NYSE$NEM

Newmont Mining Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Newmont delivered solid financial results, demonstrating resilience and benefiting from rising gold prices.

Newmont Corporation reported solid second quarter 2020 financial results, with attributable gold production of 1.26 million ounces. The company generated $668 million in cash from continuing operations and $388 million in Free Cash Flow. Revenue increased to $2,365 million due to higher average realized gold prices.

  • Produced 1.26 million attributable ounces of gold and 138 thousand attributable gold equivalent ounces from co-products.
  • Generated $668 million of cash from continuing operations and $388 million of Free Cash Flow.
  • Reported $3.8 billion of consolidated cash with $6.7 billion of liquidity.
  • Declared second quarter dividend of $0.25 per share.

Headline financials

Total Revenue

$2.37B

Previous: $2.26B+4.8%
EPS (adj)

$0.32

Previous: $0.12+166.7%
Attributable Gold Production (Koz)

1.3M

No prior period
Consolidated Gold Ounces Sold (Thousands)

1.2M

No prior period
Average Realized Gold Price ($/oz)

$1.72K

No prior period
Free Cash Flow

$344M

Previous: -$25M+1476.0%
Net Income

$344M

Previous: -$25M+1476.0%
Operating Income

-$1.27B

Previous: -$435M-192.9%
Gross Profit

-$1.06B

Previous: -$104M-917.3%
Cash & Equivalents

$3.81B

Previous: $1.83B+108.4%
Total Assets

$39.9B

Previous: $37B+7.8%

Revenue & EPS history

Newmont · Revenue · Quarterly

$2.37B

Q2 2020+4.8%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Newmont reaffirmed its 2020 production outlook and provided additional details on its regional and site-level guidance.

Tailwinds

  • 2020 attributable gold production remains at approximately 6.0 million ounces.
  • Expects to produce approximately 1.0 million gold equivalent ounces from co-products.
  • Gold CAS has been lowered to $760 per ounce.
  • Progressing the majority of its development and sustaining capital projects, including Tanami Expansion 2.
  • Ramping up drilling programs and preparing to restart Greenfields activities.

Headwinds

  • Total 2020 capital expenditure is expected to be approximately $1.4 billion due to reductions in non-essential activities and changes to the development capital schedule for Tanami Expansion 2, which defers some expenditure to 2021.
  • Newmont's 2020 exploration and advanced project spend has been lowered to approximately $350 million as all Greenfield programs were suspended and infill drilling programs were on hold at operations in care and maintenance.
  • Cerro Negro production and cost outlook reflects the Covid-related constraints on advancing mine development to access to higher-grade ore originally planned for the fourth quarter of 2020.
  • Revised 2020 outlook includes the impacts from Peñasquito, Éléonore and Musselwhite being temporarily placed into care and maintenance.
  • The Company is currently ramping up drilling programs and preparing to restart Greenfields activities as soon as local restrictions are lifted in areas of Africa, Australia and South America.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.1%

Avg return

Earnings day

-1.6%

Avg return

5 days after

-1.7%

Avg return

30 days after

38%

28 / 73 earnings

Positive

+10.7%

Q1 2024

Best reaction

-16.1%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%-3.1%-3.0%
Q4 2025-3.3%-0.4%-23.6%
Q3 2025-6.3%-10.4%-6.1%
Q2 2025+1.2%+0.8%+15.7%
Q1 2025+4.9%-0.4%+0.9%
Q4 2024-5.7%-9.4%-1.5%
Q3 2024-16.1%-17.6%-26.1%
Q2 2024-2.9%+0.4%+10.6%
Q1 2024+10.7%+5.3%+8.8%
Q4 2023-6.4%-10.7%+1.0%
Q3 2023+6.0%+1.9%+2.3%
Q2 2023-4.4%-3.5%-15.4%
Q1 2023+0.5%+1.9%-13.7%
Q4 2022-1.6%-1.4%+9.8%
Q3 2022-6.6%-3.1%+14.8%
Q2 2022-10.2%-11.9%-12.8%
Q1 2022-5.8%-6.4%-12.8%
Q4 2021-0.5%+1.1%+15.7%
Q3 2021-6.2%-4.9%-2.8%
Q2 2021-0.4%+1.6%-6.6%
Q1 2021-2.8%-0.3%+14.5%
Q4 2020-0.6%-0.3%+8.7%
Q3 2020+7.1%+13.7%-0.3%
Q2 2020+1.9%+3.5%-1.7%
Q1 2020-0.5%+2.9%-10.9%
Q4 2019+7.1%+6.4%-12.2%
Q3 2019-3.2%-5.9%+2.9%
Q2 2019-5.1%-4.0%+0.0%
Q1 2019-2.3%-3.5%-0.9%
Q4 2018+3.1%-1.2%-2.5%
Q3 2018-5.5%-2.4%+2.2%
Q2 2018-1.5%-2.1%-14.5%
Q1 2018+0.3%-3.2%-2.7%
Q4 2017+1.4%+0.7%+1.6%
Q3 2017-2.6%-1.6%-0.2%
Q2 2017+9.0%+9.3%+8.6%
Q1 2017-3.6%-0.9%-1.4%
Q4 2016-2.7%-2.5%-9.2%
Q3 2016-4.9%+1.2%-12.8%
Q2 2016-2.1%-3.0%+6.7%
Q1 2016+4.1%
Q4 2015+1.1%
Q3 2015+6.0%
Q2 2015-6.1%
Q1 2015+9.7%
Q4 2014+3.4%
Q3 2014-9.9%
Q2 2014-0.2%
Q1 2014+2.0%
Q4 2013-1.6%
Q3 2013-7.3%
Q2 2013+0.6%
Q1 2013-3.2%
Q4 2012+0.6%
Q3 2012-10.7%
Q2 2012-2.8%
Q1 2012+0.8%
Q4 2011-3.6%
Q3 2011+4.1%
Q4 2010+4.1%
Q2 2011-4.2%
Q1 2011+0.5%
Q3 2010-3.5%
Q2 2010-0.1%
Q1 2010+4.3%
Q4 2009+6.0%
Q3 2009+4.7%
Q3 2008+4.7%
Q2 2009-0.5%
Q1 2008-4.9%
Q1 2009-4.9%
Q4 2008-4.9%
Q2 2008-4.9%

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