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Newmont's Earnings and Revenues Surpass Estimates in Q4

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Newmont Corporation (NEM - Free Report) reported fourth-quarter 2024 net earnings from continuing operations of $1.24 per share. This is in contrast to a loss of $3.24 per share in the year-ago quarter.

Barring one-time items, adjusted earnings were $1.40 per share, up from 46 cents reported in the prior-year quarter. It beat the Zacks Consensus Estimate of earnings of 95 cents per share.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

NEM’s revenues for the fourth quarter were $5,652 million, up 42.8% from $3,957 million reported in the prior-year quarter. The figure topped the Zacks Consensus Estimate of $4,881 million. The increase in the top line was primarily due to higher sales volumes and realized gold prices.

Newmont Corporation Price, Consensus and EPS Surprise

Newmont Corporation Price, Consensus and EPS Surprise

Newmont Corporation price-consensus-eps-surprise-chart | Newmont Corporation Quote

NEM’s Operational Highlights

Newmont's attributable gold production in the fourth quarter of 1.90 million ounces was 9.2% higher than the prior-year figure. The figure beat our estimate of 1.8 million ounces.

Average realized prices of gold rose around 31.9% year over year to $2,643 per ounce. The figure was below our estimate of $2,652 per ounce.

The company’s costs applicable to sales for gold were $1,096 per ounce, up 0.9% year over year. The figure was above our estimate of $1,050 per ounce.

All-in-sustaining costs (AISC) for gold were down around 1.5% year over year to $1,463 per ounce. The figure was below our estimate of $1,475.2 per ounce.

NEM’s FY 2024 Results

Adjusted earnings were $3.48 per share compared with $1.57 a year ago. Net sales increased 58% year over year to $18,682 million.

NEM’s Financials

The company ended the quarter with cash and cash equivalents of $3,619 million, up 20.6% year over year. At the end of the quarter, Newmont had a long-term debt of $7,552 million, up 8.6% year over year.

Net cash from continuing operations (before working capital) amounted to $2,398 million, up from $787 million a year ago.

NEM’s Outlook

Attributable production for 2025 is forecast to be around 5.9 million gold ounces, with 0.3 million ounces from non-core assets held for sale in the first quarter and 5.6 million ounces from the Total Tier 1 Portfolio. 

Gold AISC for the total portfolio is projected to be $1,630 per ounce, including production from non-core assets, for the first quarter of 2025, with gold AISC from the Total Tier 1 portfolio expected to be $1,620 per ounce for 2025.

In 2025, the Total Tier 1 portfolio is expected to spend roughly $1.8 billion on sustaining capital and $1.3 billion on development capital to advance major near-term development initiatives.

NEM’s Stock Price Performance

Newmont’s shares have gained 55.7% in the past year compared with the industry’s 57.5% growth.

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NEM’s Zacks Rank & Key Picks

NEM currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space are ICL Group Ltd.  (ICL - Free Report) , Fortuna Mining Corp. (FSM - Free Report) and Kronos Worldwide (KRO - Free Report) .

ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at six cents per share. ICL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fortuna is scheduled to release fourth-quarter results on March 5. The Zacks Consensus Estimate for FSM’s fourth-quarter earnings is pegged at 16 cents per share. FSM, a Zacks Rank #2 stock, has gained around 64.6% in the past year. FSM beat the Zacks Consensus Estimate in two of the last four quarters while missing twice, with the average earnings surprise being 53.5%.

Kronos is expected to report fourth-quarter results on March 5. The consensus estimate for KRO’s fourth-quarter earnings is pegged at 11 cents per share. KRO, carrying a Zacks Rank of 2 at present, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 41.7%. 

 

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