Newmont Corporation has announced its solid second quarter production and free cash flow results from leading portfolio of long-life, responsibly managed assets and updates on full-year guidance.
The Mining giants produced 1.5 million attributable ounces of gold and 330 thousand attributable gold equivalent ounces (GEO) from co-products, an increase of more than 130 thousand total gold equivalent ounces from the first quarter. They generated $1.0 billion of cash from continuing operations and $514 million of Free Cash Flow as well.
Newmont President and Chief Executive Officer, Tom Palmer expressed his thoughts on the company’s solid second quarter performance.
“Newmont delivered a solid second quarter performance, producing 1.5 million gold ounces and generating $514 million in free cash flow. Through our industry-leading portfolio of assets and projects, our proven integrated operating model, our balanced and disciplined approach to capital allocation and our values-driven commitment to our purpose of creating value and improving lives through sustainable and responsible mining, Newmont remains well-positioned to safely manage through the evolving and unprecedented challenges that face our industry and the world at large” He said.
Compared to the first quarter of 2022, earnings were negatively impacted by higher labor, materials and consumables costs of approximately $80 million, higher fuel and energy costs of approximately $50 million and the $70 million expense recognized in the second quarter related to the Peñasquito profit-sharing agreement announced in early July. In addition, lower realized metals prices, including unfavorable mark-to-market adjustments on provisionally-priced sales, impacted earnings by approximately $225 million compared to the first quarter.
These impacts were partially offset by approximately $250 million of higher sales volumes in the second quarter.
On its project update Newmont said attributable gold production1 increased 3 percent to 1,495 thousand ounces from the prior year quarter primarily due to higher ore grade milled at Boddington, Ahafo and Tanami and a draw-down of in-circuit inventory compared to a build in the prior year.
In addition, the current quarter benefited from the increased ownership at Yanacocha due to the acquisition of Buenaventura’s 43.65% ownership in February 2022. These increases were partially offset by lower ore grade milled and lower throughput at Peñasquito and Éléonore.
