Newmont Corp. Q2 Results Driven by Escalated Gold Prices

SEATTLE (Scrap Monster): Denver-headquartered Newmont Corporation announced second quarter 2020 results. The unprecedented surge in gold prices helped the company to generate significant free cash flow during the quarter.

The company reported net income from continuing operations attributable to Newmont stockholders of $412 million or $0.51 per diluted share. The adjusted net income was $261 million or $0.32 per diluted share, compared to $92 million or $0.12 per diluted share in the prior year quarter. Higher average realized gold prices boosted the revenue by nearly 5% to $2.365 billion. Incidentally, the average realized prices of gold surged higher by $407 per ounce over the prior quarter to $1,724 per ounce. The company reported adjusted EBITDA of $984 million and free cash flow of $388 million.

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The restart plans executed at the mines previously in care and maintenance positions the company to deliver an even stronger second half of 2020, said Tom Palmer, CEO, Newmont Corporation. The company plans to spend $45 million every month at its mines in Mexico, Peru and Argentina in order to maintain Covid-19 safety protocols.

The company reaffirmed its latest 2020 production outlook. Its attributable gold production for the current year remains at approximately 6 million ounces. Also, it anticipates production of nearly 1 million gold equivalent ounces from co-products.