The Newmont Corp (ASX: NEM) share price has slipped into the red from the open on Thursday after the company posted its Q3 2024 earnings update.
Shares in the gold miner are currently fetching $81.37 apiece, down 6.8% at the time of writing as investors react to the results.
Zooming out, the stock is up 33.8% this year to date, as gold extends its rally to set new highs above US$2,700 per ounce this week. Here's a closer look.
Newmont share price down 6% on mixed Q3 results
Newmont's Q3 2024 update delivered some positives but also revealed challenges that weighed on its share price:
- Gold production was 1.7 million attributable ounces, up 4% from the prior quarter.
- Revenue came to US$2.6 billion, with an average realised gold price of US$2,518 per ounce.
- Net income of US$922 million, translating to $0.81 per diluted share. This is up from $834 million in the previous quarter.
- All-in-sustaining costs (AISC) rose to US$1,611 per ounce, driven by increased direct costs at key sites.
- Free cash flow reached US$760 million, up 28% from Q2, but still impacted by higher capital expenditures.
What else happened in Q3?
The Newmont share price was strong in the quarter, backed by the company's fundamentals. The goldminer continued its divestment strategy, announcing agreements to sell its Akyem mine in Ghana and the Telfer mine in Australia.
The sales could bring in up to US$1.5 billion.
On the production front, the gold miner produced 1,688 ounces, up 4% on the previous quarter. Management is eyeing greater production numbers in Q4.
Newmont also pushed forward with share buybacks, repurchasing 9.4 million shares since the last earnings release.
The board also authorised a new US$2 billion buyback program, which it looks to complete over the coming two years.
Newmont also announced a dividend of 25 cents per share dividend. Combined, the company returned US$786 million to shareholders during the quarter.
This could impact the Newmont share price going forward.
What did management say?
Newmont president and CEO Tom Palmer highlighted the company's strategic progress, stating:
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 $1.5 billion 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.
What's next?
Looking ahead, Newmont is targeting a strong finish in the fourth quarter of 2024. The company expects to produce 1.8 million ounces of gold at an AISC of US$1,475 per ounce.
Additionally, ongoing capital projects, including expansions at Tanami and Ahafo, are expected to support future production growth.
It also looks to produce 35 kilotonnes of copper and 11 million ounces of silver in the final quarter of the year as well.
At this stage, it sees consolidated expenditures of $110 million and $115 million of exploration and advancement projects.
Newmont share price snapshot
Investors have sold down the Newmont share price following the company's Q3 numbers — possibly they were expecting more from the miner.
The stock is up nearly 37% in the past year.
