Newmont’s 2Q15 earnings
In its 2Q15 earnings release, Newmont Mining (NEM) reported net income attributable to shareholders of $131 million, or $0.26 per share. This compares to $101 million, or $0.20 per share, in 2Q14. The company also generated cash flow of $441 million and free cash flow of $119 million.
Gold and copper AISC (all-in sustaining costs) was $909 per ounce and $1.61 per pound, respectively. These figures are significantly lower than 2Q14 costs of $1,063 per ounce and $3.69 per pound, respectively. Newmont has been successful in achieving cost savings for the last few quarters. We’ll look at the reasons responsible for this in detail later in the series.
In the above chart, you can see Newmont’s 2Q15 earnings year-over-year.
Kinross Gold (KGC) is expected to release its earnings on July 29. Goldcorp (GG) and Barrick Gold (ABX) will release their 2Q15 earnings on July 30 and August 5, respectively. Investors can access the gold industry through gold-backed ETFs such as the SPDR Gold Shares (GLD) and the VanEck Vectors Gold Miners ETF (GDX). GDX invests in senior and intermediate gold stocks. KGC and GG account for 10% of its holdings.
2015 guidance upgraded
For 2015, management upgraded its full-year outlook for gold production to 4.7–5.1 million ounces at costs attributable to sales between $660 and $710 per ounce. AISC guidance has also been upgraded to $920–$980 per ounce from $960–$1,020 per ounce previously. We’ll look at the reasons for these upgrades later in the series.