NEM - Newmont Q4 Results: Don't Miss The Forest For The Trees

2024-02-22 14:29:31 ET

Summary

• 2023 was a tough year for Newmont Corporation, with multiple setbacks, including wildfires at Eleonore, a tailings issue at Telfer, a strike at Penasquito, and an additional setback at Ahafo South.
• However, Newmont is set to transform its portfolio with multiple divestments planned and will focus on mining the best ounces at the highest margins going forward.
• In this update, we'll dig into the Q4 FY2023 results, what the new Newmont will look like, and whether the stock is worthy of investment.

The Q4 and FY2023 Earnings Season is nearing the halfway mark for the Gold Miners Index ( GDX ), and one of the most recent companies to report its Q4 results was Newmont Corporation ( NEM ). Unfortunately, the sector's largest producer had a tough Q4 and full year, with production coming in below plans and costs above plan after an extended strike at Penasquito, a setback at Ahafo that has reduced through temporarily, and wildfire impacts that affected Eleonore. The result was that attributable production came in at just ~5.55 million ounces of gold at $1,444/oz all-in sustaining costs, up from ~5.96 million ounces of gold at $1,211/oz all-in sustaining costs last year.

In this update, we'll dig into the Q4 FY2023 report, why the recent strategy change is a positive, and whether NEM stock is worthy of investment....

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