Mining giants Newmont Corporation today, Thursday announced second quarter 2023 results and declared a second quarter dividend of $0.40 per share.
According to the Company’s second quarter 2023 results Newmont remains on track to achieve full year guidance.
In the second quarter, in its Akyem Mine Newmont processed low-grade stockpiles originally planned for the fourth quarter and optimized the mine plan to safely extract the maximum amount of ore from the pit.
Ahafo is expected to reach higher grade and tonnes mined from Subika Underground with access to the third mining level and additional draw points, in addition to higher ore tonnes mined and improved grade at the Subika Open Pit. The site is on track to commission the replacement conveyor in the third quarter.
“In the second quarter, Newmont delivered $910 million in adjusted EBITDA with a disciplined approach to running a safe and sustainable mining business to generate long-term value. Our business is underpinned by the industry’s strongest balance sheet and a global portfolio with the size and scale to make decisions that deliver on our strategy. We remain on track to achieve our full-year guidance, and I am proud of the prudent decisions made during the second quarter to safeguard our workforce, protect long-term value and position Newmont to deliver a strong performance in the second half of the year” -Tom Palmer, Newmont President and Chief Executive Officer said.
Direct operating costs remained largely consistent with the first quarter as inflation pressures continued to stabilize, with improvements to pricing on energy, fuel and commodities, as well lower direct costs as a result of the suspension of operations at Peñasquito.
In addition, AISC was higher due to higher sustaining capital during the second quarter compared to the first quarter, driven by the timing of spend at Boddington, Musselwhite and Ahafo. Peñasquito incurred $23 million of operating costs and $15 million of depreciation and amortization due to the suspension of operations. In addition, Éléonore incurred $6 million of operating costs and $2 million of depreciation and amortization while the site was evacuated due to the wildfires in Canada. These costs have not been adjusted from Newmont’s Non-GAAP financial metrics for the second quarter.
Cash flow from continuing operations was $656 million, which was favorable compared to the first quarter, primarily driven by lower impacts from working capital changes as higher cash tax payments of $246 million were largely offset by favorable change in accounts receivable.
In addition, Newmont reinvested $616 million in capital spend, including $236 million in development capital spend to continue to progress near-term projects and $380 million in sustaining capital to progress site improvement projects, such as upgrading camp conditions at Musselwhite and the addition of five new autonomous haulage trucks at Boddington to advance stripping in the North and South Pits.
