Newmont’s Adjusted Profit Rises 12.8% in Q2, Beats Estimates

Newmont Mining (NGT) reported a higher profit than expected in its second quarter. The world’s largest gold producer benefited from the slightly higher prices of the precious metal.

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Revenue came in at $3.07 billion for the quarter ended June 30, an increase of 29.5% from $2.37 billion in the prior-year quarter. Attributable gold production increased to 1.45 million ounces from 1.26 million ounces, while all-in sustaining costs fell year-over-year to $1,035 per ounce from $1,097. The average realized price of gold jumped 4.1% to $1,823 per ounce in the quarter.

Meanwhile, adjusted profit amounted to $670 million ($0.83 per share) in Q2 2021, an improvement from $594 million ($0.74 per share) in Q2 2020. Analysts on average expected earnings of $0.78 per share, according to data from Refinitiv IBES.

Newmont President and CEO Tom Palmer said, “Capitalizing on the strength of our assets and integrated operating model, Newmont delivered a solid second quarter performance with $1.6 billion in adjusted EBITDA and $578 million in free cash flow. Our performance and disciplined approach to capital allocation allowed Newmont to declare a second quarter dividend of $0.55 per share, whilst we continue to reinvest in our business through our most profitable projects. 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.”

The board declared a quarterly dividend of $0.55 per share. (See Newmont Mining stock charts on TipRanks)

Last week, RBC Capital analyst Josh Wolfson maintained a Hold rating on NGT and set a price target of $68 (C$86). This implies 14% upside potential.

Overall, consensus on the Street is that NGT is a Strong Buy based on 6 Buys and 2 Holds. The average Newmont Mining price target of C$92.70 implies an upside potential of about 24% to current levels.