Newmont shares gain on Q2 result, share buyback
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More news: Newmont was the best performing ASX 200 company in morning trade after the gold miner reported a 9% rise in net income for the second quarter, and announced a $4.6 billion share repurchase program.
Shares were up 3.8% to $95.33 at 11:10am AEST, with the wider mining segment down more than 1%.
Newmont posts Q2 income jump, unveils $4.6b share buyback
The news: Gold miner Newmont has reported a 9% lift in net income for the second quarter, and unveiled a USD3 billion ($4.6 billion) share repurchase program.
The numbers: Newmont recorded net income of USD2.06 billion for the quarter, up 9% from USD1.89 billion in the previous quarter.
Total gold production of 1.48 million ounces was 4% lower than 1.54 million ounces in the prior quarter. Newmont's average realised gold price was 12.8% higher at USD3,320 per ounce.
Free cash flow rose 42% quarter on quarter to USD1.7 billion, a record quarterly total for the company.
Newmont's board authorised an additional USD3 billion share repurchase program, "to be executed at the company's discretion", having returned USD1 billion of capital to shareholders through share repurchases and dividend payments since its last earnings call.
Newmont also declared a dividend of 25 US cents per share for the second quarter.
The company's US-listed shares jumped 4% on Wall Street on the result.
The context: Chief executive Tom Palmer said the miner remains "firmly on track" to achieve its full-year guidance.
The company noted that the decline in gold production during the period was "as expected", driven by the sales of non-core assets and partly offset by higher output at its Yanacocha mine in Peru.
Newmont said third-quarter production is expected to be "relatively in line" with the second quarter, as higher put from its non-operated joint ventures, as well as its Cerro Negro, Brucejack and Tanami projects, is offset by declines at its Ahafo South, Lihir, Penasquito and Cadia sites.
The source: ASX
