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Is Newmont Mining Finally on Track after 1Q17?

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Is Newmont Mining Finally on Track after 1Q17? PART 1 OF 7

Interpreting Newmont Mining’s 1Q17 Earnings Beat

Newmont Mining’s earnings beat

Newmont Mining (NEM) released its 1Q17 earnings after the market closed on April 24, 2017, and held its earnings call on April 25. The company reported adjusted EPS (earnings per share) of $0.25, as compared to the consensus estimate of $0.23. However, NEM slightly missed the consensus revenue estimate of $1.73 billion, delivering a top line of $1.66 billion.

Interpreting Newmont Mining&#8217;s 1Q17 Earnings Beat

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Stock price reaction

Newmont Mining’s earnings beat was mainly due to the company’s higher-than-expected production. The company even raised its long-term production forecast and lowered its cost guidance. The improvement in guidance was due to its expansions at a mine in Ghana.

After the earnings call, Newmont’s stock lost ~2.4%. But investors should note that April 25, 2017, was a down day for the gold sector as a whole. Newmont fell relatively less, while the VanEck Vectors Gold Miners ETF (GDX) fell by 4.2% in comparison. Barrick Gold (ABX), which released its 1Q17 on the same day, fell 11.2% after reporting an earnings miss. Goldcorp (GG), Kinross Gold (KGC), and Yamana Gold (AUY) fell 3.2%, 6.6%, and 7.1%, respectively.

In this series, we’ll explore Newmont Mining’s (NEM) 1Q17 earnings in detail. We’ll also cover key points from the company’s 1Q17 earnings conference call.

Let’s start by looking at NEM’s 1Q17 production and revenues.

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