Newmont to Significantly Increase Profits and Production in 2021By Paloma Duran | Mon, 07/26/2021 - 09:13
Newmont has published its financial and operating results for 2Q21, showing that it significantly increased its profits. The increase was mainly due to the increase in the price of gold and the resumption of mining activities that were affected by the COVID-19 pandemic.
Gold production increased 15 percent to 1,449Moz compared to 2Q20 production, mainly driven by higher production where operations were reduced due to COVID-19 and higher ore grade milled and higher mill performance in Boddington, Australia. The company's net profit was US$640 million, showing an increase of US$228 million compared to 2Q20 due to higher sales volumes and prices.
During the 2Q21, Newmont generated US$993 million in cash from its operations and US$578 million in free cash flow. It also reduced US$550 million of debt with available cash, published its 2020 Annual Sustainability Report and launched its first Climate Strategy Report, which includes the company’s strategies to achieve its climate strategies.
The company is highly committed to responsible mining, as it firmly believes that the mining of the future needs to have strong and sustainable relationships with communities. Last year, the company invested US$20.5 million in community projects, created the Newmont Global Center for Indigenous Community Relations, initiated a US$20 million COVID-19 Global Community Support Fund and provided financial support to workers who were unable to work during the pandemic.
On the Environmental side, Newmont seeks to achieve by 2030 a reduction of more than 30 percent in GHG emissions (Scope 1 and 2) and their intensity, in addition to reducing Scope 3 emissions by 30 percent. Newmont's main goal is to be a net carbon zero company by 2050, for which it is partnering with key allies and investing in new technologies.
“We have demonstrated our commitment to responsible mining (..). As we move into our next 100 years of mining, we remain focused on delivering value to all of our stakeholders from our world-class portfolio of long-life, responsibly managed assets located in top-tier jurisdictions," said Tom Palmer, President and CEO of Newmont.
Regarding COVID-19, the company stressed it continues to implement protection measures for its workforce and communities. During 2Q21, the company increased its COVID-19 costs by US$20 million for additional security procedures, community funds, and transportation. Newmont seeks to improve vaccine availability and accelerate its administration for its employees and host communities through its Global Community Support Fund.
Newmont expects to increase gold production and investments in its most promising assets throughout 2021. The company assumes that its operations will continue without major disruptions related to COVID-19. However, the company assured that if at any time there is a risk to its employees or communities, it will reduce operations.