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Highlights

  • The company announced the sale of its Eleonore operation in Canada to Dhilmar Ltd for USD 795 million.
  • In 3QFY24, net income increased 483.5% YoY to USD 922 million.
  • In 4QFY24, the company anticipates producing 1.8 million ounces of gold at an AISC of USD 1,475 per ounce.

Newmont Corporation (ASX:NEM) is a gold production company that is also engaged in the production of silver, lead, zinc and copper. Today (26 November 2024), NEM shared an update regarding the sale of its Eleonore operation in Canada to Dhilmar Ltd, a UK-based private company for cash consideration of USD 795 million. This agreement is part of the company’s strategy to divest its non-core assets. The sale is anticipated to be completed by the first quarter of 2025.

Recent financial performance of NEM

In the third quarter of the financial year 2024 (3QFY24), the company recorded an 84.7% YoY rise in its sales revenue to USD 4,605 million and a 64.3% YoY increase in operating cash flow to USD 1,648 million.During the reported period, net income jumped by a whopping 483.5% to USD 922 million, driven by increasing gold prices and a rise in sales volumes, which were partially offset by higher production costs and other factors.

Outlook

In 4QFY24, the company expects to achieve 1.8 million attributable ounces of gold production at AISC of USD 1,475 per ounce. The forecast aligns with the FY24 gold production guidance.

The company is committed to divesting its non-core assets and using the funds to develop its projects or return them to shareholders.

Over the next few years, the company targets annual sustaining capital spending of nearly USD 1.8 billion, with average development capital investments of USD 1.3 billion to assist expansion and growth.

The company is operating 11 large, long-life managed operations and executing three projects in favourable mining jurisdictions.   

Share Performance of NEM

NEM shares closed 0.54% lower at AUD 64.40 apiece on 26 November 2024. Over the past one year, NEM’s share price has increased by almost 13.06%, while in the last three months, the share price has dropped by 16.08%.

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 26 November 2024. The reference data in this report has been partly sourced from REFINITIV.