Newmont Corporation (NEM - Free Report) reported net income from continuing operations of $537 million or 66 cents per share in fourth-quarter 2019 against a net loss of $3 million or breakeven per share in the year-ago quarter. Fourth-quarter results gained from increased production from the acquired Goldcorp assets and higher realized gold prices.
Barring one-time items, adjusted earnings were 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents.
Newmont reported revenues of $2,967 million, up 44.9% year over year. However, the figure missed the Zacks Consensus Estimate of $3,105.4 million.
In 2019, net income amounted to $2,877 million or $3.91 per share, up from of $280 million or 53 cents a year ago.
Revenues rose 34.3% year over year to roughly $9,740 million.
Newmont's attributable gold production increased around 27% year over year to 1.83 million ounces in the fourth quarter.
Average realized prices of gold rose 20% year over year to $1,478 per ounce.
The company’s costs applicable to sales (CAS) for gold was $691 per ounce, up 5% year over year.
All-in sustaining costs (AISC) for gold advanced 12% year over year to $946 per ounce primarily due to higher gold CAS per ounce and higher sustaining capital spending.
Attributable gold production in North America was 379,000 ounces, up roughly 165% year over year. Gold CAS for the region was $734 per ounce, down around 2% year over year.
Attributable gold production in South America was 277,000 ounces, up 33% year over year. Gold CAS for the region rose around 19% to $671 per ounce.
Attributable gold in the region was 393,000 ounces, up around 3% year over year. Gold CAS in this region declined 4% year over year to $693 per ounce.
Production in the region totaled 290,000 ounces of gold in the quarter, surging 27% year over year. Gold CAS was $628 per ounce, up 8% year over year.
The company ended 2019 with $2.2 billion of consolidated cash. Net debt was $4.6 billion at the end of 2019, up from $0.9 billion at the end of 2018.
Net cash from operating activities surged 56.9% year over year to $2.9 billion for 2019.
Newmont expects attributable gold production for 2020 to be 6.4 million ounces. For 2020, all-in sustaining costs for gold is projected at $975 per ounce. CAS expectation for gold is $750 per ounce.
Newmont’s shares have gained 30.4% in the past year against the industry’s decline of 3.9%.
Zacks Rank & Key Picks
Newmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Daqo New Energy Corp (DQ - Free Report) , Sibanye Gold Limited and Impala Platinum Holdings Limited (IMPUY - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Daqo New Energy has an expected long-term earnings growth rate of 29%. The company’s shares have gained 130.6% in the past year.
Sibanye has an expected long-term earnings growth rate of 20.4%. Its shares have returned 206% in the past year.
Impala Platinum has an expected long-term earnings growth rate of 26.5%. The company’s shares have surged 209.7% in the past year.
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