Can Newmont Mining Outperform Its Peers in 2019?

Newmont Mining (NEM) reported its fourth-quarter earnings results before the market opened on February 21. The company held its conference call the same day.

Newmont Mining reported an EPS of $0.40, which beat the consensus estimate by $0.16. The company’s revenues of $2.05 billion also beat the estimate by 9.0%. Newmont Mining’s third-quarter earnings results beat analysts’ consensus expectations.

Newmont Mining’s attributable gold (GLD) production was 1.44 million ounces—a rise of 8.0% YoY (year-over-year). The company achieved all-in sustaining costs of $845 per ounce in the fourth quarter—down 9% YoY mainly due to higher sales and lower sustaining capital.

Newmont Mining stock has underperformed its peers (GDX) and broader markets (SPY) year-to-date with a gain of 2.2% as of February 21. Goldcorp (GG), Yamana Gold (AUY), and Kinross Gold (KGC) have outperformed Newmont Mining with gains of 17.4%, 14.4%, and 12.7%, respectively.

The next major catalyst for Newmont Mining stock remains its merger proceedings with Goldcorp. On January 14, Newmont Mining and Goldcorp (GG) announced that they entered into an agreement. Newmont Mining will acquire all of the outstanding Goldcorp shares in a stock-for-stock transaction valued at $10 billion. Read Could the Newmont-Goldcorp Merger Form ‘The Go-To Gold Equity’ to learn more. Barrick Gold (GOLD) and Randgold Resources’ merger was announced in September 2018 and completed in January 2019.

In this series, we’ll analyze Newmont Mining’s latest results and its performance forecast. We’ll also discuss the company’s production profile, cost profile, balance sheet strength, and growth options. Next, we’ll discuss Newmont Mining’s production profile.