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Newmont Mining Corporation Q2 Results Show Improved Operational And Financial Performance Across The Board

By Kurt Osterberg · On July 25, 2017

Newmont Mining Corporation (NYSE: NEM ) today announced second quarter 2017 results that demonstrated improved operational and financial performance as follows:

Financial Performance Results

Net income: UP to $192 million or $0.36 per diluted share UP from $14 million from $14 million or $0.02 per share in the prior year quarter.

Adjusted net income: UP 59% to $248 million or $0.46 per diluted share mostly due to higher sales volumes

Revenue: UP 12% to $1,875 million due to increased sales volumes

EBITDA: UP 16% to $698 million

Consolidated operating cash flow from continuing operations: Down 21% to $529 million primarily due to changes in working capital.

Free cash flow: DOWN to $346 million on improved volumes and lower capital expenditures, offset by
working capital changes.

Gold

Gold costs applicable to sales (CAS): UP to $664 per troy ounce compared to $661 with the prior year quarter, favorable to guidance.

Gold all-in sustaining costs (AISC): UP 3% to $884 per troy ounce, favorable to guidance primarily due to lower sustaining capital and higher sales volumes.

Attributable gold production: UP 13% to 1.4 million troy ounces, in-line with guidance. New production from Merian and Long Canyon more than offset lower grades at Tanami and Yanacocha.

Average realized price for gold: $1,250 per ounce for the quarter compared to $1,257 in the prior year quarter.

Copper

Copper production: UP 15% to 15,000 tonnes Copper CAS totaled $44 million for the quarter.

Copper CAS per pound: UP 27% to $1.38 per pound on higher sales volumes, full potential improvements and lower co-product allocation of costs to copper.

Copper AISC: UP 22% to $1.69 per pound on improved unit CAS.

Average realized price for copper: UP 23% to $2.46 per pound.

Balance Sheet:

Cash on hand: $3.1 billion.

Leverage ratio: at 0.6x net debt to adjusted EBITDA one of the best credit ratings in the mining sector.