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Gold mining giant Newmont Mining Corporation (NEM - Free Report) logged net income from continuing operations of $170 million or 32 cents per share in first-quarter 2018, more than two-fold surge from a net income of $70 million or 13 cents recorded a year ago. The bottom line in the reported quarter was boosted by higher realized gold prices.
Barring one-time items, adjusted earnings were 35 cents per share for the quarter, which beat the Zacks Consensus Estimate of 33 cents.
Newmont reported revenues of $1,817 million, up around 7.5% year over year. The figure however, missed the Zacks Consensus Estimate of $1,847.2 million.
Newmont Mining Corporation Price, Consensus and EPS Surprise
Newmont's attributable gold production decreased 2% year over year to 1.21 million ounces in the first quarter.
Average net realized gold price increased 9% to $1,326 per ounce from $1,219 an ounce a year ago. The average net realized copper price rose 7% to $2.88 per pound from $2.68 per pound.
Newmont’s costs applicable to sales (CAS) for gold was $748 per ounce in the quarter, up 8% from year-ago quarter figure of $691 per ounce. Copper CAS was $1.74 per pound, up 16% year over year.
All-in sustaining costs (AISC) for gold rose 8% year over year to $973 per ounce.
Regional Performance
North America
Attributable gold production in North America in the first quarter was 490,000 ounces, declining 3% year over year. Consolidated copper production was 3,000 tons, down 25% from 4,000 tons recorded in the year-ago quarter.
Gold CAS for the region was $765 per ounce compared with $767 in the year-ago quarter. Copper CAS was $1.88 per pound, rising 4% year over year.
South America
Attributable gold production in South America was 144,000 ounces, declining 4% year over year. Gold CAS for the region rose 20% to $782 per ounce.
Australia
Attributable gold and copper production in the region was 366,000 ounces, up 2% year over year. Gold CAS and copper CAS for this region was $707 per ounce, up 9% and $1.68 per pound, up 28%, respectively.
Africa
The region produced 209,000 ounces of gold in the reported quarter, down 5% year over year. Gold CAS was $746 per ounce, increasing 20%.
Financial Position
Net cash provided by continuing operating activities fell 29.1% year over year to $263 million in the first-quarter 2018. The company ended the quarter with roughly $3.1 billion cash in hand and also reduced total debt to $4,095 million in the first-quarter from $4,621 million a year ago.
Outlook
Newmont continues to expect attributable gold production in the range of 4.9–5.4 million ounces for 2018 and 2019.
The company kept its AISC unchanged for 2018 at between $965 and $1,025 per ounce. CAS outlook for gold is also unchanged in the range of $700-$750 per ounce.
The company reiterated attributable copper production forecast for 2018 in the range of 40,000-60,000 tons.
Price Performance
Newmont’s shares have inched up 1.1% over the last three months, outperforming the 6% decline recorded by its industry.
Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have soared 27.7% over a year.
U.S. Steel has an expected long-term earnings growth rate of 8%. Its shares have rallied 59.4% over a year.
Kronos has an expected long-term earnings growth rate of 5%. Its shares have surged 35.3% over a year.
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Newmont (NEM) Q1 Earnings Beat, Revenues Trail Estimates
Gold mining giant Newmont Mining Corporation (NEM - Free Report) logged net income from continuing operations of $170 million or 32 cents per share in first-quarter 2018, more than two-fold surge from a net income of $70 million or 13 cents recorded a year ago. The bottom line in the reported quarter was boosted by higher realized gold prices.
Barring one-time items, adjusted earnings were 35 cents per share for the quarter, which beat the Zacks Consensus Estimate of 33 cents.
Newmont reported revenues of $1,817 million, up around 7.5% year over year. The figure however, missed the Zacks Consensus Estimate of $1,847.2 million.
Newmont Mining Corporation Price, Consensus and EPS Surprise
Newmont Mining Corporation Price, Consensus and EPS Surprise | Newmont Mining Corporation Quote
Operational Highlights
Newmont's attributable gold production decreased 2% year over year to 1.21 million ounces in the first quarter.
Average net realized gold price increased 9% to $1,326 per ounce from $1,219 an ounce a year ago. The average net realized copper price rose 7% to $2.88 per pound from $2.68 per pound.
Newmont’s costs applicable to sales (CAS) for gold was $748 per ounce in the quarter, up 8% from year-ago quarter figure of $691 per ounce. Copper CAS was $1.74 per pound, up 16% year over year.
All-in sustaining costs (AISC) for gold rose 8% year over year to $973 per ounce.
Regional Performance
North America
Attributable gold production in North America in the first quarter was 490,000 ounces, declining 3% year over year. Consolidated copper production was 3,000 tons, down 25% from 4,000 tons recorded in the year-ago quarter.
Gold CAS for the region was $765 per ounce compared with $767 in the year-ago quarter. Copper CAS was $1.88 per pound, rising 4% year over year.
South America
Attributable gold production in South America was 144,000 ounces, declining 4% year over year. Gold CAS for the region rose 20% to $782 per ounce.
Australia
Attributable gold and copper production in the region was 366,000 ounces, up 2% year over year. Gold CAS and copper CAS for this region was $707 per ounce, up 9% and $1.68 per pound, up 28%, respectively.
Africa
The region produced 209,000 ounces of gold in the reported quarter, down 5% year over year. Gold CAS was $746 per ounce, increasing 20%.
Financial Position
Net cash provided by continuing operating activities fell 29.1% year over year to $263 million in the first-quarter 2018. The company ended the quarter with roughly $3.1 billion cash in hand and also reduced total debt to $4,095 million in the first-quarter from $4,621 million a year ago.
Outlook
Newmont continues to expect attributable gold production in the range of 4.9–5.4 million ounces for 2018 and 2019.
The company kept its AISC unchanged for 2018 at between $965 and $1,025 per ounce. CAS outlook for gold is also unchanged in the range of $700-$750 per ounce.
The company reiterated attributable copper production forecast for 2018 in the range of 40,000-60,000 tons.
Price Performance
Newmont’s shares have inched up 1.1% over the last three months, outperforming the 6% decline recorded by its industry.
Zacks Rank & Stocks to Consider
Newmont currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , United States Steel Corporation (X - Free Report) and Kronos Worldwide Inc. (KRO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have soared 27.7% over a year.
U.S. Steel has an expected long-term earnings growth rate of 8%. Its shares have rallied 59.4% over a year.
Kronos has an expected long-term earnings growth rate of 5%. Its shares have surged 35.3% over a year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>