Latest news with #ThomasPalmer
Yahoo
6 days ago
- Business
- Yahoo
Newmont Corp (NEM) Q2 2025 Earnings Call Highlights: Record Free Cash Flow and Strategic Share ...
Gold Production: 1.5 million ounces. Copper Production: 36,000 tonnes. Cash Flow from Operations: $2.4 billion. Free Cash Flow: $1.7 billion, a record for the quarter. Divestment Proceeds: Expected $3 billion in after-tax cash proceeds for the year. Debt Reduction: $372 million retired since the last earnings call. Shareholder Returns: Over $1 billion returned through dividends and share repurchases. Share Repurchase Program: Additional $3 billion approved, total authorization now $6 billion. Gold All-In Sustaining Costs: $1,593 per ounce on a co-product basis; $1,375 per ounce on a by-product basis. Adjusted EBITDA: $3 billion. Adjusted Net Income: $1.43 per share. Cash Balance: $6.2 billion at the end of the quarter. Outstanding Debt: $7.4 billion as of June 30. Quarterly Dividend: $0.25 per share. Warning! GuruFocus has detected 8 Warning Signs with NEM. Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Newmont Corp (NYSE:NEM) delivered a strong operational performance in the second quarter, keeping on track to achieve 2025 guidance. The company produced 1.5 billion ounces of gold and 36,000 tonnes of copper, aligning with their four-year guidance. Newmont generated $2.4 billion of cash flow from operations and set a record for quarterly free cash flow at $1.7 billion. The company completed a successful non-core asset divestment program, expecting $3 billion in after-tax cash proceeds this year. Newmont's board approved an additional $3 billion share repurchase program, doubling the total authorization to $6 billion. Negative Points Two fall of ground incidents at the Red Chris operation in British Columbia have suspended operations and impacted underground communication systems. Production is expected to decrease in the second half of the year at several sites, including Cadia and Penasquito, due to transitioning to new mining areas. Higher sustaining capital expenditures are anticipated in the second half of the year, impacting free cash flow. The departure of Chief Financial Officer Karyn Ovelmen was unexpected, leading to an interim CFO appointment. There are ongoing challenges with stabilizing operations at certain sites, such as Lihir, which requires further asset management and reliability improvements. Q & A Highlights Q: Can you discuss Newmont's capital allocation priorities, particularly regarding acquisitions and the strategic importance of copper? A: Thomas Palmer, CEO, emphasized that Newmont's focus is internal, prioritizing buying back Newmont stock as the best use of capital. Copper remains a strategic metal, with existing copper-producing assets and a strong organic project pipeline, including the Red Chris block cave, which will contribute to the copper balance in the portfolio. Q: With the recent management changes, particularly the departure of CFO Karyn Ovelmen, are there any implications for succession planning or other management roles? A: Palmer acknowledged the unfortunate timing of Ovelmen's departure but expressed confidence in the existing finance team led by Interim CFO Peter Wexler. He highlighted Natascha Viljoen's promotion to President and COO as part of Newmont's ongoing leadership development, emphasizing no immediate changes in succession planning. Q: Can you provide insights into the expected production decline at Cadia and Penasquito in the third quarter? A: Natascha Viljoen, COO, explained that Penasquito will see lower gold grades and higher silver, lead, and zinc grades due to natural mine sequencing. At Cadia, the transition to new panel caves will initially result in lower grades, but production is expected to ramp up steadily. Q: How is Newmont managing cost containment, and what are the trends in the underlying cost structure, including inflation rates? A: Palmer noted that cost trends are consistent with expectations set at the beginning of the year, with no significant surprises. The company is focused on productivity improvements and cost structure enhancements, despite meeting current cost expectations. Q: Regarding the Red Chris incident, what are the current efforts to ensure the safety of the workers and restore operations? A: Palmer detailed that after the initial fall of ground, workers were safely relocated to a refuge chamber. Efforts are focused on re-establishing communication and determining the safest rescue plan, with support from the broader industry. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
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
