NEWMONT Corp /DE/ SEC 10-K Report

Newmont Corporation, a leading gold and copper producer, has released its 2024 Form 10-K report, showcasing significant improvements in financial performance, strategic initiatives, and operational highlights. The report also outlines the challenges and risks the company faces in the current market environment.

Financial Highlights

Newmont Corporation reported robust financial performance for 2024, driven by increased sales and improved operational efficiencies:

• Sales: $18,682 million, an increase of $6,870 million compared to 2023, primarily due to higher gold and copper sales, with significant contributions from sites acquired in the Newcrest transaction.
• Net income (loss) from continuing operations attributable to Newmont stockholders: $3,280 million, compared to a loss of $2,521 million in 2023, driven by higher average realized prices for all metals and lower impairment charges.
• Net income (loss) from continuing operations attributable to Newmont stockholders per common share, diluted: $2.86, compared to a loss of $3.00 in 2023, reflecting improved financial performance.
• EBITDA: $7,528 million, a significant increase from $320 million in 2023, reflecting improved operational performance and contributions from the Newcrest acquisition.
• Adjusted EBITDA: $8,675 million, up from $4,215 million in 2023, highlighting the impact of higher metal prices and operational efficiencies.

Business Highlights

Newmont's operational performance in 2024 was marked by increased production and strategic acquisitions:

• Revenue Segments: Newmont's revenue is primarily driven by gold, with significant contributions from copper, silver, lead, and zinc. The company operates across various regions, including the U.S., Canada, Mexico, Peru, Suriname, Argentina, Australia, Papua New Guinea, and Ghana.
• Geographical Performance: In 2024, Newmont saw increased gold production in regions like Peñasquito, Mexico, due to higher mill throughput and ore grade. Conversely, production decreased in areas like Boddington, Australia, due to lower ore grade milled and mill throughput.
• Sales Units: In 2024, Newmont produced 6,545 thousand ounces of consolidated gold, with significant increases in copper production at sites like Red Chris and Cadia. Peñasquito also saw a substantial increase in silver, lead, and zinc production.
• New Production Launches: Following the acquisition of Newcrest Mining Limited, Newmont integrated new sites, enhancing its production capacity and geographical footprint.
• Future Outlook: Newmont plans to divest six non-core assets and a development project to optimize its portfolio. The company is also focused on achieving its 2030 climate targets, aiming for a 32% reduction in Scope 1 and 2 GHG emissions and a 30% reduction in Scope 3 emissions by 2030, with a goal of carbon neutrality by 2050.

Strategic Initiatives

Newmont Corporation has undertaken several strategic initiatives to enhance its portfolio and financial position:

• Business Combination: Newmont completed a business combination with Newcrest Mining Limited, enhancing its portfolio and operational capabilities.
• Portfolio Optimization: The company initiated a program to divest six non-core assets and a development project, aiming to streamline operations and focus on core assets.
• Development Projects: Newmont is advancing key development projects such as Tanami Expansion 2, Ahafo North, and Cadia Panel Caves, funded from existing liquidity and future operating cash flows.
• Capital Management: Newmont increased its revolving credit facility to $4 billion and issued $2 billion in unsecured Senior Notes to strengthen its financial position. The company authorized a $1 billion stock repurchase program in February 2024, followed by an additional $2 billion program in October 2024, to return value to shareholders. Newmont declared a dividend of $0.25 per share in February 2025, reflecting its commitment to shareholder returns. The company also redeemed $483 million of certain Senior Notes, optimizing its debt structure.
• Future Outlook: Newmont plans to continue its disciplined capital allocation strategy, focusing on self-funding development projects and strategic partnerships for profitable growth. The company aims to maintain financial flexibility to manage potential macroeconomic pressures and supply chain disruptions. Newmont is also prioritizing the completion of its key development projects, with expected commercial production dates ranging from 2025 to 2027, and is evaluating strategic priorities to ensure long-term value creation for shareholders.

Challenges and Risks

Newmont faces several challenges and risks that could impact its operations and financial performance:

• Market Risks: The company faces significant risks related to fluctuations in the prices of gold, copper, silver, lead, and zinc, which are beyond its control and can materially impact revenues and profitability. The company does not engage in hedging transactions, increasing its exposure to price volatility.
• Operational Risks: The company may face challenges in replacing depleted reserves, which is critical for maintaining production levels. Exploration is speculative and may not result in new operations, and acquisitions of reserves are subject to uncertainties and competition. Estimates of proven and probable reserves are uncertain and may require revisions due to changes in metal prices, operating costs, or other factors, potentially leading to write-downs.
• Inflation and Cost Risks: Increased costs due to inflation, particularly in countries like Argentina, Suriname, and Ghana, which have experienced high inflation rates, pose a risk. Mine closure and reclamation costs may exceed provisions due to changes in environmental laws and regulations.
• Reputational Risks: The company faces reputational risks from environmental, social, and governance (ESG) issues, which can impact investor confidence and community relations.
• Cybersecurity Risks: Cybersecurity threats pose a risk to the company's information and operational technology systems, with potential impacts on production and data integrity. The company does not carry specific cybersecurity insurance, increasing its vulnerability to cyber incidents.
• Foreign Exchange Risks: The company is exposed to foreign exchange fluctuations, particularly in currencies like the Australian Dollar and Canadian Dollar, which can impact costs and earnings. Capital controls in countries like Argentina and PNG may affect the availability of local currency and the repatriation of capital, posing additional financial risks.

SEC Filing: NEWMONT Corp /DE/ [ NEM ] - 10-K - Feb. 20, 2025