Newmont Mining (NEM) Tops Q3 EPS by 3c, Revenues Miss

Newmont Mining (NYSE: NEM) reported Q3 EPS of $0.33, $0.03 better than the analyst estimate of $0.30. Revenue for the quarter came in at $1.73 billion versus the consensus estimate of $1.86 billion.

• Net income (loss): Delivered GAAP net income (loss) from continuing operations attributable to stockholders of $(161) million or $(0.31) per diluted share; delivered adjusted net income1 of $175 million or $0.33 per diluted share, down $0.01 compared to the prior year quarter
• EBITDA: Generated $636 million in adjusted EBITDA2, down $20 million from the prior year quarter
• Cash flow: Reported consolidated cash flow from continuing operations of $428 million and free cash flow3 of $154 million
• Gold costs applicable to sales (CAS)4: Reported CAS of $691 per ounce, lower than the Company’s full year guidance
• Gold all-in sustaining costs (AISC)5: Reported AISC of $927 per ounce, lower than the Company’s full year guidance
• Attributable gold production: Produced 1.29 million ounces of gold, in line with the Company’s full year guidance
• Portfolio improvements: Completed the CC&V concentrates project in North America; commissioned the primary crusher at Merian in South America; advanced the Tanami Expansion 2 project to definitive feasibility study in Australia; formed a strategic partnership with Evrim Resources in the Cuale gold project in Mexico; expanded regional exploration activities with an investment in Orosur Mining and an opportunity to participate in Miranda Gold’s Lyra project in Colombia
• Financial strength: Ended the quarter with $3.1 billion cash on hand and net debt of $1.1 billion; an industry-leading balance sheet with investment-grade credit profile; and a quarterly dividend declared of $0.14 per share, an increase of 87 percent over the prior year quarter
• Outlook: Improved 2018 corporate-level AISC per ounce and narrowed production outlook

“Newmont delivered $636 million in adjusted EBITDA and $154 million in free cash flow in the third quarter on the back of ongoing productivity improvements across the portfolio and higher grades in Africa and South America,” said Gary J. Goldberg, President and Chief Executive Officer. “We continued to advance profitable projects as we completed the CC&V concentrates project and commissioned the primary crusher at Merian, safely, on budget and on schedule. And we increased investment in Quecher Main, Subika Underground and the Ahafo Mill expansion during the period while increasing our dividend for the third quarter by 87 percent.”

For earnings history and earnings-related data on Newmont Mining (NEM) click here.

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