Stock Monitor: Entree Resources Post Earnings Reporting
LONDON, UK / ACCESSWIRE / November 29, 2017 / Active-Investors free earnings report on Newmont Mining Corp. (NYSE: NEM) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=NEM. Newmont Mining reported its third quarter fiscal 2017 operating results on October 26, 2017. The gold and copper miner's revenue grew 5%, while it exceeded top- and bottom-line expectations. Register today and get free access to our complimentary member's area where many more reports are available:
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Earnings Highlights and Summary
For the quarter ended September 30, 2017, Newmont's revenue rose 5% to $1.88 billion compared to revenue of $1.79 billion for Q3 2016, as increased sales volumes offset a lower average realized gold price. The Company's reported numbers topped analysts' expectations of $1.84 billion.
During Q3 2016, Newmont generated $653 million in adjusted EBITDA versus $666 million in the prior year's comparable quarter.
For Q3 2017, GAAP net income from continuing operations attributable to Newmont's stockholders was $213 million, or $0.39 per diluted share, up 22% from $169 million, or $0.32 per share, in Q3 2016 attributed to higher gold production and lower income taxes.
The Company's adjusted net income for the reported quarter was $183 million, or $0.35 per diluted share, down 8% from $202 million, or $0.38 per share, in the prior year's same quarter. Newmont's earnings came in ahead of Wall Street's expectations of $0.31 per share.
During Q3 2017, Newmont's attributable gold production increased 7% to 1.3 million ounces as new production at Merian and Long Canyon was partially offset by lower throughput at Twin Creeks and lower grades at Boddington. The Company's average realized price for gold was 4% lower at $1,276 per ounce for the reported quarter compared to $1,329 in the prior year's corresponding quarter.
Newmont's Gold costs applicable to sales (CAS) totaled $1.02 billion for Q3 2017 compared to $918 million in Q3 2016. Gold CAS per ounce rose 2% to $721 per ounce on a y-o-y basis compared to $706 in the prior year's same quarter on higher direct operating costs, primarily unfavorable Australian dollar exchange rates. Gold all-in sustaining costs (AISC) rose 2% to $943 per ounce compared to $925 in Q3 2016, driven by increased CAS per ounce and higher exploration and advanced projects spend.
For Q3 2017, Newmont's attributable copper production from Phoenix and Boddington was 12,000 tonnes compared to 15,000 in Q3 2016. The Company's average realized price for copper improved by $1.02 to $3.06 per pound.
Copper CAS totaled $36 million for the reported quarter, while Copper CAS per pound improved 36% to $1.38 per pound for the quarter on lower co-product allocation of costs to copper. Copper AISC improved 36% y-o-y to $1.65 per pound on improved unit CAS.
Balance Sheet and Liquidity
Newmont ended the quarter with $3.0 billion cash on hand, and leverage ratio of 0.4x net debt to adjusted EBITDA. Since 2013, Newmont has streamlined its balance sheet and reduced gross debt by over 33% and net debt by over 77%.
For Q3 2017, Newmont's consolidated operating cash flow from continuing operations surged 35% to $688 million on a y-o-y basis with a reduction in working capital and taxes paid. The Company's capital expenditures fell 28% to $194 million on y-o-y basis as growth projects including Merian and Long Canyon moved into commercial production. Newmont's free cash flow more than doubled by 107% to $494 million in the reported quarter on higher sales volumes and lower capital expenditures.
Newmont's production guidance for 2017 remains between 5.0 and 5.4 million ounces on full potential improvements in North America and Africa.
Newmont re-affirmed its gold CAS guidance to be between $675 and $715 per ounce on increased production and mining and processing improvements in North America, Africa, and Australia. Gold's total AISC guidance for 2017 was unchanged between $900 and $950 per ounce on CAS improvements and reduction of sustaining capital in North America, Africa, and Australia.
Newmont expects Boddington and Phoenix to produce between 40,000 and 60,000 tonnes of copper in 2017, unchanged from previous guidance. Copper's CAS forecast was in the range of $1.45 and $1.65 per pound and AISC guidance remained between $1.85 and $2.05 per pound.
Newmont reiterated its capital guidance for 2017 to be in the range of $890 million and $990 million, including the remaining capital for the Northwest Exodus and Tanami expansions, the initial capital for Subika Underground, the Ahafo Mill Expansion, Twin Underground and Quecher Main.
Stock Performance Snapshot
November 28, 2017 - At Tuesday's closing bell, Newmont Mining's stock slightly climbed 0.11%, ending the trading session at $37.14.
Volume traded for the day: 4.24 million shares.
Stock performance in the last month – up 3.74%; previous six-month period – up 8.76%; past twelve-month period – up 11.03%; and year-to-date – up 9.01%
After yesterday's close, Newmont Mining's market cap was at $19.82 billion.
Price to Earnings (P/E) ratio was at 53.29.
The stock has a dividend yield of 0.81%.
The stock is part of the Basic Materials sector, categorized under the Gold industry. This sector was up 0.8% at the end of the session.
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