Newmont Corporation (NEM) Bundle
A Brief History of Newmont Corporation
Overview
Newmont Corporation, headquartered in Denver, Colorado, is one of the world's largest gold mining companies. As of 2024, it operates several mines across North America, South America, and Australia. Newmont has a rich history dating back to 1921, with a focus on responsible mining practices and sustainable operations.
Recent Financial Performance
For the third quarter of 2024, Newmont reported significant growth in its financial metrics compared to the previous year. The company's net income from continuing operations attributable to stockholders was $873 million, or $0.76 per diluted share, marking an increase of 457% from $157 million in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (millions) | $873 | $157 |
| Adjusted Net Income (millions) | $936 | $286 |
| Adjusted EBITDA (millions) | $1,967 | $933 |
| Free Cash Flow (millions) | $1,280 | $392 |
| Gold Production (thousands of ounces) | 1,668 | 1,291 |
Operational Highlights
In 2024, Newmont achieved an attributable gold production of 4.95 million ounces year-to-date, up from 3.8 million ounces in the same period of 2023. The company also produced 430 thousand gold equivalent ounces from co-products, reflecting its diversified operations and efficient resource management.
Market Position and Strategic Initiatives
Newmont's strategic initiatives include the completion of significant acquisitions, notably the Newcrest Mining transaction, which bolstered its portfolio and production capabilities. The company has focused on optimizing its assets by entering agreements to sell non-core assets, including the Telfer and Akyem segments, which are expected to close in the fourth quarter of 2024.
Stock Performance
As of September 30, 2024, Newmont's stock performance has been robust, with a share price increase attributed to strong production numbers and positive market sentiment. The company has also authorized additional stock repurchase programs, totaling $2 billion, aimed at enhancing shareholder value.
Dividends
Newmont declared a dividend of $0.25 per share in October 2024, consistent with its commitment to return capital to shareholders. The cash dividends paid per common share for the nine months ended September 30, 2024, were $0.75, reflecting a disciplined capital allocation policy.
Conclusion
Newmont Corporation continues to solidify its position as a leader in the gold mining sector through strategic acquisitions, operational efficiency, and a commitment to sustainable practices. The company's financial performance in 2024 demonstrates resilience and growth potential in a competitive market.
A Who Owns Newmont Corporation (NEM)
Major Shareholders
As of 2024, Newmont Corporation (NEM) has a diverse ownership structure, with significant stakes held by institutional investors and a variety of mutual funds. The largest shareholders include:
| Shareholder | Percentage Ownership | Type of Shareholder |
|---|---|---|
| The Vanguard Group, Inc. | 8.1% | Institutional Investor |
| BlackRock, Inc. | 7.5% | Institutional Investor |
| State Street Corporation | 4.5% | Institutional Investor |
| Wellington Management Group LLP | 3.9% | Institutional Investor |
| Franklin Templeton Investments | 3.0% | Institutional Investor |
| Other Institutional and Individual Investors | 69.0% | Various |
Insider Ownership
Insider ownership plays a critical role in the governance of Newmont Corporation. As of 2024, insiders own approximately 0.8% of the company’s shares. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| Tom Palmer | President & CEO | 220,000 |
| Nancy Buese | Chief Financial Officer | 85,000 |
| Mark Cutifani | Non-Executive Chairman | 50,000 |
Stock Performance
In 2024, Newmont Corporation's stock has shown significant volatility, reflecting broader market trends and company-specific events. The following data summarizes key stock metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $48.50 |
| 52-Week High | $60.00 |
| 52-Week Low | $39.00 |
| Market Capitalization | $40 billion |
| Dividend Yield | 1.5% |
Recent Transactions and Changes
Newmont has been active in the market, including significant transactions that have affected ownership structure:
- Acquisition of Newcrest Mining Limited, completed in early 2024, which increased Newmont's global footprint.
- Share repurchase program announced in October 2024, with a plan to buy back up to $2 billion in shares over the next 24 months.
- Dividend declaration of $0.25 per share in October 2024.
Market Trends
The gold mining sector has experienced fluctuations in demand, influenced by economic conditions, geopolitical tensions, and changes in investor sentiment. Newmont's performance is closely tied to:
- Gold prices, which average around $2,600 per ounce in 2024.
- Operational challenges and labor relations affecting production levels.
- Environmental and regulatory pressures impacting mining operations.
Conclusion on Ownership Dynamics
The ownership dynamics of Newmont Corporation reflect a mix of institutional and insider interests, with significant ongoing transactions impacting its market position. The shareholder base remains robust, with a focus on long-term value creation.
Newmont Corporation (NEM) Mission Statement
Newmont Corporation is committed to creating value and improving lives through sustainable and responsible mining. The company's mission emphasizes the importance of safety, environmental stewardship, and community engagement while delivering economic benefits.
Core Values
- Integrity: Conducting business ethically and transparently.
- Accountability: Taking responsibility for actions and decisions.
- Innovation: Continuously improving processes and technologies.
- Collaboration: Working together with stakeholders for mutual benefit.
Financial Overview
As of September 30, 2024, Newmont's financial performance reflects its commitment to sustainable mining practices and operational excellence. Key financial metrics include:
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Net Income (millions) | $924 | $163 |
| Adjusted Net Income (millions) | $936 | $286 |
| Earnings per Share (diluted) | $0.80 | $0.20 |
| Sales (millions) | $4,605 | $2,493 |
| Free Cash Flow (millions) | $1,280 | $392 |
Production Metrics
Newmont's operational efficiency is highlighted by its production metrics for the third quarter of 2024:
| Commodity | Produced (thousands) | Sold (thousands) |
|---|---|---|
| Gold | 1,574 | 1,568 |
| Silver (million ounces) | 7 | 6 |
| Copper (pounds) | 81 | 77 |
| Lead (pounds) | 43 | 36 |
| Zinc (pounds) | 127 | 134 |
Cost Structure
Understanding the cost structure is crucial for evaluating Newmont's financial health:
| Cost Type | Q3 2024 (per ounce/pound) | Q3 2023 (per ounce/pound) |
|---|---|---|
| Costs Applicable to Sales (Gold) | $1,892 | $1,273 |
| All-in Sustaining Costs (Gold) | $1,611 | $1,426 |
| Depreciation and Amortization | $631 | $480 |
| Exploration Expenses | $74 | $78 |
Community Engagement and Sustainability
Newmont is dedicated to sustainable practices, which include:
- Environmental Stewardship: Implementing measures to minimize environmental impact.
- Community Development: Investing in local communities to foster economic growth.
- Employee Safety: Prioritizing the health and safety of all employees.
As of October 2024, Newmont declared a dividend of $0.25 per share as part of its commitment to returning value to shareholders.
How Newmont Corporation (NEM) Works
Business Overview
Newmont Corporation is a leading gold producer, with a diverse portfolio of assets around the world, including mines in North America, South America, Australia, and Africa. The company focuses on the exploration, mining, and production of precious metals, primarily gold, but also copper, silver, lead, and zinc.
Financial Performance
As of September 30, 2024, Newmont reported a significant increase in financial performance compared to the prior year. Key financial metrics include:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Sales (in millions) | $4,605 | $2,493 | $13,030 | $7,855 |
| Net Income (in millions) | $924 | $163 | $1,960 | $681 |
| Adjusted Net Income (in millions) | $936 | $220 | $2,400 | $1,030 |
| Free Cash Flow (in millions) | $1,280 | $392 | $2,400 | $1,030 |
| Adjusted EBITDA (in millions) | $1,967 | $932 | N/A | N/A |
Production Metrics
Newmont's production metrics demonstrate its operational efficiency and output capabilities:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Consolidated Gold Production (thousands of ounces) | 1,574 | 1,260 | 4,727 | 3,696 |
| Attributable Gold Production (thousands of ounces) | 1,668 | 1,291 | 4,950 | 3,804 |
| Average Realized Gold Price (per ounce) | $2,518 | $1,920 | $2,316 | $1,930 |
| Consolidated Silver Production (million ounces) | 7 | — | 24 | 14 |
| Consolidated Copper Production (million pounds) | 81 | 23 | 245 | 75 |
Cost Structure
The company’s cost structure is essential for understanding its profitability:
| Cost Type | Q3 2024 (per ounce) | Q3 2023 (per ounce) | 9M 2024 (per ounce) | 9M 2023 (per ounce) |
|---|---|---|---|---|
| Costs Applicable to Sales | $1,207 | $1,019 | $1,138 | $1,033 |
| All-in Sustaining Costs | $1,611 | $1,426 | $1,537 | $1,425 |
Liquidity and Capital Resources
As of September 30, 2024, Newmont's liquidity and capital resources are as follows:
| Metric | Value (in millions) |
|---|---|
| Consolidated Cash | $3,000 |
| Total Liquidity | $7,102 |
| Net Debt | $5,997 |
Recent Developments
In 2024, Newmont has completed significant transactions to optimize its asset portfolio:
- Completed the sale of the Batu and Elang contingent consideration assets for cash consideration of $153 million.
- Announced agreements to sell the Telfer and Akyem reportable segments, expected to close in Q4 2024.
- Authorized an additional $2 billion share repurchase program to enhance shareholder returns.
Dividend Policy
Newmont declared a dividend of $0.25 per share in October 2024, reflecting its commitment to returning value to shareholders. The declaration and payment of future dividends will depend on financial performance and other relevant factors.
How Newmont Corporation (NEM) Makes Money
Revenue Streams
Newmont Corporation generates revenue primarily through the sale of metals, with gold being the dominant product. For the nine months ended September 30, 2024, Newmont reported total sales of $13,030 million, a significant increase from $7,855 million in the same period of 2023, marking a 66% increase.
| Metal Type | Sales (2024) | Sales (2023) | Increase ($) | Percent Change (%) |
|---|---|---|---|---|
| Gold | $10,909 million | $7,083 million | $3,826 million | 54% |
| Copper | $1,003 million | $282 million | $721 million | 256% |
| Silver | $557 million | $246 million | $311 million | 126% |
| Lead | $136 million | $64 million | $72 million | 113% |
| Zinc | $425 million | $180 million | $245 million | 136% |
Production Volumes
In terms of production, Newmont's operations yielded substantial quantities of various metals. For the three months ended September 30, 2024, the company produced:
| Metal Type | Production (2024) | Production (2023) |
|---|---|---|
| Gold (thousands of ounces) | 1,574 | 1,260 |
| Copper (millions of pounds) | 81 | 23 |
| Silver (million ounces) | 7 | 0 |
| Lead (millions of pounds) | 43 | 0 |
| Zinc (millions of pounds) | 127 | 0 |
Average Realized Prices
The average realized prices for metals sold also reflect the company’s financial strength. For the three months ended September 30, 2024, the average realized prices were:
| Metal Type | Average Realized Price (2024) | Average Realized Price (2023) |
|---|---|---|
| Gold (per ounce) | $2,518 | $1,920 |
| Copper (per pound) | $4.31 | $3.68 |
| Silver (per ounce) | $25.98 | N.M. |
| Lead (per pound) | $0.86 | N.M. |
| Zinc (per pound) | $1.14 | N.M. |
Costs and Expenses
Newmont’s costs applicable to sales for the nine months ended September 30, 2024, totaled $6,572 million, compared to $4,396 million in the prior year, reflecting an increase in operational expenses associated with higher production levels and costs related to the Newcrest transaction.
| Cost Category | Cost (2024) | Cost (2023) |
|---|---|---|
| Costs Applicable to Sales | $6,572 million | $4,396 million |
| Depreciation and Amortization | $1,887 million | $1,427 million |
| Reclamation and Remediation | $324 million | $298 million |
| Exploration | $184 million | $192 million |
| General and Administrative | $314 million | $215 million |
Net Income
For the nine months ended September 30, 2024, Newmont reported a net income of $1,960 million, significantly up from $681 million in the same period of 2023. This increase is attributed to higher sales volumes and improved average realized prices for gold and other metals.
Cash Flow and Dividends
The net cash provided by operating activities for the nine months ended September 30, 2024, was $3,807 million, up from $2,138 million in 2023. Free cash flow for the same period was reported at $1,280 million.
Newmont declared a dividend of $0.25 per share in October 2024. The company’s dividend payments reflect its strong cash position and commitment to returning value to shareholders.
Financial Position and Liquidity
As of September 30, 2024, Newmont had a total liquidity of $7.1 billion and consolidated cash of $3.0 billion. The company's net debt stood at $5.997 billion, indicating a strong balance sheet position.
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Article updated on 8 Nov 2024
Resources:
- Newmont Corporation (NEM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Newmont Corporation (NEM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Newmont Corporation (NEM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.