- The company results were impressive with a record of $1,301 million in free cash flow thanks to a record gold price at $1,913 per ounce.
- Gold production was 1,541k Au Oz, and the total gold equivalent for 3Q’20 was 1,814K GEOs.
- Newmont raised its dividend for the second time this year to a quarterly dividend of $0.40 per share.
- NEM is one of my selected long-term gold miners.
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The image above: Cerro Negro Source – Panorama Minero
Investment Thesis
Newmont Corporation (NYSE:NEM) released its third quarter of 2020 results on October 29, 2020. The company results were impressive, with a record of $1,301 million in free cash flow thanks to a record gold price at $1,913 per ounce. Newmont raised its dividend for the second time this year to a quarterly dividend of $0.40 per share.
It was not a perfect bullseye, though. Gold production declined by 6.3% year over year. The company was affected by the coronavirus again in three of its mines and divest two other mines. Also, on the weak side, AISC rose 3.3% year over year due to lower gold sales of 1,429K Oz this quarter.
Newmont Goldcorp is amongst my long-term selected gold miners with Barrick Gold (NYSE:GOLD), Agnico Eagle (NYSE:AEM), and Kirkland Lake Gold (NYSE:KL). Newmont has outperformed the group and the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) in 2020.
