Yesterday, Newmont released second quarter earnings results demonstrating that the company continues to deliver strong operating performance and free cash flow, while also reducing injury rates by 40 percent compared to the prior year quarter.
Based on our performance through the first half of 2015, we are able to improve our full-year outlook for both production and costs, while also paying down an additional $75 million in debt during the quarter. Newmont remains on track to pay down further debt in 2015.
The three-month reporting period ending in June represents our fifth consecutive quarter of positive free cash flow, along with a 32 percent increase in adjusted EBITDA and a 17 percent increase in operating cash flow compared to 2014.
Highlights from the quarter include:
- Achieved adjusted net income of $131 million compared to $101 million in the prior year quarter; GAAP net income attributable to shareholders from continuing operations was $63 million compared to $182 million in the prior year quarter
- Generated $441 million in operating cash flow and $119 million in free cash flow, compared to $378 million and $124 million in the prior year quarter
- Improved gold AISC to $909 per ounce compared with $1,063 per ounce in the prior year quarter, and copper AISC to $1.61 per pound compared to $3.69 per pound in the prior year quarter
- Improved gold CAS to $638 per ounce compared with $744 per ounce in the prior year quarter, and copper CAS to $1.20 per pound compared to $2.53 per pound in the prior year quarter
- Delivered 1.24 million ounces and 41,000 tonnes of attributable gold and copper production, respectively, compared to 1.22 million ounces and 20,000 tonnes, respectively, in the prior year quarter (despite the sale of assets)
- Announcing the acquisition of Cripple Creek & Victor in Colorado, and advancing the Turf Vent Shaft and Long Canyon in Nevada, and Merian in Suriname
- Declared a second quarter dividend of $0.025 per share
For more information about Newmont’s operations and results, please visit our website.
[i] This blog contains certain non-GAAP measures, such as free cash flow, adjusted EBITDA, AISC and adjusted Net Income, and forward-looking statements, such as outlook and expectations regarding future results and debt repayment, which are subject to risks and uncertainties. Investors are encouraged to refer to the Cautionary Note relating to forward-looking statements on page 18 of the related earnings press release. Investors are also encouraged to refer to the reconciliations of non-GAAP metrics to the closest GAAP metric on pages 10–16 of the same press release here: http://bit.ly/1CQOkGG