A month has gone by since the last earnings report for Newmont Corporation (NEM). Shares have lost about 12% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Newmont due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Newmont's Earnings Miss, Revenues Surpass Estimates in Q3

Newmont reported third-quarter 2024 earnings from continuing operations of 76 cents per share compared with 20 cents in the year-ago quarter. Barring one-time items, adjusted earnings were 81 cents per share, up from 36 cents reported in the prior-year quarter. It lagged the Zacks Consensus Estimate of 83 cents. 

The company’s revenues for the third quarter were roughly $4.6 billion, up around 84.7% year over year. The figure beat the Zacks Consensus Estimate of $4.2 billion.

Higher average realized gold prices and sales volumes aided Newmont's third-quarter performance, partly offset by higher unit costs of production.

Operational Highlights

Newmont's attributable gold production for the third quarter was 1.67 million ounces, registering a rise of 29.4% from 1.29 million ounces reported in the same period last year.  Production was driven by increased production at Cerro Negro, increased throughput at Brucejack, higher mill utilization at Ahafo and improved production at Yanacocha. Production in the quarter was lower than our estimate of 1.72 million ounces. 

Average realized prices of gold rose around 31.1% year over year to $2,518 per ounce. It beat our estimate of $2,476 per ounce.

Newmont reported a rise in CAS for gold, amounting to $1,207 per ounce, up 18.4% from the previous year’s levels. It was higher than our estimate of $997 per ounce. CAS also increased 5% sequentially due to a rise in direct costs at Lihir and higher direct operating costs.

AISC for gold were up around 13% year over year to $1,611 per ounce. This figure topped our estimate of $1,300 per ounce.

Financials

The company ended the quarter with cash and cash equivalents of around $3 billion, down around 5.5% year over year. At the end of the quarter, the company had a long-term debt of roughly $8.55 billion, up 53.4% year over year.

The reported quarter's net cash from operating activities amounted to around $1.65 billion.

Guidance

Newmont expects fourth-quarter 2024 attributable production of 1.8 million gold ounces. The company anticipates that fourth-quarter CAS will be $1,050 per ounce, with an AISC of $1,475 per ounce.