The Newmont Corporation (ASX: NEM) share price is catching attention on Thursday after the company released its Q2 2024 earnings report.
In it, the gold miner reported strong cash flows and a higher average realised gold price. The Newmont share price is currently up 1.75% at $72.65.
Let's take a look at the company's second-quarter numbers.
Newmont share price higher as cash flows rise
- Produced 1.6 million attributable gold ounces
- Generated US$1.4 billion in operating cash flow, up 113% from US$656 million in Q2 2023
- Reported net income came to US$857 million for the quarter
- Generated US$594 million in free cash flow after US$236 million in working capital changes
- Declared a quarterly dividend of US$0.25 per share
What else happened in Q2 2024?
Newmont reported strong performance in Q2 2024 with significant improvements across several key financial metrics.
The company booked a net income of US$857 million, up from US$266 million in the prior corresponding period. Higher average prices for gold, copper and zinc drove this result.
Average realised gold prices were US$2,347 per ounce during the quarter, up US$257 per ounce over the last year.
The company produced 1.6 million attributable ounces at this price, with an all-in sustaining cost (AISC) of US$1,562 per ounce.
As a result, cash flows from operations were up a staggering 113% year over year to US$1.4 billion.
Meanwhile, the gold miner threw off US$594 million in free cash flow after all reinvestments were made back into the business, up from a negative $74 million in the previous quarter.
Newmont also made progress in its divestiture program, announcing the monetization of Batu Hijau contingent payments and expecting $153 million in cash proceeds this quarter.
Additionally, the company bought back 5.7 million shares, totalling $250 million, and reduced its nominal debt by $250 million.
What did management say?
Tom Palmer, Newmont's CEO, was pleased with the "solid" quarter:
Newmont delivered a solid second quarter, producing 2.1 million gold equivalent ounces and generating $594 million in free cash flow.
We continued to advance our divestiture program and, to date, have announced $527 million in proceeds this year. With this momentum, we completed $250 million in share repurchases and repaid $250 million in debt.
Palmer also noted the company's position leading into the end of the year:
As we head into the second half of the year, we remain confident in our ability to continue executing on shareholder returns, meet our full-year guidance and deliver on our commitments."
What's next?
Looking ahead, Newmont expects its full-year production to be weighted towards the second half, with an increase in production in the fourth quarter.
It expects to produce 6,390Koz of gold on a US$1,400 AISC.
Newmont also left the quarter with $2.6 billion in cash and $6.8 billion in overall liquidity available to fund its operations going forward.
As CEO Tom Palmer explained, the company looks on track to deliver its 2024 guidance for production, costs, and capital expenditure.
With gold prices surging in 2024, it's no wonder investors are biting on the Newmont share price today.
Newmont share price snapshot
Over the past 12 months, the Newmont share price is up 22%.
It has rallied 20% this year to date, with a strong showing since we entered the new financial year.
