(Kitco News) - The world’s biggest gold producer continues to fire on all cylinders as robust production and higher gold prices drive earnings in the second quarter of 2024.
On Wednesday, after the North American equity close, Newmont Corporation (NYSE: NEM) reported adjusted net income of $834 million, or $0.72 per diluted share, compared to $630 million, or $0.55 per diluted share, in the prior quarter.
Newmont’s earnings significantly beat consensus forecasts as analysts were looking for $0.62 per share.
Looking at gold production, the senior producer said that production was down 4% compared to the first quarter. However, it was sharply higher compared to the second quarter of last year. Between April and June, attributable gold production rose to 1.61 million ounces, compared to 1.24 million ounces a year earlier.
Meanwhile, gold prices are sharply higher. Newmont said that its average realized gold price in the second quarter was $2,347 an ounce, up from $2,090 an ounce seen in the first three months of 2024. Prices were up more than 19% from the second quarter of 2023.
Along with higher prices and healthy production, the company said that it is on track to raise $2 billion in gross divestiture proceeds from the sale of high-quality, non-core assets.
The company is already putting its cash to work.
"We continued to advance our divestiture program and, to date, have announced $527 million in proceeds this year. With this momentum, we completed $250 million in share repurchases and repaid $250 million in debt. As we head into the second half of the year, we remain confident in our ability to continue executing on shareholder returns, meet our full-year guidance, and deliver on our commitments,” said Tom Palmer, Newmont's President and Chief Executive Officer.
Along with its share buyback program, Newmont declared a second-quarter dividend of $0.25 per share.
Newmont said that along with its production guidance, it is also on track to keep costs under control. Newmont's all-in sustaining costs rose to $1,562 per ounce of gold from $1,472 per ounce a year earlier.
