Key Takeaways:
- Newmont posted Q2 EPS of $2.10, beating the $2.05 consensus by 6%
- Revenue of $6.12B missed estimates as a seismic event at Cadia disrupted output
- Record Q2 free cash flow of $2.2B driven by gold averaging $4,414/oz
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Newmont beats Q2 EPS estimates by 6% as gold prices surge
Newmont Corp. reported Q2 earnings of $2.10 per share, beating estimates by 6%, as surging gold prices drove record free cash flow.
"The strong gold price environment drove our best second-quarter free cash flow in company history," Newmont's management said in the earnings release.
Revenue of $6.12 billion came in 3% below the $6.31 billion consensus, as a seismic event at the Cadia mine in Australia disrupted production. Net profit reached $2.2 billion, compared with $1.43 per share a year earlier. The gold miner generated record second-quarter free cash flow of $2.2 billion, with realized gold prices averaging $4,414 per ounce versus $3,320 in the year-ago period.
Shares rose 0.98% following the release. The earnings beat extends Newmont's streak of topping consensus to four consecutive quarters, reflecting the tailwind from elevated gold prices. The company's adjusted EPS of $2.10 compared with the Zacks Consensus Estimate of $2.05, while GAAP earnings came in at $2.06 per share.
The results show the leverage gold miners have to rising bullion prices. Newmont's record free cash flow of $2.2 billion in the quarter gives it room to continue deleveraging and returning capital to shareholders. Investors will watch the Q2 earnings call for updates on Cadia's recovery timeline and whether the company raises its full-year production guidance.
This article is for informational purposes only and does not constitute investment advice.
