NYSE$NEM

Newmont Mining Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Newmont's Q3 2021 earnings were announced, revealing a challenging quarter with significant investments in projects and shareholder returns.

Newmont Corporation reported a challenging Q3 2021, marked by a net loss of $8 million, but generated $1.1 billion in cash from continuing operations and $735 million in free cash flow. The company produced 1.45 million ounces of gold and 315 thousand gold equivalent ounces. Despite the challenges, Newmont reinvested in operations and returned over $2 billion to shareholders through dividends and share buybacks.

  • Newmont produced 1.45 million attributable ounces of gold and 315 thousand attributable gold equivalent ounces from co-products.
  • The company generated $1.1 billion in cash from continuing operations and $735 million in Free Cash Flow.
  • Newmont declared a third quarter dividend of $0.55 per share and completed $99 million of share repurchases.
  • The company ended the quarter with $4.6 billion of consolidated cash and $7.6 billion of liquidity.

Headline financials

Total Revenue

$2.9B

Previous: $3.17B-8.7%
EPS (adj)

$0.60

Previous: $0.86-30.2%
Attributable Gold Production (Koz)

1.4M

Previous: 1.5M-5.9%
Consolidated Gold Ounces Sold (Thousands)

1.4M

Previous: 1.4M-5.0%
Average Realized Gold Price ($/oz)

$1.78K

Previous: $1.91K-7.1%
Free Cash Flow

$3M

Previous: $839M-99.6%
Net Income

$3M

Previous: $839M-99.6%
Operating Income

-$1.57B

Previous: -$1.52B-3.6%
Gross Profit

-$1.37B

Previous: -$1.27B-7.7%
Cash & Equivalents

$4.64B

Previous: $4.83B-4.0%
Total Assets

$39.9B

Previous: $40.6B-1.7%

Revenue & EPS history

Newmont · Revenue · Quarterly

$2.9B

Q3 2021-8.7%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Newmont provided an updated 2021 outlook, adjusting for operational challenges and the ongoing impact of Covid-19, expecting approximately 6.0 million ounces of attributable gold production and 1.3 million gold equivalent ounces from co-products.

Tailwinds

  • The company is advancing near-term projects, including Tanami Expansion 2, Ahafo North, and the mining method change at Subika Underground.
  • Newmont is progressing Yanacocha Sulfides, investing at least $500M through 2022 with a full funds decision expected in the second half of 2022.
  • Newmont is delivering the gold industry’s first Autonomous Haulage System (AHS) fleet, improving safety and long-term productivity at Boddington.
  • The company is maintaining wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals.
  • Newmont continues to experience lower productivity as a result of Covid-related absenteeism and a tightening of the labor market in Canada.

Headwinds

  • Attributable gold production decreased 6 percent to 1,449 thousand ounces from the prior year quarter.
  • Net loss from continuing operations attributable to Newmont stockholders was $(8) million or $(0.01) per diluted share.
  • Revenue decreased 9 percent from the prior year quarter to $2,895 million.
  • COVID-19 specific costs included in Other expense, net, primarily include amounts distributed from the Newmont Global Community Fund to help host communities, governments and employees combat the COVID-19 pandemic.
  • Free Cash Flow decreased to $735 million primarily due to lower operating cash flow and higher capital expenditures.

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 2021

Historical avgQ3 2021

-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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