uploads/2019/04/bullion-1744773_1280.jpg

What’s in the Cards for Newmont Mining’s Q4 Results?

By

Updated

Newmont Mining’s earnings

Newmont Mining (NEM) is slated to release its Q1 2019 earnings on April 25 before the market opens. It plans to hold a conference call the same day at 9:00 AM ET. During its fourth-quarter results, it reported EPS of $0.40, beating the consensus estimate by $0.16. Its revenue of $2.05 billion also beat estimates by 9.0%.

Article continues below advertisement

Newmont-Goldcorp Merger

As we highlighted in Newmont and Goldcorp Merge, Form World’s Largest Gold Company, on April 18, the merger of Newmont and Goldcorp was completed, resulting in the world’s largest gold miner. This merger combined Newmont’s 68.5 million ounces and Goldcorp’s 52.8 million ounces to form the world’s largest asset base. The combined entity would also have the largest gold reserve and resource base and the highest gold reserves per share in the world.

For Q1, the combined company is to present its results, and it will be interesting for investors to get insight into the synergy benefits the company expects from the merger. It should also be insightful to see the combined guidance from the company.

Increased shareholder returns

Increased shareholder returns were the main motivation behind the Newmont Mining and Goldcorp merger. The combined entity will likely focus on advancing projects that meet its minimum hurdle rate of 15%. The merged company is targeting $1 billion–$1.5 billion in asset divestitures over the next two years. The company has already identified $100 million in annual pre-tax savings. The company is expected to deliver the highest dividend among senior gold producers (GDX). It should be interesting to look for any updates to these targets on the company’s conference call.

Advertisement

More From Market Realist