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Newmont focus on shareholder returns as cash grows

Newmont reported a 7% fall in net income from continuing operations in 2020 to US$2.7 billion compared with $2.9 billion in 2019 while generating $3.6 billion of free cash flow.
Newmont focus on shareholder returns as cash grows Newmont focus on shareholder returns as cash grows Newmont focus on shareholder returns as cash grows Newmont focus on shareholder returns as cash grows Newmont focus on shareholder returns as cash grows

Newmont's Tanami mine in Australia

The company achieved guidance with production of 5.9 million ounces of gold and more than 1Moz of gold-equivalent co-products, although this was a 6% fall in output from 2019 primarily due to Yanacocha in Peru and Cerro Negro in Argentina being placed into care and maintenance in response to the COVID-19 pandemic, lower ore grades mined at Ahafo in Ghana, and the sale of Red Lake and Kalgoorlie in Canada and Australia, respectively.

Newmont's an all-in sustaining cost increased 8% to $1,045/oz due to higher costs and COVID-19-related care and maintenance costs.

Newmont guided production of 6.5Moz for 2021, between 6.2 and 6.7moz through 2023 and between 6.5 and 7Moz through 2025. The company reported reserves of over 94Moz and resources of 65Moz.

Newmont ended the year with $5.5 billion of cash and declared a fourth quarter dividend of 55 cents per share, a 38% increase over the prior quarter and bringing its total dividend for 2020 to $1.45 per share. The company also completed a $1 billion share-repurchase programme in 2020 and announced a new $1 billion share-repurchase programme.

Newmont's project pipeline sees the Tanami expansion in Australia approved and under execution while the Ahafo North and Yanacocha Sulphides projects in Ghana and Peru are scheduled to be approved for full funding in 2021.

Shares in Newmont are trading at $56.99, valuing the company at $46 billion.