Newmont Corporation (ASX:NEM) Sees 110% YoY EBITDA Growth in Q3FY24, Forecasts Positive Outlook for 2025

Highlights

• In Q3FY24, gold production increased by 29.46% YoY, adjusted EBITDA surged by 110.83% YoY, and operating cash flow rose by 64.31% YoY.
• Newmont agreed to sell its Porcupine operation for USD 425 million, as part of its USD 4.3 billion non-core asset divestment program.
• Newmont targets 1.8 million ounces of gold at an AISC of USD 1,475 per ounce in 2025.

Newmont Corporation (ASX:NEM), a gold mining company, continues to execute its strategic transformation, marked by key asset sales, robust quarterly performance, and an optimistic outlook for 2025.

Today (28 January 2025), Newmont signed an agreement with Discovery Silver Corp. to sell its Porcupine operation, based in Canada, for up to USD 425 million of consideration. This transaction aligns with the company’s broader non-core asset divestiture program announced in February 2024.

Once this sale is completed (expected to close in 1HFY25), along with previously announced transactions, Newmont anticipates total proceeds of up to USD 4.3 billion, which will be reinvested in core assets and growth initiatives.

Q3FY24 Financial Results

For the quarter ending 30 September 2024 (3QFY24), Newmont delivered a substantial improvement in key financial metrics, driven by increased production:

• Gold production: 1.67 million ounces (+29.46% YoY)
• Adjusted EBITDA: USD 1.97 billion (+110.83% YoY)
• Operating cash flow: USD 1.65 billion (+64.31% YoY)

The company attributed the improved performance to the resumption of operations at Cerro Negro, higher throughput, and enhanced leaching at Yanacocha. Despite a rise in unit costs and a loss on assets held for sale, higher realised gold prices and increased sales volumes contributed to net income growth.

The company is expected to release its fourth quarter and FY24 results on 20 February 2025.

2025 Outlook

Looking ahead, Newmont remains on track to meet its 2024 production guidance, targeting 1.8 million ounces of gold at an All-in Sustaining Cost (AISC) of USD 1,475 per ounce. Meanwhile, production in the fourth quarter is expected to reach annual peaks, supported by improved ore grades at Peñasquito and Tanami, and enhanced throughput at Lihir.

The company expects up to USD 4.3 billion from non-core asset sales. Additionally, a new gold bar partnership will enhance traceable mine-to-market sales.

Share performance of NEM

NEM share price closed 0.71% lower at AUD 66.18 per share on 28 January 2025. Over the past year, NEM’s share price has increased by almost 26.32% and in the last three months, it has decreased by 10.58%.

52-week high of NEM is AUD 87.57, recorded on 23 October 2024 and 52-week low is AUD 45.30, recorded on 28 February 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 28 January 2025. The reference data in this report has been partly sourced from REFINITIV.

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