An image of a person looking at a financial report
Markets

Newmont Mining's Q4 2016 Earnings Preview: Higher Gold Prices To Translate Into Improved Earnings Results

Newmont Mining will release its fourth quarter earnings results on February 21 and conduct a conference call with analysts the next day. We expect higher gold prices over the course of the fourth quarter to translate into higher earnings for Newmont.

Gold prices rose sharply in Q3 2016, driven by the safe-haven investment demand for the yellow metal. Heightened macroeconomic uncertainty in the wake of the UK's June 23 EU referendum and concerns over global economic growth drove the investment demand for gold, resulting into a sharp increase in gold prices in the third quarter of last year. Though prices fell in the fourth quarter in anticipation of an interest rate hike by the Fed in December, they averaged higher on a year-over-year basis.

On the cost side, a combination of operational improvements and non-core asset sales is expected to keep costs relatively flat for Newmont Mining. With costs in check, a more favorable gold pricing environment should enable Newmont Mining to report improved fourth quarter earnings. The following tables summarize our expectations from the company's Q4 result.

NEM Q4 2016 Earnings Preview 1

Have more questions about Newmont Mining? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Newmont Mining

See More at Trefis |View Interactive Institutional Research(Powered by Trefis)

Get Trefis Technology

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

FCX NEM

Other Topics

Stocks US Markets Investing

Latest Markets Videos