Newmont Goldcorp Corporation NEM 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-eps-surprise-chart | Newmont Mining Corporation Quote
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.
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.
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.
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.
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.
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.
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.
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, Kinross Gold Corporation KGC and Arconic Inc ARNC, 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.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Newmont Mining Corporation (NEM) : Free Stock Analysis Report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Arconic Inc. (ARNC) : Free Stock Analysis Report
Silver Standard Resources Inc. (SSRM) : Free Stock Analysis Report
To read this article on Zacks.com click here.