Newmont delivers ‘solid’ quarter

Gold mining company Newmont (ASX: NEM) has delivered ‘strong’ Q2 2024 results, producing nearly 2.1m gold equivalent ounces from its operations.

Notably, attributable gold production decreased 4% from the previous quarter to 1.6moz due to lower production at the Cerro Negro mine in Argentina after operations were suspended following the fatalities of two members.

Operations were also suspended at Telfer in WA as further work was completed to improve the safe operation of the tailings storage facility.

Second quarter production was also impacted by lower production at Lihir, Papua New Guinea, due to heavy rainfall impacting mine sequencing and at Akyem, Ghana, due to lower grades as a result of the ongoing stripping campaign.

These impacts were partially offset by higher production at Porcupine; Canada, Brucejack; Canada and Peñasquito; Mexico.

Attributable gold equivalent ounce production from other metals was largely in line with the prior quarter at 477koz.

Gold CAS totalled $1.8b for the quarter, while gold CAS per ounce increased 9% to $1152oz compared to the prior quarter, primarily due to lower sales volumes, processing of stockpiles and higher third-party royalties due to higher gold prices.

CAS from other metals totalled $379m for the quarter and CAS per gold equivalent ounce (GEO) was largely in line with the previous quarter at $836oz.

The company generated $1.4b in cash flow from operating activities with net of working capital changes of $263m and net income of $857m.

Newmont president and chief executive Tom Palmer commented on the results.

“Newmont delivered a solid second quarter, producing 2.1m gold equivalent ounces and generating $594m in free cash flow,” he said.

“We continued to advance our divesture program and, to date, have announced $527m in proceeds this year.

“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.”

Newmont remains on track to deliver 2024 guidance for production, costs and capital spend, and it’s anticipating a sequential increase in production in the second half of 2024.