Newmont Mining Corp Q4 Profit Falls Short, But Revenue Beats The Street
Newmont Mining Corp (NYSE:NEM) late Tuesday [Feb 21, 2017 | 4:41pm] posted mixed fourth quarter earnings results, as profits fell short of expectations but revenue beat estimates.
Written by StockNews.com
The Greenwood Village, Colorado gold mining giant reported adjusted Q4 EPS of $0.25, which was $0.06 worse than the Wall Street consensus estimate of $0.31.
Revenues jumped 23.2% from last year to $1.79 billion, however, topping analysts’ view for $1.75 billion.
Looking ahead, NEM said it expects slightly higher gold costs for 2017 and 2018. Its economic assumptions also include $1,200 per ounce gold, $2.25 per pound copper, and $55 per barrel of WTI crude oil.
As previously expected, gold production should increase to between 4.9 and 5.4 million ounces in 2017. Cash cost per ounce is expected to be between $700 and $750 per ounce in 2017 and between $700 and $800 per ounce in 2018.
The company commented via press release:
We continued to make Newmont a safer and more profitable business in 2016, with differentiated cash flow, financial strength and growth prospects, said Gary Goldberg, President and Chief Executive Officer. We increased adjusted EBITDA by 25 percent to $2.4 billion and more than doubled free cash flow to nearly $800 million on the back of superior operational performance. We invested these proceeds with an eye to long-term value creation – building two mines, advancing profitable expansions in the Americas and Australia, and adding higher grade ounces to our reserve base. Work to optimize our portfolio culminated in the sale of our PTNNT stake for $920 million. These proceeds helped us retire more than $1.3 billion in debt, improve our liquidity and increase dividends. Our plans for 2017 and beyond remain focused on improving our underlying business, strengthening our portfolio and creating value for shareholders.
...Year-to-date, NEM has gained 9.89%, versus a 5.80% rise in the benchmark S&P 500 index during the same period.
NEM currently has a StockNews.com POWR Rating of B (Buy), and is ranked #2 of 29 stocks in the Miners – Gold category.
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