Newmont Corporation (NYSE:NEM) shares are trading higher after the company reported first-quarter FY24 results.
Revenue reached $4.023 billion, above the consensus of $3.670 billion.
Gold production fell 4% Y/Y to 1.675 million ounces due to lower output at Tanami on planned mill shutdown and seasonal rainfall impacts and the ongoing stripping campaigns at Boddington and Akyem.
Also Read: Newmont’s Ghana Gold Mine Sale Targets $2B, Attracts Chinese Giants
Gold Costs Applicable to Sales (CAS) stood at $1,057 per ounce, and gold All-In Sustaining Costs (AISC) came in at $1,439 per ounce.
Adjusted EBITDA rose 23% Q/Q to $1.694 billion in the quarter. Adjusted EPS of $0.55, beating the consensus of $0.36.
Capital expenditure decreased 8% Q/Q to $850 million, and operating cash flow rose 26% from the prior quarter to $776 million.
As of March 31, 2024, Newmont had cash and cash equivalents of $2.34 billion.
Dividend: The company declared a dividend per share of $0.25 for the first quarter of FY24, payable on June 27 to shareholders of record on June 4.
FY24 Outlook: The company reaffirms its outlook for gold production of around 6.9 million ounces and Gold AISC of $1,400 per ounce.
Newmont expects Tanami Expansion 2 development capital spending of $1.7 billion-$1.8 billion, with commercial production expected in the second half of 2027.
The company delivered $105 million in synergies to-date related to the Newcrest transaction and is on track to deliver an expected $500 million in synergies by the end of 2025.
Also Read: Gold Miner Newmont Looks To Sell Assets, Reduce $8B Debt Load
Investors can gain exposure to the stock via IShares MSCI Global Gold Miners ETF (NASDAQ:RING) and VanEck Gold Miners ETF (NYSE:GDX).
Price Action: NEM shares are up 11.4% at $43.01 at the last check Thursday.
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