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Newmont Misses Estimates in 1Q - Analyst Blog
4/30/2013 11:48:00 AM
Gold mining giant Newmont Mining Corporation 's ( NEM ) first-quarter 2013 adjusted earnings of 71 cents a share were down 38.3% from last year's earnings of $1.15, missing the Zacks Consensus Estimate of 78 cents.
On a reported basis, the company posted a profit from continuing operation of $315 million or 63 cents per share in the quarter, down 44% from $561 million or $1.11 per share a year ago. The bottom line was hit by lower grade and recovery at Carlin, lower grade at Twin Creeks in Nevada and reduced concentrate sales due to shipping delays.
Newmont's revenues fell nearly 18.9% year over year to $2,177 million in the quarter, missing the Zacks Consensus Estimate of $2,319 million. Sales were affected by shipping delays.
Newmont's attributable gold and copper production was 1.165 million ounces and 38 million pounds in the quarter, down 11% and up 9%, respectively, from the prior-year quarter. Attributable gold and copper sales were 1.142 million ounces and 31 million pounds in the quarter, down 11% and 16%, respectively, from the year-ago quarter.
Gold and copper cost applicable to sales (CAS) was $758 per ounce and $2.19 per pound, up 22% and 11% year over year, respectively. All-in sustaining cost was $92 million, down 7% from the previous year quarter.
Gold production at the Nevada mine declined 12% year over year to 381,000 ounces in the reported quarter, due to lower grade and recovery at Mill 5 and Mill 6 and lower grade at the Twin Creeks autoclave, partially offset by new production at Emigrant and higher throughput at Phoenix. Production at La Herradura increased 2% year over year to 55,000 ounces, due to higher leach placement and grade.
Gold production at Yanacocha in Peru plunged 22% year over year to 147, 000 ounces on account of lower mill grade and lower leach ore placement from Chaquicocha. Gold production at La Zanja was roughly15, 000 ounces.
Gold and copper production at the Boddington mine in Australia increased 9% and 29% year over year, respectively, to 177,000 ounces and 18 million pounds, respectively, in the reported quarter, based on higher mill grade.
Other Australia/New Zealand
Gold production at the mines in Other Australia/New Zealand zone decreased 4% year over year to 258,000 ounces in the reported quarter, due to lower mill grade at Jundee, Kalgoorlie and Tanami coupled with lower throughput at Tanami,, partly offset by higher throughput at Waihi.
At the Batu Hijau mine in Indonesia, both gold and copper production decreased 36% and 5% year over year, respectively, to 7,000 ounces and 20 million pounds, respectively, in the reported quarter on account of lower grade and recovery resulting from the processing of lower grade stockpiled material.
Newmont, which is among the prominent players in the gold-mining industry along with Barrick Gold Corporation ( ABX ), Goldcorp Inc . ( GG ) and Kinross Gold Corporation ( KGC ), expects gold production to be roughly 4.8 million to 5.1 million in 2013.
Copper production is anticipated to be in the range of 150
million to 170 million pounds. In the second half of the year,
planned production is anticipated to increase owing to greater
mill throughput in Nevada and start up of the first production
line at the Akyem mine in Ghana. Newmont also expects to ramp up
Phase 6 ore mining at Batu Hijau in Indonesia late next year to
improve free cash flow in 2014 and 2015.
BARRICK GOLD CP (ABX): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
KINROSS GOLD (KGC): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
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