Analysts’ revenue expectations

Analysts’ revenue expectations help decipher their outlook regarding miners’ production and precious metal prices.

Gold Miners: Analysts’ Revenue Expectations

According to the consensus estimate compiled by Thomson Reuters, analysts expect Barrick Gold (GOLD) to see revenues of $2.14 billion in the second quarter, which implies potential rises of 2.4% sequentially and 25.2% YoY (year-over-year) due to Barrick Gold’s merger with Randgold. The merger was completed on January 1. Without the merger, Barrick Gold’s production profile was declining.

Analysts expect Newmont Mining’s (NEM) revenues to rise 48.9% YoY to $2.47 billion in the second quarter. The company’s merger with Goldcorp was completed in April. The merger should provide upside to Newmont Mining’s production and drive its revenues going forward.

Kinross Gold and Agnico Eagle Mines

Kinross Gold’s (KGC) revenue estimate for the first quarter is $811 million, which implies a potential YoY rise of 4.6%. The company’s production guidance suggests a 6.4% YoY fall in its production. Kinross Gold’s Bald Mountain Vantage Complex is expected to start up in the second quarter, which should drive the revenue growth.

Analysts expect Agnico Eagle Mines (AEM) to report revenues of $522 million in the second quarter, which implies a decline of 6.1% from the second quarter of 2018. Most of the company’s projects are kicking in during the second half of the year. Agnico Eagle Mines’ revenues are expected to increase 8.6% in 2019. After rising 8.6%, analysts expect the company’s revenues rise 16% in 2020.

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