Newmont Corporation ended 2022 with a mixed fourth-quarter performance. The company generated $3.2 billion in revenue in Q4 and started Q1 with a $2.7 billion of revenue. The company had witnessed increased sales volumes and robust gold prices last year. Despite historically high and industry-wide inflationary pressures, they achieved strong profitability in Q1 following an astounding $4.6 billion EBITDA for 2022 and this resulted in an earnings beat in Q1. Newmont improved the coaching and development of its frontline leaders to improve the effectiveness of its important control verifications. Mining occurred predominantly from Chile, and Colorado Pit, leading to lower gold grades and greater silver and zinc content levels. They anticipate this mining pattern and trend will persist at their 2-pit polymetallic mine. Porcupine had its best quarter of the year, and yearly production may slightly improve in 2023 due to higher tonnes mined and higher grades. The company continues to work on replacing production from the Hollinger pit with a layback of the Pamour pit. They also kept moving forward with Tanami’s expansion. Overall progress is now at 50%, with engineering and procurement effectively completed, shielding the project from further inflationary or supply chain issues. We give Newmont Corporation a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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