DENVER - Newmont Corporation (NYSE: NEM), the world's leading gold producer, announced its fourth quarter and full-year 2023 results, revealing a shortfall in gold production compared to analyst estimates. Despite this, the company's revenue for the quarter reached $4B, surpassing the consensus estimate of $3.38B.
The company reported a fourth-quarter EPS of $0.50, which was $0.06 higher than the analyst estimate of $0.44. However, Newmont's attributable gold production for the quarter was below the estimated 7.02 million ounces, contributing to a slight 0.5% dip in share price following the earnings release.
Newmont's President and CEO, Tom Palmer, stated, "2023 was a transformational year for Newmont. With the acquisition of Newcrest now complete, our principal focus for 2024 is to integrate and transform our leading portfolio of Tier 1 assets into a unique collection of the world's best gold and copper operations and projects."
For the full year, Newmont delivered $1.4B in dividends to shareholders and produced 5.5 million gold ounces and 891 thousand gold equivalent ounces from copper, silver, lead, and zinc, in line with revised guidance and incorporating the legacy Newcrest assets from the acquisition close date.
The reported net loss of $2.5B was driven by $1.9B in impairment charges, $1.5B in reclamation charges, and $464M in Newcrest transaction and integration costs. These items are excluded from adjusted earnings results, with the adjusted net income (ANI) for the full year at $1.61 per share and adjusted EBITDA of $4.2B.
Looking ahead to 2024, Newmont announced its production guidance is expected to be approximately 6.9 million gold ounces for the Total Newmont portfolio, underpinned by 5.6 million gold ounces from the Tier 1 Portfolio. Gold costs applicable to sales (CAS) are expected to be $1,050 per ounce, with gold all-in sustaining costs (AISC) of $1,400 per ounce for the Total Newmont portfolio.
The company remains on track to deliver an expected $500M in synergies related to the Newcrest transaction by the end of 2025. The updated Tanami Expansion 2 development capital estimate is $1.7 to $1.8B, with commercial production expected in the second half of 2027.
Newmont's stock movement, down 0.5%, suggests a relatively muted market response to the earnings news, likely due to the mixed results of exceeding revenue expectations but falling short on gold production forecasts.
Investors will be watching closely as Newmont integrates Newcrest's assets and aims to deliver on its commitments and growth projections for the coming years.
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