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Newmont's (NEM) Q4 Earnings Surpass Estimates, Sales Lag
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Newmont Corporation (NEM - Free Report) reported net income from continuing operations of $806 million or $1.00 per share in fourth-quarter 2020, up from $537 million or 66 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings were $1.06 per share that beat the Zacks Consensus Estimate of 95 cents.
Newmont reported revenues of $3,381 million, up 13.9% year over year. However, the figure missed the Zacks Consensus Estimate of $3,685.9 million.
Newmont Corporation Price, Consensus and EPS Surprise
Earnings (as reported) for full-year 2020 were $3.31 per share compared with earnings of $3.91 per share a year ago. Net sales rose 18% year over year to around $11.5 billion.
Operational Highlights
Newmont's attributable gold production for the fourth quarter declined 11% year over year to 1.63 million ounces in the quarter, impacted by the sale of Red Lake and Kalgoorlie, reduced production at Cerro Negro and lower ore grade mined at Ahafo.
Average realized prices of gold rose 25% year over year to $1,852 per ounce.
The company’s costs applicable to sales (CAS) for gold was $739 per ounce, up 7% year over year.
All-in sustaining costs (AISC) for gold increased 10% year over year to $1,043 per ounce. The uptick was mainly due to higher CAS per ounce and increased sustaining capital largely driven by the Autonomous Haulage System progressing ahead of schedule at Boddington.
Regional Performance
North America: Attributable gold production for the fourth quarter in North America was 435,000 ounces, up 15% year over year. Gold CAS for the region was $731 per ounce, down 0.4% year over year.
South America: Attributable gold production in South America was 200,000 ounces, down 28% year over year. Gold CAS for the region rose 16% on a year-over-year basis to $776 per ounce.
Australia: Attributable gold in the region was 304,000 ounces, down 23% year over year. Gold CAS in the region rose 5% year over year to $725 per ounce.
Africa: Production in the region totaled 243,000 ounces of gold in the quarter, down 16% year over year. Gold CAS was $729 per ounce, up 16% year over year.
Nevada: Production totaled 342,000 ounces of gold in the quarter, down 8% year over year. Gold CAS was $739 per ounce, up 4% year over year.
Financial Position
The company ended the year with cash and cash equivalents of $5,540 million, up 147% year over year. At the end of the year, the company had total debt of $5,480 million.
Net cash from operating activities amounted to $1,686 million in the quarter, up 39.9% year over year.
Outlook
For 2021, Newmont expects attributable gold production of 6.5 million ounces. The company also expects gold CAS to be $750 per ounce and AISC to be $970 per ounce.
Newmont expects an increase in gold production and is undertaking investments in its operating assets and other growth prospects. Its two projects, Ahafo North and Yanacocha Sulfides are expected to reach execution stage in 2021.
Price Performance
Newmont’s shares have gained 23.5% in the past year compared with 45.3% rise of the industry.
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
BHP has an expected earnings growth rate of 61.2% for the current fiscal. The company’s shares have gained around 46.9% in the past year. It currently holds a Zacks Rank #2.
Impala has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 39.6% in the past year. It currently sports a Zacks Rank #1.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Newmont's (NEM) Q4 Earnings Surpass Estimates, Sales Lag
Newmont Corporation (NEM - Free Report) reported net income from continuing operations of $806 million or $1.00 per share in fourth-quarter 2020, up from $537 million or 66 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings were $1.06 per share that beat the Zacks Consensus Estimate of 95 cents.
Newmont reported revenues of $3,381 million, up 13.9% year over year. However, the figure missed the Zacks Consensus Estimate of $3,685.9 million.
Newmont Corporation Price, Consensus and EPS Surprise
Newmont Corporation price-consensus-eps-surprise-chart | Newmont Corporation Quote
FY20 Results
Earnings (as reported) for full-year 2020 were $3.31 per share compared with earnings of $3.91 per share a year ago. Net sales rose 18% year over year to around $11.5 billion.
Operational Highlights
Newmont's attributable gold production for the fourth quarter declined 11% year over year to 1.63 million ounces in the quarter, impacted by the sale of Red Lake and Kalgoorlie, reduced production at Cerro Negro and lower ore grade mined at Ahafo.
Average realized prices of gold rose 25% year over year to $1,852 per ounce.
The company’s costs applicable to sales (CAS) for gold was $739 per ounce, up 7% year over year.
All-in sustaining costs (AISC) for gold increased 10% year over year to $1,043 per ounce. The uptick was mainly due to higher CAS per ounce and increased sustaining capital largely driven by the Autonomous Haulage System progressing ahead of schedule at Boddington.
Regional Performance
North America: Attributable gold production for the fourth quarter in North America was 435,000 ounces, up 15% year over year. Gold CAS for the region was $731 per ounce, down 0.4% year over year.
South America: Attributable gold production in South America was 200,000 ounces, down 28% year over year. Gold CAS for the region rose 16% on a year-over-year basis to $776 per ounce.
Australia: Attributable gold in the region was 304,000 ounces, down 23% year over year. Gold CAS in the region rose 5% year over year to $725 per ounce.
Africa: Production in the region totaled 243,000 ounces of gold in the quarter, down 16% year over year. Gold CAS was $729 per ounce, up 16% year over year.
Nevada: Production totaled 342,000 ounces of gold in the quarter, down 8% year over year. Gold CAS was $739 per ounce, up 4% year over year.
Financial Position
The company ended the year with cash and cash equivalents of $5,540 million, up 147% year over year. At the end of the year, the company had total debt of $5,480 million.
Net cash from operating activities amounted to $1,686 million in the quarter, up 39.9% year over year.
Outlook
For 2021, Newmont expects attributable gold production of 6.5 million ounces. The company also expects gold CAS to be $750 per ounce and AISC to be $970 per ounce.
Newmont expects an increase in gold production and is undertaking investments in its operating assets and other growth prospects. Its two projects, Ahafo North and Yanacocha Sulfides are expected to reach execution stage in 2021.
Price Performance
Newmont’s shares have gained 23.5% in the past year compared with 45.3% rise of the industry.
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , BHP Group (BHP - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of 78.4% for the current fiscal. The company’s shares have surged around 156.4% in a year. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BHP has an expected earnings growth rate of 61.2% for the current fiscal. The company’s shares have gained around 46.9% in the past year. It currently holds a Zacks Rank #2.
Impala has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 39.6% in the past year. It currently sports a Zacks Rank #1.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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