Newmont books FY loss after buying Newcrest
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The news: Gold Miner Newmont Corporation has booked a full-year loss on the back of hefty impairments against some of its mines and additional costs related to its acquisition of Australia’s top gold miner Newcrest.
The numbers: The company booked a USD2.5 billion ($3.8 billion) loss for 2023, driven by USD1.9 billion in impairment charges, USD1.5 billion in reclamation charges and USD464 million in transaction and integration costs related to Newcrest. Excluding these costs, adjusted net income was USD1.4 billion, or USD1.61 per share.
Newmont shares were down 6.98% in early trading on the ASX following its results announcement.
The context: Most of the impairments related to its Penasquito mine in Mexico. The company is eyeing a near-term debt reduction of USD1 billion through divestments in eight non-core assets, including the Telfer mine and Havieron project in Western Australia, and trimming its workforce.
Newmont acquired Australia’s Newcrest in a $26 billion deal late last year to cement its place as the world’s top gold miner. It expects to deliver USD500 million in cost savings and synergies from the deal by 2025.
The group expects to produce 6.93 million ounces of gold in 2024, up from 5.5 million ounces last year, but this fell short of market expectations, dragging its shares lower in New York.
The source: ASX announcement
