On Thursday, Newmont Corporation declared a $0.25 per share first quarter dividend and released its first quarter 2024 results.
“Newmont delivered a strong first quarter operational performance, producing 2.2 million gold equivalent ounces and generating over $1.4 billion in cash from operations before working capital changes,” said Tom Palmer, Newmont’s President and Chief Executive Officer. “Underpinned by the gold industry’s leading portfolio of Tier 1 gold and copper operations, we remain well-positioned to achieve our full-year guidance and deliver meaningful synergies and productivity improvements from the combined portfolio.
We remain focused on delivering on the commitments we laid out at the beginning of this year, creating an attractive value proposition for new and existing investors during this unique time in the gold industry.”
The mining giants attributed gold production to a decrease of 4 percent to 1,675 thousand ounces from the prior quarter, primarily due to lower production at Tanami due to a planned mill shutdown and seasonal rainfall impacts, and the ongoing stripping campaigns at Boddington and Akyem.
In addition, lower production was delivered from the non-managed joint venture at Nevada Gold Mines. This unfavorable impact was partially offset by higher production at Peñasquito and Yanacocha, as well as a full quarter of ownership of the sites acquired in the Newcrest transaction. Full year production for 2024 is expected to be second-half-weighted, as previously indicated.
Looking ahead, operations at Cerro Negro are currently suspended as a full investigation is conducted following the tragic fatalities of two members of the Newmont workforce on April 9, 2024. In addition, operations are temporarily suspended at Telfer, one of Newmont’s non-core assets, as further work is completed to remediate the safe operation of the tailings storage facility.
The average realized price of gold was $2,090, up $86 per ounce from the previous quarter. The average realized gold price includes reductions of $11 per ounce for treatment and refining costs, a positive mark-to-market impact of $19 per ounce on provisionally-priced sales, and $2,082 per ounce of gross price received.
A $3.3 billion increase over the previous quarter was mainly attributable to the recognition of impairment charges and higher reclamation and remediation expense during the fourth quarter of 2023, as well as higher average realized gold prices and lower CAS in the first quarter of 2024. Net income from continuing operations attributable to Newmont stockholders was $166 million, or $0.15 per diluted share.
In the previous quarter, adjusted net income was $452 million, or $0.46 per diluted share; this quarter, it was $630 million, or $0.55 per diluted share. A $485 million loss on assets held for sale, $31 million in changes to the fair value of investments, $29 million in Newcrest transaction and integration costs, and settlement are the main adjustments to first-quarter net income.
