The world’s largest gold producer, Newmont Corporation (NYSE: NEM), reported robust earnings for the second quarter of 2024, driven by strong production and rising gold prices.
Late Wednesday, following the close of North American equity markets, Newmont announced an adjusted net income of $834 million, or $0.72 per diluted share. This is a significant increase from the previous quarter’s $630 million, or $0.55 per diluted share, and surpassed analysts’ expectations, who had forecasted earnings of $0.62 per share.
Despite a 4% decrease in production from the first quarter, Newmont’s gold output for the second quarter showed a substantial year-over-year increase. Attributable gold production between April and June reached 1.61 million ounces, up from 1.24 million ounces during the same period last year.
Gold prices also contributed to the impressive earnings. Newmont reported an average realized gold price of $2,347 per ounce in the second quarter, up from $2,090 per ounce in the first quarter, marking a 19% increase from the second quarter of 2023.
In addition to higher prices and robust production, Newmont is progressing towards its goal of raising $2 billion in gross divestiture proceeds through the sale of high-quality, non-core assets.
The company is effectively utilizing its cash reserves. “We continued to advance our divestiture program and, to date, have announced $527 million in proceeds this year. With this momentum, we completed $250 million in share repurchases and repaid $250 million in debt. As we head into the second half of the year, we remain confident in our ability to continue executing on shareholder returns, meet our full-year guidance, and deliver on our commitments,” stated Tom Palmer, Newmont’s President and CEO.
Newmont has also declared a second-quarter dividend of $0.25 per share as part of its ongoing share buyback program.
The company is committed to managing costs alongside production. Newmont reported an increase in all-in sustaining costs to $1,562 per ounce of gold, up from $1,472 per ounce a year earlier, yet remains on track with its cost control and production guidance.
