Newmont Surpasses Profits Expectations for 4Q21
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Newmont Surpasses Profits Expectations for 4Q21

Photo by:   Dariusz Sankowski
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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Mon, 02/28/2022 - 17:57

Newmont, a major global mining operator with a significant presence in Mexico, published its financial and operating results for 4Q21. The company reported an updated full-year guidance with production of 6 million oz of gold and 1.3 million oz AuEq. Despite COVID-19-related spending and a drop in price for gold bullions, the corporation reported profit, as it gears up to invest further in sustainability.

According to the company’s website, Newmont generated US$4.3 billion in revenue from continuing operations and US$2.6 billon of free cash flow, of which 99.8 percent is attributable to Newmont. Over 2021, the company paid US$2.3 million to its shareholders.

The US-based corporation declared a 4Q21 dividend of US$0.55 per share, for a total declared yearly dividend of US$2.20 per share. Newmont said it returned US$1.8 billion through an “industry-leading dividend framework.” In addition, it reported reserves of 93 million oz of gold and 65 million oz AuEq, as well as resources of 101 million oz of gold and 104 million oz AuEq.

Moreover, Newmont announced its 2022 attributable production outlook of 6.2 million oz of gold, potentially improving to between 6.2 and 6.8 million oz annually up to 2026. The company also reported its February 2022 acquisition of Buenaventura’s 43.65 percent interest in Peru’s Minera Yanacocha.

The company’s 2021 highlights further include advanced projects that will be profitable in the near term, including its second Tanami Expansion, Ahafo North and Yanacocha Sulfides. It predicts US$1.4 billion of development CAPEX in 2022.  In addition, Newmont delivered the gold industry’s first Autonomous Haulage System (AHS) fleet in Australia and formed and industry-leading strategic alliance with Caterpillar to achieve zero emissions mining and support reaching greenhouse gas emissions reduction targets. To keep demonstrating its commitment to ESG commitments, the company refinanced its near-term debt with the industry’s first US$1 billion sustainability-linked bond. “Newmont will continue to create long-term value for all of our stakeholders through our clear strategic focus, superior operational performance and unwavering commitment to leading ESG practices,” explained Palmer.  

The business 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. The agency has invested US$20.5 million in community projects, including the Cedros community in Mexico, and created the Newmont Global Center for Indigenous Community Relations, initiating a US$20 million COVID-19 Global Community Support Fund and providing financial support to workers who were unable to work during the pandemic.

On the Environmental side, Newmont seeks to achieve a reduction of more than 30 percent in scope 1, 2 and 3 GHG emissions and their intensity by 2030. Newmont's main goal is to be a net zero company by 2050, 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 our stakeholders from our world-class portfolio of long-life, responsibly managed assets located in top-tier jurisdictions," said Tom Palmer, President and CEO, Newmont.

Photo by:   Dariusz Sankowski

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