Newmont has reported a surge of about 483% in its net income for the third quarter of 2024 (Q3 2024) to $922m, compared to $158m posted in the corresponding quarter of the previous year.
In the preceding quarter, that is Q2 2024, the American gold mining company’s net income was $853m.
The company’s net income increase is attributed to higher average realised gold prices and increased sales volumes.
For the reported quarter ended 30 September 2024, Newmont’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) were in line with the prior quarter at $2bn.
Newmont also produced 1.7 million attributable gold ounces in the reported quarter, primarily driven by 1.4 million ounces from its Tier 1 portfolio. Additionally, it produced 430,000 gold equivalent ounces from copper, silver, zinc, and lead, including 37,000 tonnes of copper.
The growth in gold production was primarily driven by higher output at the Cerro Negro mine in Argentina following a full quarter of resumed operations.
Besides, the production saw gains from increased throughput at the Brucejack mine in Canada, improved mill utilisation at the Ahafo mine in Ghana after the girth gear replacement, and enhanced production at the Yanacocha mine in Peru.
Newmont’s sales for the third quarter were $4.6bn, an increase of 84% compared to $2.5bn in Q3 2023.
The company generated $1.6bn in cash from operating activities and reported $760m in free cash flow for Q3 2024.
Newmont president and CEO Tom Palmer said: “In the third quarter, Newmont delivered 2.1 million gold equivalent ounces and generated $760m in free cash flow from our world-class portfolio.
“We continue to make meaningful progress on our non-core divestment program with the two transactions announced in the quarter, which are expected to deliver up to $1.5bn in combined gross proceeds.
“Our divestiture progress and strong free cash flow generation have positioned us to continue reducing debt and repurchasing shares, creating significant and lasting value for our shareholders.”
Newmont expects Q4 2024 production to be the highest of the year, mainly due to the improved grades at the Peñasquito and the Tanami operations and enhanced throughput at the Lihir mine.
The ongoing sequential improvements from its non-managed joint venture at Nevada Gold Mines are also expected to contribute to improved production.
