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Newmont's (NEM) Earnings and Revenues Beat Estimates in Q2
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Newmont Corporation (NEM - Free Report) reported second-quarter 2024 earnings from continuing operations of 73 cents per share compared with 19 cents in the year-ago quarter.
Barring one-time items, adjusted earnings were 72 cents per share compared with 33 cents reported in the prior-year quarter. It topped the Zacks Consensus Estimate of 53 cents.
NEM’s revenues for the second quarter were $4,402 million, up 64% from $2,683 million reported in the prior-year quarter. The figure topped the Zacks Consensus Estimate of $3,487 million. The increase in the top line was primarily due to higher year-over-year production and realized gold prices.
Newmont Corporation Price, Consensus and EPS Surprise
Newmont's attributable gold production in the second quarter of 1.61 million ounces was 30% higher than the prior-year quarter’s figure. The figure lagged our estimate of 1.72 million ounces.
Average realized prices of gold rose around 21% year over year to $2,374 per ounce. The figure was higher than our estimate of $2,025 per ounce.
The company’s costs applicable to sales (CAS) for gold were $1,152 per ounce, up 9% year over year. The figure was above our estimate of $1,057 per ounce.
All-in-sustaining costs (AISC) for gold were up around 6% year over year to $1,562 per ounce. The figure was above our estimate of $1,400 per ounce.
Financials
The company ended the quarter with cash and cash equivalents of $2,602 million, down 8% year over year. At the end of the quarter, the company had a long-term debt of $8,692 million, up 56% year over year.
Net cash from continuing operations amounted to $1,394 million in the reported quarter, up from $656 million in the year-ago quarter.
Outlook
Newmont anticipates maintaining its expected gold production for 2024 at about 6.9 million ounces, with production expected to be second-half weighted. NEM also projects a CAS for gold at $1,050 per ounce and an AISC of $1,400 per ounce.
Price Performance
Newmont’s shares have gained 9.4% in the past year compared with an 8.5% fall in the industry.
The Zacks Consensus Estimate for ASH’s current-year earnings is pegged at $4.56, indicating a year-over-year rise of 12%. ASH’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 5.3%. The company’s shares have increased 4.1% in the past year. It is slated to report fiscal third-quarter results on Aug 6.
The Zacks Consensus Estimate for Kinross's current-year earnings is pegged at 57 cents, indicating a rise of 30% from year-ago levels. KGC beat the consensus in the last four quarters, with the average earnings surprise being 46%. The stock has surged nearly 76.6% in the past year. It will report second-quarter results on Jul 31.
The Zacks Consensus Estimate for AEM’s current-year earnings is pegged at $3.42, indicating a year-over-year rise of 53%. The consensus estimate for AEM’s earnings has increased 8% in the past 60 days. AEM beat the consensus estimate in the last four quarters, with the average earnings surprise being 16.5%. The stock has rallied 42.7% in the past year.It is scheduled to release second-quarter results on Jul 31.
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Newmont's (NEM) Earnings and Revenues Beat Estimates in Q2
Newmont Corporation (NEM - Free Report) reported second-quarter 2024 earnings from continuing operations of 73 cents per share compared with 19 cents in the year-ago quarter.
Barring one-time items, adjusted earnings were 72 cents per share compared with 33 cents reported in the prior-year quarter. It topped the Zacks Consensus Estimate of 53 cents.
NEM’s revenues for the second quarter were $4,402 million, up 64% from $2,683 million reported in the prior-year quarter. The figure topped the Zacks Consensus Estimate of $3,487 million. The increase in the top line was primarily due to higher year-over-year production and realized gold prices.
Newmont Corporation Price, Consensus and EPS Surprise
Newmont Corporation price-consensus-eps-surprise-chart | Newmont Corporation Quote
Operational Highlights
Newmont's attributable gold production in the second quarter of 1.61 million ounces was 30% higher than the prior-year quarter’s figure. The figure lagged our estimate of 1.72 million ounces.
Average realized prices of gold rose around 21% year over year to $2,374 per ounce. The figure was higher than our estimate of $2,025 per ounce.
The company’s costs applicable to sales (CAS) for gold were $1,152 per ounce, up 9% year over year. The figure was above our estimate of $1,057 per ounce.
All-in-sustaining costs (AISC) for gold were up around 6% year over year to $1,562 per ounce. The figure was above our estimate of $1,400 per ounce.
Financials
The company ended the quarter with cash and cash equivalents of $2,602 million, down 8% year over year. At the end of the quarter, the company had a long-term debt of $8,692 million, up 56% year over year.
Net cash from continuing operations amounted to $1,394 million in the reported quarter, up from $656 million in the year-ago quarter.
Outlook
Newmont anticipates maintaining its expected gold production for 2024 at about 6.9 million ounces, with production expected to be second-half weighted. NEM also projects a CAS for gold at $1,050 per ounce and an AISC of $1,400 per ounce.
Price Performance
Newmont’s shares have gained 9.4% in the past year compared with an 8.5% fall in the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Newmont currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Ashland Inc. (ASH - Free Report) , Kinross Gold Corporation (KGC - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) . Ashland and Kinross sport a Zacks Rank #1 (Strong Buy) and Agnico holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ASH’s current-year earnings is pegged at $4.56, indicating a year-over-year rise of 12%. ASH’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 5.3%. The company’s shares have increased 4.1% in the past year. It is slated to report fiscal third-quarter results on Aug 6.
The Zacks Consensus Estimate for Kinross's current-year earnings is pegged at 57 cents, indicating a rise of 30% from year-ago levels. KGC beat the consensus in the last four quarters, with the average earnings surprise being 46%. The stock has surged nearly 76.6% in the past year. It will report second-quarter results on Jul 31.
The Zacks Consensus Estimate for AEM’s current-year earnings is pegged at $3.42, indicating a year-over-year rise of 53%. The consensus estimate for AEM’s earnings has increased 8% in the past 60 days. AEM beat the consensus estimate in the last four quarters, with the average earnings surprise being 16.5%. The stock has rallied 42.7% in the past year.It is scheduled to release second-quarter results on Jul 31.