Yesterday, Newmont released results demonstrating continued strong performance through the first quarter of 2016.
Compared to the first quarter of last year, we reduced injury rates by 37 percent, lowered gold all-in sustaining costs (AISC) by 2.5 percent to $828 per ounce, and increased production by four percent to 1.23 million ounces. These results reflect a 30 percent reduction in AISC since 2012.
“Newmont delivered another solid quarter, generating adjusted EBITDA of more than $800 million and free cash flow of $227 million on the back of strong operating performance,” said Gary Goldberg, President and Chief Executive Officer. “We strengthened our balance sheet with the sale of Regis for $184 million and a successful $500 million debt tender. We’re also adding profitable production as CC&V and the Leeville underground mines continue to ramp up. Merian is about 80 percent complete and will further improve portfolio costs and production as the operation comes on line in the fourth quarter.”
Highlights from the first quarter of 2016 included:
- Improving gold AISC to $828 per ounce compared with $849 per ounce in the prior year quarter, and copper AISC to $1.33 per pound compared to $1.73 per pound in the prior year quarter
- Producing 1.23 million ounces and 38,000 tonnes of attributable gold and copper, respectively, compared to 1.19 million ounces and 37,000 tonnes, respectively, in the prior year quarter
- Generating $227 million in free cash flow, and $803 million in adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)
- Delivering first production from Cripple Creek & Victor’s new valley leach facility, while progressing Merian, Long Canyon, and an expansion at Tanami on schedule
- Lowering net debt by 16 percent compared to the first quarter of 2015 and successfully completing a $500 million debt tender
- Selling our equity stake in Regis Resources for $184 million, bringing our non-core asset sales to $1.9 billion since 2013
- Maintaining our fourth quarter dividend of $0.025 per share, in line with Newmont’s revised gold price-linked dividend policy
For more information about Newmont’s operations and results, please visit our website.