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The gold mining space remained in the red after mixed-to-downbeat earnings reports for the third quarter. Below we highlight Q3 earnings results of Newmont Mining Corp (NEM - Free Report) ), Barrick Gold Corp and Goldcorp Inc. .
While NEM and GG hold a Zacks Rank #5 (Strong Sell), ABX has a Zacks Rank #4 (Sell). The stocks hail from a bottom-ranked Zacks industry (bottom 9%) and a bottom-ranked Zacks sector (bottom 13%).
Let’s dig a little deeper.
Newmont Q3 Earnings in Focus
Gold mining giant Newmont Mining Corporation logged a net loss from continuing operations of $161 million or 31 cents per share in third-quarter 2018, against net income of $213 million or 39 cents in the year-ago quarter. The bottom line was impacted by lower metal prices and the impairment of exploration and long-lived assets in North America, partly offset by lower income tax expenses. Without one-time items, adjusted earnings were 33 cents per share, which beat the Zacks Consensus Estimate of 22 cents.
Newmont reported revenues of $1,726 million, down around 8.1% year over year. The figure missed the Zacks Consensus Estimate of $1795.5 million. Newmont's attributable gold production fell roughly 4% year over year to 1.29 million ounces in the third quarter. The stock lost about 3.1% (as of Oct 29, 2018) since reporting earnings before market opens on Oct 25.
Goldcorp Q3 Earnings in Focus
Goldcorp recorded net loss of $101 million or 12 cents per share in third-quarter 2018, against net earnings of $111 million or 13 cents in the prior-year quarter. Barring one-time items, adjusted loss came in at 8 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 2 cents.
Goldcorp’s revenues of $621 million in the quarter were down roughly 28.3% year over year. The figure also missed the Zacks Consensus Estimate of $714.5 million. Gold sales fell around 19.3% year over year to 508,000 ounces, while production declining 20.5% to 503,000 ounces. All-in sustaining costs (AISC) were $999 per gold ounce, up roughly 20.8% year over year. The stock retreated about 14% since reporting earnings on Oct 24.
Barrick Gold Q3 Earnings in Focus
Barrick Gold Corp posted net loss (attributable to equity holders) of $412 million or 35 cents per share for third-quarter 2018, wider than net loss of $11 million or a penny per share a year ago.
Barring one-time items, adjusted net earnings came in at 8 cents per share, down from 17 cents a year ago. It, however, beat the Zacks Consensus Estimate of 6 cents. Lower realized prices of gold and copper along with higher direct mining costs weighed on adjusted net earnings.
Revenues fell roughly 7.8% year over year to $1,837 million in the quarter. Nevertheless, the figure beat the Zacks Consensus Estimate of $1,809.3 million. It has shed 3.3% (as of Oct 29, 2018) since reporting earnings on Oct 24 after market closes (read: Barrick Gold to Acquire Randgold: ETFs Set to Shine).
ETF Impact
The aforementioned companies have considerable exposure in large-cap funds like VanEck Vectors Gold Miners ETF (GDX - Free Report) , iShares MSCI Global Gold Miners ETF (RING - Free Report) , Invesco Global Gold & Precious Metals ETF and Sprott Gold Miners ETF (SGDM - Free Report) (see all Materials ETFs here).
In PSAU, NEM (7.54%), ABX (9.78%) and GG (5.29%) take the top three positions. RING invests more than 14% each in NEM and more than 13% in ABX, while GG takes 6.58%. In GDX also, NEM, ABX and GG take 10.41%, 9.39% and 4.95% share, respectively. SGDM puts about 14.01% in NEM, 12.23% in GG and 5.84% in ABX. PSAU, RING, GDX and SGDM has lost about 3.6%, 4.3%, 4.3% and 6% since Oct 24, 2018.
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Gold Mining ETFs Slide on Dull Earnings
The gold mining space remained in the red after mixed-to-downbeat earnings reports for the third quarter. Below we highlight Q3 earnings results of Newmont Mining Corp (NEM - Free Report) ), Barrick Gold Corp and Goldcorp Inc. .
While NEM and GG hold a Zacks Rank #5 (Strong Sell), ABX has a Zacks Rank #4 (Sell). The stocks hail from a bottom-ranked Zacks industry (bottom 9%) and a bottom-ranked Zacks sector (bottom 13%).
Let’s dig a little deeper.
Newmont Q3 Earnings in Focus
Gold mining giant Newmont Mining Corporation logged a net loss from continuing operations of $161 million or 31 cents per share in third-quarter 2018, against net income of $213 million or 39 cents in the year-ago quarter. The bottom line was impacted by lower metal prices and the impairment of exploration and long-lived assets in North America, partly offset by lower income tax expenses. Without one-time items, adjusted earnings were 33 cents per share, which beat the Zacks Consensus Estimate of 22 cents.
Newmont reported revenues of $1,726 million, down around 8.1% year over year. The figure missed the Zacks Consensus Estimate of $1795.5 million. Newmont's attributable gold production fell roughly 4% year over year to 1.29 million ounces in the third quarter. The stock lost about 3.1% (as of Oct 29, 2018) since reporting earnings before market opens on Oct 25.
Goldcorp Q3 Earnings in Focus
Goldcorp recorded net loss of $101 million or 12 cents per share in third-quarter 2018, against net earnings of $111 million or 13 cents in the prior-year quarter. Barring one-time items, adjusted loss came in at 8 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 2 cents.
Goldcorp’s revenues of $621 million in the quarter were down roughly 28.3% year over year. The figure also missed the Zacks Consensus Estimate of $714.5 million. Gold sales fell around 19.3% year over year to 508,000 ounces, while production declining 20.5% to 503,000 ounces. All-in sustaining costs (AISC) were $999 per gold ounce, up roughly 20.8% year over year. The stock retreated about 14% since reporting earnings on Oct 24.
Barrick Gold Q3 Earnings in Focus
Barrick Gold Corp posted net loss (attributable to equity holders) of $412 million or 35 cents per share for third-quarter 2018, wider than net loss of $11 million or a penny per share a year ago.
Barring one-time items, adjusted net earnings came in at 8 cents per share, down from 17 cents a year ago. It, however, beat the Zacks Consensus Estimate of 6 cents. Lower realized prices of gold and copper along with higher direct mining costs weighed on adjusted net earnings.
Revenues fell roughly 7.8% year over year to $1,837 million in the quarter. Nevertheless, the figure beat the Zacks Consensus Estimate of $1,809.3 million. It has shed 3.3% (as of Oct 29, 2018) since reporting earnings on Oct 24 after market closes (read: Barrick Gold to Acquire Randgold: ETFs Set to Shine).
ETF Impact
The aforementioned companies have considerable exposure in large-cap funds like VanEck Vectors Gold Miners ETF (GDX - Free Report) , iShares MSCI Global Gold Miners ETF (RING - Free Report) , Invesco Global Gold & Precious Metals ETF and Sprott Gold Miners ETF (SGDM - Free Report) (see all Materials ETFs here).
In PSAU, NEM (7.54%), ABX (9.78%) and GG (5.29%) take the top three positions. RING invests more than 14% each in NEM and more than 13% in ABX, while GG takes 6.58%. In GDX also, NEM, ABX and GG take 10.41%, 9.39% and 4.95% share, respectively. SGDM puts about 14.01% in NEM, 12.23% in GG and 5.84% in ABX. PSAU, RING, GDX and SGDM has lost about 3.6%, 4.3%, 4.3% and 6% since Oct 24, 2018.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>