Newmont (NEM) Q4 2023 earnings summary

Executive summary

• Acquisition of Newcrest closed Nov. 6, 2023, creating a broad gold and copper portfolio; 2024 priorities are integration, portfolio optimization and investment in near-term projects.

• Full-year production was within revised guidance; 2023 results included a $2.5B net loss, while adjusted net income was $1.36B and adjusted EBITDA was $4.2B.

Financial highlights

• FY2023 revenue was $11.8B, nearly flat YoY; average realized gold price rose to $1,954/oz from $1,792/oz.

• FY2023 attributable gold production fell 7% YoY to 5.545M oz; other-metal GEO production declined 30% to 891K oz, primarily reflecting the Peñasquito strike.

• FY2023 net loss was $2.475B, or $2.97/diluted share; adjusted net income was $1.358B, or $1.61/share, and adjusted EBITDA was $4.217B.

• Continuing-operations cash flow was $2.754B; free cash flow was $88M after $2.666B of capital expenditures and $513M of unfavorable working-capital changes.

• Q4 revenue rose 24% YoY to $4.0B; adjusted net income was $486M, or $0.50/diluted share, and adjusted EBITDA was $1.384B, up 19% YoY.

Outlook and guidance

• 2024 attributable gold production is forecast at 6.93M oz total, including 5.63M oz from the Tier 1 portfolio; production is weighted 47% to H1 and 53% to H2.

• 2024 total-portfolio gold CAS is forecast at $1,050/oz and AISC at $1,400/oz; Tier 1 portfolio CAS and AISC are expected at $1,000/oz and $1,300/oz.

• Total 2024 sustaining and development capital are forecast at $1.8B and $1.3B, respectively; exploration and advanced-project investment is expected to be $450M.

• Adjusted tax rate is forecast at 34%; G&A at $300M, interest expense at $365M and depreciation and amortization at $2.85B.

• Tanami Expansion 2 commercial production is expected in H2 2027; revised capital estimate is $1.7B-$1.8B. Ahafo North is expected to begin commercial production in H2 2025.