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Newmont Corporation (NEM - Free Report) reported net income from continuing operations of $432 million or 54 cents per share in first-quarter 2022, down from $538 million or 67 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings were 69 cents per share that missed the Zacks Consensus Estimate of 71 cents.
Newmont reported revenues of $3,023 million, up 5.3% year over year. The figure surpassed the Zacks Consensus Estimate of $2,967.9 million. The upside can be attributed to higher average realized gold prices and copper sales volume, partly offset by reduced gold sales volume.
Newmont Corporation Price, Consensus and EPS Surprise
Newmont's attributable gold production in the first quarter declined roughly 8% year over year to 1.34 million ounces in the quarter.
Average realized prices of gold rose 8.1% year over year to $1,892 per ounce.
The company’s costs applicable to sales (CAS) for gold were $890 per ounce, up 18.4% year over year.
All-in sustaining costs (AISC) for gold were up 11.3% year over year to $1,156 per ounce, mainly due to higher CAS per ounce.
Regional Performance
North America: First-quarter attributable gold production in North America was 309,000 ounces, down 25% year over year. Gold CAS in the region was $995 per ounce, up 35% year over year.
South America: Attributable gold production in South America was 198,000 ounces, up 14% year over year. Gold CAS in the region rose 16% on a year-over-year basis to $921 per ounce.
Australia: Attributable gold in the region was 282,000 ounces, up 5% year over year. Gold CAS in the region was up 2% year over year to $764 per ounce.
Africa: Production in the region totaled 198,000 ounces of gold in the quarter, down 3% year over year. Gold CAS was $871 per ounce, up 15% year over year.
Nevada: Production totaled 288,000 ounces of gold in the quarter, down 5% year over year. Gold CAS was $899 per ounce, up 21% year over year.
Financial Position
The company ended the quarter with cash and cash equivalents of $4,272 million, down 22.6% year over year. At the end of the quarter, the company had long-term debt of $5,566 million, up 11.6% year over year.
Net cash from continuing operations amounted to $689 million. Free cash flow totaled $252 million in the first quarter.
Outlook
For 2022, Newmont expects attributable gold production of 6.2 million ounces. The company also expects gold CAS to be $820 per ounce and AISC to be $1,050 per ounce.
Newmont’s guidance reflects increasing gold production and ongoing investment in its operating assets and most promising growth prospects. It includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Yanacocha Suldes, Pamour at Porcupine and Cerro Negro District Expansion 1.
Price Performance
Newmont’s shares have increased 17.2% in the past year compared with a 0.2% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 102.2% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 73.5% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 684.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 20% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 24.6% over a year.
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Newmont (NEM) Q1 Earnings Miss, Revenues Beat Estimates
Newmont Corporation (NEM - Free Report) reported net income from continuing operations of $432 million or 54 cents per share in first-quarter 2022, down from $538 million or 67 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings were 69 cents per share that missed the Zacks Consensus Estimate of 71 cents.
Newmont reported revenues of $3,023 million, up 5.3% year over year. The figure surpassed the Zacks Consensus Estimate of $2,967.9 million. The upside can be attributed to higher average realized gold prices and copper sales volume, partly offset by reduced gold sales volume.
Newmont Corporation Price, Consensus and EPS Surprise
Newmont Corporation price-consensus-eps-surprise-chart | Newmont Corporation Quote
Operational Highlights
Newmont's attributable gold production in the first quarter declined roughly 8% year over year to 1.34 million ounces in the quarter.
Average realized prices of gold rose 8.1% year over year to $1,892 per ounce.
The company’s costs applicable to sales (CAS) for gold were $890 per ounce, up 18.4% year over year.
All-in sustaining costs (AISC) for gold were up 11.3% year over year to $1,156 per ounce, mainly due to higher CAS per ounce.
Regional Performance
North America: First-quarter attributable gold production in North America was 309,000 ounces, down 25% year over year. Gold CAS in the region was $995 per ounce, up 35% year over year.
South America: Attributable gold production in South America was 198,000 ounces, up 14% year over year. Gold CAS in the region rose 16% on a year-over-year basis to $921 per ounce.
Australia: Attributable gold in the region was 282,000 ounces, up 5% year over year. Gold CAS in the region was up 2% year over year to $764 per ounce.
Africa: Production in the region totaled 198,000 ounces of gold in the quarter, down 3% year over year. Gold CAS was $871 per ounce, up 15% year over year.
Nevada: Production totaled 288,000 ounces of gold in the quarter, down 5% year over year. Gold CAS was $899 per ounce, up 21% year over year.
Financial Position
The company ended the quarter with cash and cash equivalents of $4,272 million, down 22.6% year over year. At the end of the quarter, the company had long-term debt of $5,566 million, up 11.6% year over year.
Net cash from continuing operations amounted to $689 million. Free cash flow totaled $252 million in the first quarter.
Outlook
For 2022, Newmont expects attributable gold production of 6.2 million ounces. The company also expects gold CAS to be $820 per ounce and AISC to be $1,050 per ounce.
Newmont’s guidance reflects increasing gold production and ongoing investment in its operating assets and most promising growth prospects. It includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Yanacocha Suldes, Pamour at Porcupine and Cerro Negro District Expansion 1.
Price Performance
Newmont’s shares have increased 17.2% in the past year compared with a 0.2% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Mosaic Company (MOS - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Mosaic has a projected earnings growth rate of 143.5% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 39.7% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 102.2% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 73.5% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 684.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 20% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 24.6% over a year.