Newmont Corporation (NEM.N) Surpasses Earnings Expectations Despite Revenue Shortfall in Q1 2024

Key Points

• Newmont Corporation (NEM) reported a Q1 2024 EPS of $0.55, beating estimates but missed revenue forecasts with $4.02 billion.
• The company saw a significant increase in gold production and maintained cost efficiency, contributing to a strong operational performance.
• Newmont is focusing on strategic asset divestitures and cost reduction, maintaining positive production forecasts for 2024.

In this news

In a surprising turn of events, Newmont Corporation (NEM), the world's largest gold miner, reported a significant beat on earnings per share (EPS) for the first quarter of 2024, despite a notable miss in revenue expectations. The company announced an EPS of $0.55, comfortably surpassing the analyst estimate of $0.49. However, the revenue for the same period was reported at $4.02 billion, falling short of the expected $5.03 billion, marking a 20.02% decrease from the forecast.

Despite the revenue shortfall, Newmont Corporation (NEM) demonstrated robust operational performance, with a substantial increase in gold production and effective cost management. The company's quarterly attributable gold production surged to 1.7 million ounces from 1.3 million ounces in the previous year, supported by higher gold prices and lower operating expenses. This operational efficiency contributed to a 38% rise in EPS compared to the previous year and enabled the company to maintain healthy profit margins.

Looking ahead, Newmont Corporation (NEM) remains optimistic about its future prospects. The company has maintained its 2024 forecasts, expecting to produce 6.9 million ounces of gold at an All-In Sustaining Cost (AISC) of $1,400 per ounce. Additionally, the strategic decision to divest non-core assets and reduce the workforce as part of a broader cost-cutting initiative post the acquisition of Australian miner Newcrest for approximately $17 billion, positions Newmont to enhance its financial flexibility and focus on its core operations.