Newmont’s revenue missed estimates as gold prices surged

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newmont’s revenue missed estimates as gold prices surged


Newmont (NYSE: NEM) reported mixed financial results even as the price of gold approached its all-time high. In all, the company’s earnings per share of 40 cents was slightly better than estimates. 

Newmont’s revenue came in at $2.6 billion, which missed the median estimates by about $21 million. The company mined 1.27 million ounces of gold during the quarter. It produced 288k gold equivalents of copper, silver, lead and zinc. It hopes that it will produce between 5.7 million and 6.3 million ounces of gold this year.

Newmont’s net income came in at $363 million in the first quarter. It ended the quarter with $2.7 billion in cash and $797 million in short-term deposits. Its total liquidity stands at over $6.5 billion. In a statement, the firm’s CEO said:

“During the first quarter, we delivered on our expected results, generated nearly $1.0 billion in adjusted EBITDA, and returned $318 million to shareholders through our industry-leading dividend framework.”

Newmont is benefiting from the rising gold prices. As we wrote here, the price of gold has jumped by over 23% from the lowest level in November last year. It now sits a few points below the all-time of $2,070. 

This strong performance has helped Newmont seek inorganic growth. Earlier this year, the company proposed acquiring Newcrest, an Australian company, in $19.65 billion. The combination, if it goes through, will solidify Newmont as the biggest mining company in the world. Newmont’s CEO said:

“This transaction would strengthen our position as the world’s leading gold company by joining two of the sector’s top senior gold producers and setting the new standard in safe, profitable, and responsible mining.”

Newmont stock price was unchanged in the premarket.


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