Newmont Mining Reports Lower Earnings; Misses Estimates (NEM)

Newmont Mining Reports Lower Earnings; Misses Estimates (NEM)


Gold producer, Newmont Mining Corp (NEM) reported a drop in first quarter earnings on Monday, missing analysts estimates.

The Greenwood Village, CO based company reported a -36% decline in first quarter earnings to $315 million, or 63 cents per share, down from $490 million, or 97 cents per share last year. Adjusted income was $354 million, or 71 cents per share, down from $578 million, or $1.15 per share last year. On average, Wall Street analysts expected to see earnings of 77 cents per share. The drop in earnings was primarily due to lower production and higher costs.

Revenue for the quarter came in at $2.18 billion, down -19% from $2.68 billion last year. Analysts expected to see revenue of $2.27 billion.

Gold production dropped -11% during the quarter to 1.165 million ounces. On the upside, copper production increased 9% to 38 million pounds.

Looking forward, the company has reduced its capital expenditure outlook for FY2013 by $100 million to a range of $2 billion to $2.2 billion. Newmont also lowered its consolidated capital expenditure outlook by $100 million to a range of $2.3 billion to $2.5 billion.

The company maintained its prior gold production outlook of 4.8 million to 5.1 million ounces. Copper production is expected to be between 150 million and 170 million pounds.

Newmont shares were down 91 cents, or -2.68% during premarket trading Tuesday. The stock has declined -29% in the past year.

The Bottom Line
Shares of Newmont Mining Corp (NEM) have a 4.12% yield, based on Monday’s closing price of $33.97.

Newmont Mining Corp (NEM) is not recommended at this time, holding a DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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