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Newmont(NEM) - 2024 Q4 - Annual Report
NEMNewmont(NEM)2025-02-21 01:20
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Financial Performance - Net income from continuing operations attributable to Newmont stockholders was 3,280or3,280 or 2.86 per diluted share, an increase of 5,801fromtheprioryear[22].−Adjustednetincomereportedwas5,801 from the prior year[22]. - Adjusted net income reported was 3,991 or 3.48perdilutedshare,anincreaseof3.48 per diluted share, an increase of 1.91 per diluted share from the prior year[22]. - Adjusted EBITDA was 8,675,reflectinga1068,675, reflecting a 106% increase from the prior year[22]. - Net cash provided by operating activities of continuing operations was 6,318, a 129% increase from the prior year, with free cash flow of 2,916[22].−Thecompanyreportedanetincomepershareof2,916[22]. - The company reported a net income per share of 2.92 for 2024, compared to a net loss per share of 2.97in2023[724].−ThenetincomeattributabletoNewmontstockholdersfor2024was2.97 in 2023[724]. - The net income attributable to Newmont stockholders for 2024 was 3.348 billion, a recovery from a net loss of 2.494billionin2023[724].−NetincomefortheyearendedDecember31,2024,was2.494 billion in 2023[724]. - Net income for the year ended December 31, 2024, was 3,381 million, a significant increase from a net loss of 2,467millionin2023[727].−ComprehensiveincomeattributabletoNewmontstockholderswas2,467 million in 2023[727]. - Comprehensive income attributable to Newmont stockholders was 3,239 million in 2024, compared to a loss of 2,509millionin2023[727].ProductionandSales−Attributablegoldproductionwasapproximately7millionounces,anincreaseofapproximately242,509 million in 2023[727]. Production and Sales - Attributable gold production was approximately 7 million ounces, an increase of approximately 24% from the prior year[22]. - Sales for the year ended December 31, 2024, were 18,682 million, compared to 11,812millionin2023[12].−Consolidatedgoldouncesproducedwere6,545thousand,anincreasefrom5,401thousandin2023[16].−Averagerealizedpriceforgoldwas11,812 million in 2023[12]. - Consolidated gold ounces produced were 6,545 thousand, an increase from 5,401 thousand in 2023[16]. - Average realized price for gold was 2,408 per ounce, up from 1,954perouncein2023[16].−Thecompany′ssalesfortheyearendedDecember31,2024,were1,954 per ounce in 2023[16]. - The company's sales for the year ended December 31, 2024, were 18.682 billion, a significant increase from 11.812billionin2023[724].CostsandExpenses−Costsapplicabletosalesfor2024were11.812 billion in 2023[724]. Costs and Expenses - Costs applicable to sales for 2024 were 8.963 billion, compared to 6.699billionin2023,reflectinga33.86.699 billion in 2023, reflecting a 33.8% increase[724]. - Exploration expenses for 2024 were 266 million, slightly up from 265millionin2023[724].−Thecompany′sreclamationandremediationcostsfor2024were265 million in 2023[724]. - The company's reclamation and remediation costs for 2024 were 328 million, down from 1.533billionin2023[724].AssetsandLiabilities−Thecompanyendedtheyearwith1.533 billion in 2023[724]. Assets and Liabilities - The company ended the year with 3,619 million in consolidated cash and approximately 7,664millionofliquidity[22].−Totalassetsroseto7,664 million of liquidity[22]. - Total assets rose to 56,349 million in 2024, compared to 55,506millionin2023[730].−Totalliabilitiesdecreasedslightlyto55,506 million in 2023[730]. - Total liabilities decreased slightly to 26,240 million in 2024 from 26,301millionin2023[730].−Theconsolidatedreclamationliabilitiesofthecompanytotaled26,301 million in 2023[730]. - The consolidated reclamation liabilities of the company totaled 8.5 billion as of December 31, 2024, including 1.5billioninliabilitiesheldforsale[705].ImpairmentandGoodwill−Theimpairmentchargesfor2024were1.5 billion in liabilities held for sale[705]. Impairment and Goodwill - The impairment charges for 2024 were 78 million, a significant decrease from 1.891billionin2023[724].−Goodwillistestedforimpairmentannuallyandwhencircumstancesindicatethatthecarryingvalueexceedsfairvalue[661].−Thequalitativegoodwillimpairmentassessmentindicatedagoodwillbalanceof1.891 billion in 2023[724]. - Goodwill is tested for impairment annually and when circumstances indicate that the carrying value exceeds fair value[661]. - The qualitative goodwill impairment assessment indicated a goodwill balance of 668 million as of December 31, 2024[718]. - The ability to achieve estimated quantities of recoverable minerals from exploration stage mineral interests involves higher risks due to lower geological confidence[659]. Cash Flow and Financing - The company reported a net change in cash, cash equivalents, and restricted cash of 550millionfortheyearendedDecember31,2024[734].−Thecompanyrepaid550 million for the year ended December 31, 2024[734]. - The company repaid 3,860 million in debt during 2024, while also issuing 3,476millioninnewdebt[732].−Newmont′stotalequityincreasedto3,476 million in new debt[732]. - Newmont's total equity increased to 30,109 million in 2024, up from 29,205millionin2023[730].−Thecompanydeclaredcashdividendsof29,205 million in 2023[730]. - The company declared cash dividends of 1.00, 1.60,and1.60, and 2.20 per common share for the years 2024, 2023, and 2022, respectively[738]. Risk Management - The company does not currently hold instruments to hedge against potential impacts due to market price changes in metals[680]. - The Cadia Power Purchase Agreement and foreign currency cash flow hedges are used for risk management, mitigating variability in future cash flows[689]. - A hypothetical 10% adverse movement in local currency exchange rates would increase costs applicable to sales by approximately 71pergoldounce[685].−Thecompanyhassignificantoperationsinmultiplecountries,withallproductionsoldbasedonUSDmetalprices,exposingittoforeigncurrencyexchangeratefluctuations[684].AcquisitionsandDivestitures−ThecompanycompletedtheacquisitionofNewcrestMiningLimitedfortotalnon−cashconsiderationof71 per gold ounce[685]. - The company has significant operations in multiple countries, with all production sold based on USD metal prices, exposing it to foreign currency exchange rate fluctuations[684]. Acquisitions and Divestitures - The company completed the acquisition of Newcrest Mining Limited for total non-cash consideration of 13,549 million on November 6, 2023[743]. - The company plans to divest six non-core assets and a development project, which are expected to be completed within 12 months[741]. Tax and Regulatory Matters - The Corporate AMT of 15% on adjusted financial statement income is effective for tax periods beginning in fiscal year 2023[841]. - The Pillar II agreement, signed by 138 countries, aims to implement a global minimum tax of 15%, with no material impact anticipated for Newmont[842]. - The Inflation Reduction Act introduced a 1% excise tax on stock repurchases effective on net stock repurchases made after December 31, 2022[840]. Accounting Policies - The Company’s Consolidated Financial Statements are prepared in accordance with GAAP, requiring estimates and assumptions that could differ from actual results[758]. - Significant estimates relate to mineral reserves, environmental obligations, and asset impairments, which could impact future cash flow estimates[759]. - The Company recognizes and measures assets and liabilities in business combinations based on estimated fair values, with independent appraisers engaged for material acquisitions[764].