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Takeaways from Newmont Mining's Q1 Report

Thanks to higher gold prices, Newmont Mining Corp saw $2.9 billion in revenue, a quarterly increase of $300 million, according to the company’s latest earnings call.“We continue to drive the business with our clear capital allocation priorities, which include reinvesting in our business through disciplined investments in exploration and organic growth projects, returning cash to shareholders, and maintaining our financial strength and flexibility,” said CFO Nancy Buese, adding that she expects the company to continue delivering strong results in the second quarter.The company produced 1.5 million ounces of gold, along with 317,000 gold equivalent ounces in copper, silver, lead, and zinc.The company’s asset portfolio includes nine mines, which executives project will produce 6 million ounces per year through at least 2030.Palmer said “with the majority of our exploration activities occurring near existing operations, we have familiarity not only with the geology and terrain, but also the permitting regulatory and community relationships surrounding each of our operations. We firmly believe that we have the best portfolio to generate sustainable returns from our world-class responsibly managed assets located in the best gold mining jurisdictions.”In March, Newmont acquired GT Gold, showing a continued commitment to seeking out long-term strategies in prime mining jurisdictions.Still Efficiencies to Be FoundNewmont set its dividends at $0.55 per share, holding in line with levels from Q4 2020. The miner also reduced its debt outstanding by $550 million.CEO Tom Palmer also brought up the company’s commitment to reducing injury among its workforce through exploring new safety protocols and ideas. By examining and solving for employee fatigue – not a traditional focus in the industry – Newmont cut down fatigue-related incidents by 80%.Chief of Operations Rob Atkinson highlighted the pandemic’s impact on production, but assured investors that the company has been able to press forward and produce.“We increased mill efficiency and overall plant performance during the first quarter. Improving throughput by 3%, while also reducing energy consumption by 4%,” he said. “These improvements were driven by full potential projects and are an example of how we continue to find innovative solutions, even at our mature operations.”Newmont is the largest holding in the Sprott Gold Miners ETF (SGDM ), which offers exposure to gold miner majors. Currently, the ETF holds 14% of its portfolio in Newmont.For more news, information, and strategy, visit the Gold & Silver Investing Channel.

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