Why Gold Miner Newmont Shares Are Falling Today
Portfolio Pulse from Lekha Gupta
Newmont Corp (NYSE:NEM) shares fell after reporting Q4 FY23 results with a 24% Y/Y revenue increase to $3.957 billion and adjusted EPS of $0.50, beating consensus. Gold production rose 7% Y/Y, but higher costs and a 39% Y/Y decrease in operating cash flow were noted. The company announced a dividend of $0.25 for Q4 2023 and plans to divest six non-core assets. FY24 outlook includes gold production of 6.9 million ounces and AISC of $1,400 per ounce, with a focus on cost and productivity improvements.
February 22, 2024 | 5:58 pm
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Newmont Corp reported Q4 FY23 results with increased revenue and EPS, but faced higher costs and lower operating cash flow. Announced a dividend and plans for asset divestiture. FY24 outlook includes significant gold production and cost management.
Despite beating revenue and EPS consensus, Newmont's share price fell due to concerns over increased costs, lower operating cash flow, and the impact of divesting non-core assets. The FY24 outlook indicates a focus on productivity but also significant capital expenditures, which may concern investors about future profitability and cash flow.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100