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2016 First Quarter Earnings Results

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[2]
  • 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[3], and $803 million in adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)[4]
  • 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.

Cautionary Statement: This blog contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Forward looking statement may include financial outlook, statement about future costs or production and project development. Estimates or expectations of future events or results are based upon certain assumptions, which are subject to risks and uncertainties and may prove to be incorrect. Investors are encouraged to read the Cautionary Note relating to forward-looking statements on page 17 of the related earnings press release at this link. Investors are also cautioned that this blog also contains certain non-GAAP measures, such as free cash flow, adjusted EBITDA, AISC and adjusted Net Income. Investors are encouraged to refer to the reconciliations of non-GAAP metrics to the closest GAAP metric on pages 9-15 of the same press release at the link above under the heading “Non-GAAP Financial Measures.”
[2] AISC is a non-GAPP metric. See pages 12-15 for reconciliation to the Costs Applicable to Sales (CAS) of the press release linked above. The Company reported gold CAS of $638 per ounce compared to $614 per ounce in the prior year quarter, and copper CAS of $1.05 per pound compared to $1.35 per pound in the prior year quarter.
[3] Free cash flow is a non-GAAP metric. See page 11of the press release linked above for reconciliation to Net cash provided by operating activities. Net cash provided by operating activities was $522 million for the quarter.
[4] Adjusted EBITDA is a non-GAAP metric. See pages 10-11 of the press release linked above for reconciliation to Net income (loss) attributable to stockholders. Net income attributable to stockholders was $52 million for the quarter.