Make Kitco Your Homepage

Top gold miner Newmont achieves production guidance in 2022, posts net loss from continuing operations

Kitco News

(Kitco News) - Newmont (NYSE: NEM, TSX: NGT), the world's top gold miner, announced today that in 2022, the company produced 6.0 million gold ounces (flat y-o-y) and 1.3 million gold equivalent ounces from other metals, achieving original production guidance range set in December 2021.

The company said that gold all-in sustaining costs were $1,211 per ounce in 2022 (2021 - $1,062 per ounce), in-line with updated guidance range despite global cost pressures throughout the year.

Newmont noted higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and higher input commodity prices, notably fuel and energy costs.

The company's revenue for the year remained largely flat at $11.9 billion compared to the prior year. Newmont generated $4.6 billion in adjusted EBITDA (2021 – adjusted EBITDA of $6 billion) and $1.1 billion in free cash flow (2021 – free cash flow of $2.6 billion).

Net loss from continuing operations attributable to Newmont stockholders for the year was $(0.5) billion or $(0.58) per diluted share, a decrease of $1.6 billion from the prior year primarily due to the impairment of goodwill at Cerro Negro of $459 million and Porcupine of $341 million, impairment of long-lived assets at CC&V of $511 million, higher CAS predominately resulting from cost inflation impacts and lower sales volumes for all metals except copper.

Adjusted net income for the year was $1.5 billion or $1.85 per diluted share, compared to $2.4 billion or $2.96 per diluted share in the prior year. Primary adjustments to 2022 net income include total impairment charges of $1.3 billion, reclamation and remediation adjustments primarily related to non-operating Yanacocha and Porcupine sites of $713 million and a pension settlement charge of $137 million.

Newmont announced that its Board of Directors declared a dividend of $0.40 per share of common stock for the fourth quarter of 2022, payable on March 23, 2023 to holders of record at the close of business on March 9, 2023.

The company also reported increased reserves of 96 million gold ounces and resources of 111 million gold ounces, as well as a significant upside to other metals, including copper, silver, lead and zinc.

President and CEO Tom Palmer commented, "Newmont safely delivered on our commitments in 2022 and finished the year from a position of strength, meeting our full year production guidance and generating $4.6 billion in adjusted EBITDA and $1.1 billion in free cash flow. As we look ahead to 2023 and beyond, we expect to steadily increase production and improve costs from our balanced, global portfolio of world-class assets and robust project pipeline.

"We remain committed to our disciplined and balanced approach to capital allocation, allowing us to maintain an investment-grade balance sheet while steadily reinvesting in the business and providing superior returns to shareholders through our industry-leading dividend framework."

The company said that its 2023 production guidance is between 5.7 and 6.3 million gold ounces, steadily improving to between 6.1 and 6.7 million ounces in the longer-term, "driven by strong production from world-class assets and an unmatched organic project pipeline; further enhanced by profitable production from other metals."

Newmont added that gold CAS guidance is $870 to $970 per ounce and gold AISC guidance is $1,150 to $1,250 per ounce for 2023, "improving longer-term due to declining inflationary pressure assumptions and increased production levels."

Newmont is the world's leading gold company and a producer of copper, silver, zinc and lead. The company's world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index. The company was founded in 1921 and has been publicly traded since 1925.

AngloGold Ashanti's gold production up 11% in 2022; profit down 52% on non-cash impairments

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.