Guess which ASX 200 gold stock is crashing on US$2.5b loss

This gold miner's results haven't gone down well with the market.

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The Newmont Corporation (ASX: NEM) share price is ending the week deep in the red.

In morning trade, the ASX 200 gold stock is down 7% to $47.20.

This follows the release of the Newcrest Mining owner's FY 2023 results.

ASX 200 gold stock sold off following results

  • Gold production down 6.8% to 5.55 million ounces
  • All-in sustaining cost (AISC) up 19.2% to US$1,444 an ounce
  • Adjusted EBITDA down 7.3% to US$4,217 million
  • Net loss of US$2.5 billion

What happened during the 12 months?

It was a busy year for Newmont, with the company acquiring Newcrest Mining in FY 2023 for US$16.81 billion.

However, with the deal coming late in the year, it wasn't enough for Newmont to deliver production growth during the 12 months.

Its production was down 6.8% to 5.55 million ounces. Combined with a sizeable increase in its AISC, this led to the company's adjusted earnings dropping meaningfully year on year.

But those earnings were wiped out on a normalised basis by $1.9 billion in impairment charges, $1.5 billion in reclamation charges, and $464 million in Newcrest transaction and integration costs.

This led to Newmont reporting a loss of US$2.5 billion for FY 2023.

Management commentary

The ASX 200 gold stock's CEO, Tom Palmer, highlights that 2023 was transformative for the company. He said:

2023 was a transformational year for Newmont, and for all of our stakeholders. 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.

With stable production and structured reinvestment throughout the year, we are strongly positioned to deliver on our commitments in 2024 and set the stage for meaningful growth in 2025 and beyond.

Outlook

As its CEO revealed above, the company expects its production to return to growth in FY 2024.

Newmont's 2024 production guidance is for approximately 6.9 million gold ounces, underpinned by 5.6 million gold ounces from its Tier 1 portfolio. This is expected to be achieved with an AISC of US$1,400 per ounce.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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