Newmont Corporation, the world's largest gold miner, recently released its second-quarter earnings report, demonstrating strong resilience despite pressure from a gold price pullback. Although gold prices fell by 13% in the second quarter, Newmont not only surpassed market expectations across profitability metrics but also achieved record free cash flow while maintaining its full-year production guidance.
Financial data shows that Newmont's net income for the second quarter reached $2.2 billion, with diluted earnings per share (EPS) at $2.06 and adjusted EPS at $2.10, exceeding the analyst consensus expectation of $1.98. Adjusted EBITDA stood at $3.8 billion. Notably, the company's free cash flow for the quarter also reached $2.2 billion, setting a new historical high for the same period.
On the operational front, the CEO stated that attributable gold production for the second quarter was approximately 1.3 million ounces, with a realized gold price of $4,414 per ounce. Although this price decreased from $4,900 in the first quarter, it remained significantly higher than the $3,320 recorded during the same period last year. Gold sales for the quarter totaled 1.2 million ounces. In terms of production, second-quarter attributable gold output was 1.29 million ounces, a slight 1% decrease compared to the first quarter. While production was briefly interrupted by an earthquake at the Cadia mine in Australia, and output declined at Ahafo South, Peñasquito, and Yanacocha, these negative impacts were offset by increased production at Lihir, Boddington, and the Pueblo Viejo joint venture. Operations at the Cadia mine have now returned to normal.
Regarding costs, influenced by both weaker gold prices and operational disruptions, the all-in sustaining costs (AISC) net of by-products rose from $1,029 per ounce in the previous quarter to $1,621 per ounce. The main reasons for the cost increase included lower production volumes, higher sustaining capital expenditures, and additional expenses incurred during the temporary stoppage at Cadia. However, the company emphasized that cost levels year-to-date remain significantly below the full-year guidance.
Strong cash flow performance supports the company's continued efforts to increase shareholder returns. Since the last earnings release, Newmont has returned $1.9 billion to shareholders through dividends and stock buybacks, with $1.7 billion allocated to repurchases. Since February 2024, the company has reduced its outstanding shares by over 100 million, accounting for approximately 9% of the total share capital, thereby increasing shareholders' exposure to future free cash flow. As of the end of the second quarter, the company held $9 billion in cash, with total liquidity reaching $13 billion and a net cash position of $3.4 billion. The board also declared a quarterly dividend of $0.26 per share.
In terms of project progress, the Red Chris Block Cave project made significant strides in the second quarter, having obtained key regulatory approval from British Columbia, marking an important step towards a final investment decision. Looking ahead, Newmont reiterated its full-year guidance for 2024, expecting attributable gold production of approximately 5.26 million ounces and an all-in sustaining cost of around $1,680 per ounce. The company expects full-year production to be slightly weighted towards the second half, with stronger output expected from multiple mining regions. Production in the third quarter is expected to be roughly flat compared to the second quarter.
