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Newmont Goldcorp (NEM) Earnings & Sales Miss Estimates in Q2

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Newmont Goldcorp Corporation (NEM - Free Report) reported net income from continuing operations of $1 million or breakeven per share in second-quarter 2019, down from $274 million or 51 cents in the year-ago quarter.

Barring one-time items, adjusted earnings were 12 cents per share. The figure trailed the Zacks Consensus Estimate of 23 cents.

Newmont Goldcorp delivered revenues of $2,257 million, up around 35.8% year over year. The figure, however, missed the Zacks Consensus Estimate of $2,262.3 million.

Newmont Mining Corporation Price, Consensus and EPS Surprise

 

Newmont Mining Corporation Price, Consensus and EPS Surprise

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

 

Operational Highlights

Newmont Goldcorp's attributable gold production rose around 37% year over year to 1.59 million ounces in the second quarter.

The company’s costs applicable to sales (CAS) for gold was $759 per ounce, up from $751 per ounce in the year-ago quarter.

All-in sustaining costs (AISC) for gold rose around 4% year over year to $1,016 per ounce.

Regional Performance

North America

Attributable gold production in North America was 251,000 ounces, up roughly 292% year over year. Gold CAS for the region was $1,031 per ounce, up around 58% year over year.

South America

Attributable gold production in South America was 260,000 ounces, up 84% year over year. Gold CAS for the region fell around 8% to $651 per ounce.

Australia

Attributable gold in the region was 359,000 ounces, down around 8% year over year. Gold CAS in this region rose 2% year over year to $724 per ounce.

Africa

Production in the region totaled 277,000 ounces of gold in the quarter, up 39% year over year. Gold CAS was $602 per ounce, down 21% year over year.

Financial Position

The company ended the second quarter with $1.8 billion of cash in hand. Net debt was around $4.9 billion, up from nearly $1 billion in the year-ago quarter.

Net cash from continuing operating activities declined 25.1% year over year to $299 million in the quarter.

Outlook

Newmont Goldcorp now expects attributable gold production for 2019 to be 6.5 million ounces reflecting Newmont operated assets for the full year and Goldcorp assets from Apr 18, 2019.

For 2019, the company now expects all-in sustaining costs for gold to be $975 per ounce. Also, costs applicable to sales expectation for gold is $735 per ounce.

Price Performance

Newmont Goldcorp’s shares have gained 4% in the past year compared with 37.1% rise of the industry.



Zacks Rank & Other Key Picks

Newmont Goldcorp currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are SSR Mining Inc (SSRM - Free Report) , Kinross Gold Corporation (KGC - Free Report) and Arconic Inc , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SSR Mining has an expected earnings growth rate of 69.6% for 2019. The company’s shares have rallied 50.8% in the past year.

Kinross has projected earnings growth rate of 80% for the current year. The company’s shares have gained 15.7% in a year’s time.

Arconic has an estimated earnings growth rate of 38.2% for the current year. Its shares have moved up 33.2% in the past year.

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