Q1 2020: Newmont bags $1.4bn in cash from sale of KCGM, Continental Gold


In the first quarter of 2020, Newmont said it produced 1.5 million attributable ounces of gold and reported CAS of $781 per ounce and AISC of $1,030 per ounce.

The mining giant said also that it produced 339 thousand attributable gold equivalent ounces from co-products

Additionally Newmont generated $939 million of cash from continuing operations and $611 million of Free Cash Flow and also received $1.4 billion in cash proceeds from the sale of KCGM, Continental Gold and Red Lake

It Refinanced $1.0 billion of outstanding debt at historically low coupon of 2.25 percent, Executed ~$300 million of share repurchases at average price of $45 with 80 percent of $1 billion buyback program now complete. Reported $3.7 billion of consolidated cash with $6.6 billion of liquidity and a net debt to pro forma adjusted EBITDA* ratio of 0.7x.

Declared first quarter dividend of $0.25 per share, an increase of 79 percent over prior year quarter

“We are responding to COVID-19 from a position of strength, taking proactive steps to prioritize the well-being of our employees and the communities in which we operate. These unprecedented times further highlight the importance of a proven operating model, talented workforce and the ability to adapt to dynamic circumstances quickly and with care for all stakeholders,” said Tom Palmer, President and Chief Executive Officer.

“Our world-class diversified portfolio of assets and resilient team delivered solid first quarter performance with $1.1 billion in adjusted EBITDA and $611 million in free cash flow. Our robust balance sheet provides us with significant financial flexibility to continue allocating capital where it is needed most during this time of uncertainty, while maintaining our industry-leading returns to shareholders.”

Regarding measures to deal with COVID-19, Newmont said fully mobilized rapid response crisis management teams and business continuity plans and are working closely with host and indigenous communities, regional and national governments and medical experts to protect Newmont’s workforce and nearby communities

Implemented wide-ranging controls at the Company’s operations and offices to put the health, safety, and overall wellbeing of Newmont’s people and communities above all else, including significantly minimized staffing levels at the Company’s operations

Established global supply chain task force to assess potential risks and develop viable contingency plans

Two operations temporarily in care and maintenance while sites representing approximately 90 percent of the Company’s planned 2020 production are operating

Established $20 million Global Community Support Fund focused on employee and community health, food security and local economic resilience through partnerships with local governments, medical institutions, charities and non-governmental organizations to address the greatest needs.

Source: Laudbusiness.com/Ghana


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