NYSE$NEM

Newmont Mining Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Newmont delivered record adjusted EBITDA and free cash flow, capitalizing on its robust portfolio and higher gold prices.

Newmont Corporation announced record third quarter 2020 results, driven by strong performance from its world-class assets and higher gold prices. The company reported adjusted EBITDA of $1.7 billion and free cash flow of $1.3 billion, marking the best quarterly financial performance in its history. Newmont remains focused on protecting the health and safety of its workforce and neighboring communities amidst the ongoing pandemic.

  • Produced 1.5 million attributable ounces of gold and 273 thousand attributable gold equivalent ounces from co-products.
  • Generated $1.6 billion of cash from continuing operations and $1.3 billion of Free Cash Flow.
  • Reported $4.8 billion of consolidated cash with $7.8 billion of liquidity and a net debt to adjusted EBITDA ratio of 0.4x.
  • Declared third quarter dividend of $0.40 per share, an increase of 60 percent over the prior quarter.

Headline financials

Total Revenue

$3.17B

Previous: $2.71B+16.8%
EPS (adj)

$0.86

Previous: $0.36+138.9%
Attributable Gold Production (Koz)

1.5M

No prior period
Consolidated Gold Ounces Sold (Thousands)

1.4M

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

$1.91K

No prior period
Free Cash Flow

$839M

Previous: $2.18B-61.5%
Net Income

$839M

Previous: $2.18B-61.5%
Operating Income

-$1.52B

Previous: -$352M-330.7%
Gross Profit

-$1.27B

Previous: -$108M-1075.0%
Cash & Equivalents

$4.83B

Previous: $2.71B+78.0%
Total Assets

$40.6B

Previous: $40.8B-0.5%

Revenue & EPS history

Newmont · Revenue · Quarterly

$3.17B

Q3 2020+16.8%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Newmont's 2020 attributable gold production is unchanged at approximately 6.0 million ounces and the Company expects to produce approximately 1.0 million gold equivalent ounces from co-products. Gold CAS is expected to be $760 per ounce, and gold AISC is expected to be $1,015 per ounce. Newmont's capital expenditure for 2020 is expected to be approximately $1.4 billion.

Tailwinds

  • Full Potential at Boddington improves mining rates and grade increases throughout remainder of 2020 with the three year stripping campaign nearing completion in the South Pit.
  • Tanami continues to deliver solid performance.
  • Africa benefits from a full year of production from the Ahafo Mill Expansion.
  • Musselwhite Materials Handling project is 95 percent complete and the conveyor system is on track to be fully commissioned by year end.
  • South America region remains on track to achieve full year 2020 guidance.

Headwinds

  • Covid-related impacts at Yanacocha, Cerro Negro and Éléonore as the operations continued to ramp up in the third quarter from care and maintenance.
  • Mine sequencing in both the Subika and Awonsu open pits, a change in mining method at Subika Underground and lower grades at Akyem impacts Africa production.
  • 2020 outlook includes the impacts from Peñasquito, Éléonore and Musselwhite being temporarily placed into care and maintenance in the second quarter.
  • Éléonore production and cost outlook reflects the ongoing work to integrate the geotechnical model and updated Reserves.
  • Ongoing Covid-related constraints in Argentina that restricts Cerro Negro operations which are at approximately 65 percent of normal capacity.

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 Q3 2020

Historical avgQ3 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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