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(Kitco News) - Newmont (NYSE: NEM) (TSX: NGT), the world's largest gold producer, announced today that its Q1 2023 attributable gold production decreased 5% y-o-y to 1,273 thousand ounces.
The company said that the decrease in gold production was primarily due to lower mill recovery and ore grade milled at Peñasquito as a result of the planned mine sequencing, the impact of the mill shutdown at Tanami due to the rainfall event and lower production at Nevada Gold Mines.
Newmont added that these decreases were partially offset by higher ore grade milled at Ahafo and higher mill throughput and ore grade milled at Éléonore.
According to a company press release, gold costs applicable to sales (CAS) increased 15% to $1,025 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.
Moreover, gold all-in sustaining costs (AISC) increased 19% to $1,376 per ounce from the prior year quarter primarily due to higher CAS per gold ounce and higher sustaining capital spend.
The company's attributable gold equivalent ounce (GEO) production from other metals decreased 18% to 288 thousand ounces primarily due to lower mill recovery at Peñasquito.
Newmont noted that Q1 2023 revenue decreased 11% from the prior year quarter to $2.7 billion primarily due to lower sales volumes for all metals except copper and lower average realized co-product metal prices.
Net income from continuing operations attributable to Newmont stockholders was $339 million or $0.42 per diluted share, a decrease of $93 million from the prior year quarter primarily due to lower sales volumes, lower average realized co-product metal prices and higher CAS predominately resulting from cost inflation impacts.
Adjusted net income was $320 million or $0.40 per diluted share, compared to $546 million or $0.69 per diluted share in the prior year quarter. Primary adjustments to first quarter net income include changes in the fair value of investments of $41 million and the net gain of $36 million recognized on the exchange and subsequent sale of Triple Flag Precious Metals shares, as well as valuation allowance and other tax adjustments.
Adjusted EBITDA decreased 29% to $1.0 billion for the quarter, compared to $1.4 billion for the prior year quarter.
"Balance sheet and liquidity remained strong in the first quarter, ending the quarter with $2.7 billion of consolidated cash and $797 million of time deposits with a maturity of more than three months but less than one year, with approximately $6.5 billion of total liquidity; reported net debt to adjusted EBITDA of 0.6x6," Newmont said in a statement.
The company also announced that its Board of Directors declared a dividend of $0.40 per share of common stock for the first quarter of 2023, payable on June 15, 2023 to holders of record at the close of business on June 1, 2023.
Importantly, Newmont noted that the company is on track to achieve its full-year 2023 guidance of between 5.7 and 6.3 million ounces of attributable gold production with gold AISC between $1,150 and $1,250 per ounce.
President and CEO Tom Palmer commented, "Since transforming Newmont's business four years ago, we continue to lead the gold sector in sustainability, profitable gold production and shareholder returns due to the strength of our team and the quality of our world-class portfolio. During the first quarter, we delivered on our expected results, generated nearly $1.0 billion in adjusted EBITDA and returned $318 million to shareholders through our industry-leading dividend framework.
"We remain on track to achieve our full year guidance ranges and build upon our track record of safely delivering long-term value to all of our stakeholders through sustainable and responsible mining."
Newmont is the world's leading gold company and a producer of copper, silver, lead and zinc. The company's assets located 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.
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