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Newmont (NEM) Q2 Earnings & Revenues Top Estimates
July 25, 2017

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Newmont Mining Corp. (NEM - Free Report) is engaged in the production of gold, the exploration for gold and the acquisition and development of gold properties worldwide. The company remains focused on investing in projects, explorations and transactions which can improve its resources, reserves and margin. It is also making notable progress with its cost and efficiency improvement programs.

Let’s have a quick look at the company’s second-quarter 2017 release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Newmont for the second quarter have been increasing over the past month. The company has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters, with an average beat of around 11.61%.

Earnings

Newmont’s adjusted earnings for the quarter came in at 46 cents per share. Earnings topped the Zacks Consensus Estimate of 28 cents.

Revenues

Newmont reported revenues of $1,875 million, up around 12% year over year. That surpassed the Zacks Consensus Estimate of $1,786.8 million.

Key Developments to Note

Newmont revised its guidance of attributable gold production to the range of 5–5.4 million ounces for 2017 (up from 4.9–5.4 million ounces). Production at Long Canyon and Merian is anticipated to compensate the impact of declines at Yanacocha and Twin Creeks.

The company kept attributable copper production forecast for 2017 unchanged from the previous guidance of 40,000–60,000 tons per year.

The company revised its AISC (all-in sustaining costs) guidance for 2017 and it now expects it to be between $900 and $950 per ounce (down from $940 and $1,000 per ounce expected earlier).

Copper CAS is estimated in the range of $1.45–$1.65 per pound in 2017. AISC is expected to be between $1.85 and $2.05 per pound in 2017.

Over the longer term, Copper CAS is expected between $1.5 and $1.9 per pound, and copper AISC is expected to be between $1.85 and $2.25 per pound.

Newmont has revised downward its capital spending guidance for 2017 to the range of $890 million – $990 million (down from $900 million – $1.1 billion). This includes sustaining capital expenditure of between $575 million and $675 million (down from $600 million and $700 million expected earlier).

Zacks Rank

Currently, Newmont has a Zacks Rank #3 (Hold), but that could change following the company’s earnings report which was just released.

Market Reaction

Newmont’s shares were up around 1.3% during the pre-market trading. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Newmont’s earnings report!

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