Latest news with #Lihir
Yahoo
24-04-2025
- Business
- Yahoo
Newmont Corp (NEM) Q1 2025 Earnings Call Highlights: Record Cash Flow and Strategic Divestments
Gold Production: 1.5 million ounces. Copper Production: 35,000 tonnes. Free Cash Flow: $1.2 billion, a record for the first quarter. Cash Flow from Operations: $2 billion, a first-quarter record. Adjusted EBITDA: $2.6 billion. Adjusted Net Income: $1.25 per diluted share. Gold All-In Sustaining Costs: $1,651 per ounce. Divestment Proceeds: More than $2.5 billion in after-tax cash proceeds this year. Debt Reduction: $1 billion repaid since the start of the year. Share Repurchases: $755 million so far this year. Cash Balance: $4.7 billion at the end of the quarter. First Quarter Dividend: $0.25 per share. Warning! GuruFocus has detected 8 Warning Signs with NEM. Release Date: April 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Newmont Corp (NYSE:NEM) reported a record first quarter free cash flow of $1.2 billion, driven by strong operational performance and favorable gold prices. The company successfully completed its divestment program, generating over $2.5 billion in after-tax cash proceeds this year, which strengthens its balance sheet. Newmont Corp (NYSE:NEM) achieved a notable decrease in the frequency of significant potential safety events, reflecting improvements in its safety culture. The company is on track to meet its full-year guidance, with first-quarter production of 1.5 million ounces of gold and 35,000 tonnes of copper. Newmont Corp (NYSE:NEM) has completed approximately $2 billion in share repurchases from its $3 billion program, demonstrating a commitment to returning capital to shareholders. The company anticipates increased working capital needs in the second quarter due to the timing of cash tax and interest payments. Newmont Corp (NYSE:NEM) expects sustaining capital expenditures to increase in the second quarter, particularly at Cadia, which may impact cash flow. The divestment of noncore assets means future financial results will no longer include production and associated free cash flow from these operations. There is ongoing uncertainty regarding tariffs and their potential impact on the company's cost structure, particularly in consumables and labor. The company is in an investment cycle with higher unit costs, and there is a focus on improving margins and leveraging the full strength of its portfolio. Q: Lihir's cash costs dropped significantly this quarter. How should we think about the cash cost profile there, and are you surprised by the cost levels you're achieving? A: Thomas Palmer, CEO: Our focus at Lihir is on configuring the mine to sustainably work through Phase 14A. We completed significant shutdowns last year, including rebuilding autoclave 4. Karyn Ovelmen, CFO: There was a $100 million impact from inventory adjustments, which is non-cash and will normalize over the year. We expect Lihir to meet its full-year cost guidance. Q: Can you provide commentary on the pace of share buybacks? Will it be front-half weighted due to asset divestitures? A: Karyn Ovelmen, CFO: We are continuing with the share buyback program, supported by cash build and proceeds from divestitures. With the elevated gold price, we will continue share buybacks throughout the year and into next year. Q: With gold prices near record highs, how does this affect your business management? A: Thomas Palmer, CEO: We are focused on delivering safety, cost, and productivity performance irrespective of the gold price. Our priority is to realize the potential of our 11 managed operations and projects, such as commissioning Ahafo North and advancing Cadia's block caves. Q: What are the major projects you might consider for investment in the next 12 months? A: Thomas Palmer, CEO: Red Chris is in a prime position, with a feasibility study underway. We are also engaging with local governments for permits. Our development capital is fully consumed with current projects, but as Ahafo North ramps up, we may consider new projects. Q: How are tariffs impacting your cost structure, particularly consumables and labor? A: Thomas Palmer, CEO: Labor costs are consistent with budgeted amounts. For consumables, we see some upward pressure on grinding media due to steel prices, mixed trends in ammonia and cyanide costs, and flat explosives costs. Energy costs are benefiting from lower oil prices. Overall, costs are consistent with our assumptions for the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
21-02-2025
- Business
- Yahoo
Newmont Corp (NEM) Q4 2024 Earnings Call Highlights: Record Cash Flow and Strategic Divestments ...
Release Date: February 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Newmont Corp (NYSE:NEM) exceeded its production guidance by delivering 6.8 million ounces of gold and over 150,000 tonnes of copper in 2024. The company generated a record free cash flow of $1.6 billion in the fourth quarter, driven by strong gold prices and higher sales volumes. Newmont Corp (NYSE:NEM) successfully completed its divestment program, selling six non-core operations, which is expected to result in $2.5 billion in cash proceeds. The company maintained a strong balance sheet with over $3.6 billion in cash and $7.7 billion in liquidity, while retiring $1.4 billion in debt. Newmont Corp (NYSE:NEM) returned $2.3 billion to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder returns. The integration of acquired assets like Cadia and Lihir faced challenges, requiring significant investment to realize their full potential. All-in sustaining costs are expected to rise to $1,620 per ounce in 2025 due to sustaining capital investments and macroeconomic factors. The company is undergoing an investment cycle that will keep sustaining capital at elevated levels over the next few years. Newmont Corp (NYSE:NEM) is carrying unacceptably high G&A costs, which are expected to decrease as the company transitions to a smaller portfolio of managed operations. The company provided only one-year guidance for 2025, focusing on stabilizing the business, which may leave investors seeking more long-term visibility. Warning! GuruFocus has detected 4 Warning Signs with NEM. Q: Can you discuss the recent debt reduction and divestments, and how they impact your gearing and debt targets going forward? A: Karen Sullivan, CFO: Our capital allocation strategy remains unchanged. We aim to maintain a strong balance sheet with around $3 billion in cash and debt below $8 billion. We are steadily funding our cash-generative projects with $1.8 billion in sustaining capital and $1.3 billion in development capital. We also continue to return capital to shareholders through dividends and share repurchases. Q: What is the status of your growth projects, and when can we expect updates on them? A: Tom Palmer, CEO: Our focus is on delivering the three projects currently in execution with a $1.3 billion spend. We have exciting projects in the pipeline, such as Red Chris and Yanacocha sulfides, which are undergoing feasibility studies and permitting. We aim to bring these projects online once we complete our current commitments. Q: Can you explain the difference between your reserve price assumption and your cost guidance? A: Tom Palmer, CEO: We set our reserve price based on a rigorous annual process considering the three-year trailing average price and analyst forecasts. Our cost guidance reflects current operational realities, including significant investments in sustaining capital and macroeconomic factors. We aim to reduce costs and improve productivity to align with our Tier 1 asset portfolio. Q: Why are your G&A costs expected to be high in 2025, and how will they change in the future? A: Tom Palmer, CEO: Our G&A costs are currently elevated due to the integration of Newcrest and ongoing divestments. As we complete these processes and reduce our portfolio to 11 managed operations, we expect G&A costs to decrease significantly, aligning with our streamlined operations. Q: What is your approach to providing guidance, and will you return to longer-term forecasts? A: Tom Palmer, CEO: After a year of transformation, our focus is on stabilizing the business and delivering high-confidence guidance for 2025. We are working to understand the full potential of our portfolio and will provide more detailed guidance for 2026 and beyond once we have a clearer picture. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Associated Press
10-02-2025
- Business
- Associated Press
NEM Investors Have Opportunity to Lead Newmont Corporation Securities Fraud Lawsuit
Why: Rosen Law Firm, a global investor rights law firm, announces that a shareholder filed a class action on behalf of purchasers of securities of Newmont Corporation (NYSE: NEM) between February 22, 2024 and October 23, 2024. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than April 1, 2025. So what: If you purchased Newmont Corporation securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. What to do next: To join the Newmont Corporation class action, go to or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than April 1, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. Details of the case: According to the lawsuit, during the Class Period, defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning Newmont's ability to deliver increased gold production at its Tier 1 operations, specifically, Lihir and Brucejack, in addition to lowering overall costs throughout its mining operations. When the true details entered the market, the lawsuit claims that investors suffered damages. To join the Newmont Corporation class action, go to or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. Attorney Advertising. Prior results do not guarantee a similar outcome. Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653
