all of our stakeholders," stated President and CEO Tom Palmer.
Newmont is the world's leading gold company and a producer of copper, silver, zinc and lead. The company 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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