Monday, 24 June

Newmont achieves 2022 guidance, provides stable 2023 and improving longer-term outlook, declares $0.40 Q4 dividend


Newmont Corporation has announced fourth-quarter and full-year 2022 results, as well as its 2023 and longer-term outlook.

It produced 6.0 million gold ounces and 1.3 million gold equivalent ounces from copper, silver, lead and zinc; and achieved original production guidance range set in December 2021.

Also, gold all-in sustaining costs were $1,211 per ounce, in-line with updated guidance range despite global cost pressures throughout the year.

The miner generated $1.1 billion in free cash flow after $2.7 billion of meaningful reinvestment into the business to advance our most profitable near-term projects.

Newmont said it “safely” delivered on its commitments and remained focused on fatality risk management, for which it was recognised as the Top Miner in the 2022 Dow Jones Sustainability Index for our unwavering commitment to leading ESG practices.

It further announced 2023 and longer-term outlook underpinned by strong gold production and improving costs.

It said as previously signaled, 2023 production guidance is expected to be between 5.7 and 6.3 million gold ounces. It steadily improves in the longer-term, driven by strong production from world-class assets and an unmatched project pipeline.

It said gold all-in sustaining costs are expected to be between $1,150 and $1,250 per ounce in 2023.

Newmont incorporated an additional 3% of cost inflation compared to 2022, which is expected to be largely offset by full potential cost efficiencies.

It intends to sustain capital spend of $1.0 to $1.2 billion in 2023, which is expected to remain steady across the five-year period.

It projects development capital spend of $1.2 to $1.4 billion in 2023, a meaningful reinvestment to strengthen its global portfolio.

2023 Dividend Payout Range Established Within Industry-Leading Framework

Newmont announced a sustainable base dividend of $1.00 per share at base reserves price of $1,400 per ounce.

It also announced an incremental dividend payout of $0.40 to $0.80 per share, calibrated at $1,700 per ounce and incorporating free cash flow impacts from industry-wide inflationary pressures and a period of meaningful reinvestment.

Annualised dividend payout ranges from $1.40 to $1.80 per share, subject to quarterly approval by the Board of Directors.

It declared fourth-quarter 2022 dividend of $0.40 per share, set at the midpoint of the 2023 dividend payout range.

Mr Tom Palmer, President and Chief Executive Officer of Newmont, said: "Newmont safely delivered on our commitments in 2022 and finished the year from a position of strength, meeting our full-year production guidance and generating $4.6 billion in adjusted EBITDA and $1.1 billion in free cash flow”.

“As we look ahead to 2023 and beyond, we expect to steadily increase production and improve costs from our balanced, global portfolio of world-class assets and robust project pipeline”.

“We remain committed to our disciplined and balanced approach to capital allocation, allowing us to maintain an investment-grade balance sheet while steadily reinvesting in the business and providing superior returns to shareholders through our industry-leading dividend framework. With more than 100 years of history and experience, Newmont is well-positioned to continue safely delivering industry-leading results, while remaining grounded in our values and driven by our purpose to create value and improve lives through sustainable and responsible mining."