Newmont Mining (NEM) is one of the world’s largest gold mining operations on the globe. We have followed the name for years and watched it survive the extreme downturn in metal prices from 2013-2016. Since then, the company has become leaner, improved its efficiencies, and is making a strong profit once again. Let us discuss.

Newmont continued its steady trajectory of improving operational and financial performance in 2017 and built a stronger base for long-term value creation. In Q4, Newmont delivered a GAAP net loss from continuing operations attributable to stockholders of $(534) million or $(0.99) diluted share. However, when making necessary adjustments, adjusted net income was $216 million or $0.40 per diluted share, up 60 percent from the prior-year quarter.

In the quarter the company produced 1.3 million ounces of gold. Its costs per ounce rose only slightly to $693, while all-in sustaining costs were up to $968. This is still well below highs seen in 2014-2015. Thanks to strong production and higher metal prices, the company saw cash flow increased 2 percent to $754 million, while free cash flow was up 54 percent to $445 million. This is impressive.

For the year, GAAP Net loss from continuing operations attributable to stockholders was $(60) million or $(0.11) per diluted share, compared to a loss of $(220) million or $(0.41) per diluted share in the prior year primarily due to higher gold production, higher average realized gold prices and a prior year impairment at Yanacocha partially offset by the impact of changes in U.S. tax legislation. Making adjustments, adjusted net income for the full year was $780 million or $1.46 per diluted share, compared to $619 million or $1.16 per diluted share in the prior year. An incredible turnaround.

As we look ahead, Attributable gold production is expected to be between 4.9 and 5.4 million ounces in 2018 and 2019, mainly driven by Full Potential mine plan, throughput, and recovery improvements. Longer term production is expected to remain stable at between 4.6 and 5.1 million ounces per year through 2022 excluding development projects which have yet to be approved. Gold costs are expected to be between $700 and $750 per ounce in 2018 following production increases in North America and Africa and efficiency improvements across the portfolio. 

We continue to expect positive results on the financial front, and believe the dividend will continue to grow in the years ahead.