Newmont Mining Corporation (NEM) saw its loss widen to $344 million, or $0.65 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $254 million, or $0.50 a share. On an adjusted basis, net profit for the quarter stood at $133 million, or $0.25 a share compared with a net loss of $9 million, or $0.03 a share in the last year period. Revenue during the quarter grew 23.21 percent to $1,789 million from $1,452 million in the previous year period. Gross margin for the quarter expanded 883 basis points over the previous year period to 42.09 percent. Operating margin for the quarter stood at negative 44.33 percent as compared to a negative 17.56 percent for the previous year period.
Operating loss for the quarter was $793 million, compared with an operating loss of $255 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $629 million compared with $292 million in the prior year period. At the same time, adjusted EBITDA margin improved 1505 basis points in the quarter to 35.16 percent from 20.11 percent in the last year period.
"We continued to make Newmont a safer and more profitable business in 2016, with differentiated cash flow, financial strength and growth prospects," said Gary Goldberg, president and chief executive officer. "We increased adjusted EBITDA by 25 percent to $2.4 billion and more than doubled free cash flow to nearly $800 million on the back of superior operational performance. We invested these proceeds with an eye to long-term value creation ��" building two mines, advancing profitable expansions in the Americas and Australia, and adding higher grade ounces to our reserve base. Work to optimize our portfolio culminated in the sale of our PTNNT stake for $920 million. These proceeds helped us retire more than $1.3 billion in debt, improve our liquidity and increase dividends. Our plans for 2017 and beyond remain focused on improving our underlying business, strengthening our portfolio and creating value for shareholders."
Operating cash flow improves significantly
Newmont Mining Corporation has generated cash of $2,786 million from operating activities during the year, up 29.88 percent or $641 million, when compared with the last year. The company has spent $80 million cash to meet investing activities during the year as against cash outgo of $2,041 million in the last year. It has incurred net capital expenditure of $1,124 million on net basis during the year, up 1.44 percent or $16 million from year ago.
The company has spent $1,801 million cash to carry out financing activities during the year as against cash inflow of $296 million in the last year period.
Cash and cash equivalents stood at $2,756 million as on Dec. 31, 2016, up 16.63 percent or $393 million from $2,363 million on Dec. 31, 2015.
Working capital declines
Newmont Mining Corporation has witnessed a decline in the working capital over the last year. It stood at $2,927 million as at Dec. 31, 2016, down 17.94 percent or $640 million from $3,567 million on Dec. 31, 2015. Current ratio was at 2.67 as on Dec. 31, 2016, down from 3.52 on Dec. 31, 2015.
Debt comes down
Newmont Mining Corporation has recorded a decline in total debt over the last one year. It stood at $4,615 million as on Dec. 31, 2016, down 21.29 percent or $1,248 million from $5,863 million on Dec. 31, 2015. Total debt was 21.94 percent of total assets as on Dec. 31, 2016, compared with 23.28 percent on Dec. 31, 2015. Debt to equity ratio was at 0.39 as on Dec. 31, 2016, down from 0.41 as on Dec. 31, 2015.
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