Newmont CEO Gary Goldberg
US gold miner Newmont Mining on Thursday reported stronger fourth-quarter results, aided by lower costs and production growth, which managed to offset lower metal prices.
The company, which will soon merge with Canadian miner Goldcorp to become the world’s largest gold miner, reported adjusted net income of $214-million, or $0.40 a share, compared with $206-million, or $0.23 a share, in the prior-year quarter.
The quarterly performance exceeded analyst estimates, which, according to Reuters, on average called for a $0.25 a share performance.
Excluding one-time items, Newmont reported a net loss of $3-million, compared with net income of $214-million in the fourth quarter of 2017.
Fourth-quarter revenue rose by 6% year-on-year to $2.05-billion, mainly owing to higher gold production, which was partially offset by an 18% decrease in the average realised price of copper and a 3% dip in the gold price.
The group’s quarterly gold production jumped 8% to 1.44-million ounces on the back of higher grades and recovery at mines in the US and Ghana.
For the full year, adjusted net income was $718-million, or $1.34 a diluted share, compared with $774-million, or $1.45 a diluted share, from the prior year. Revenue increased by 2% to $7.25-billion.
Attributable gold production decreased by 3% to 5.10-million ounces and copper output fell by 4% to 49 000 t.
The gold was produced at an all-in sustaining cost (AISC) of $909/oz, which is a 2% increase owing to higher costs applicable to sales. The copper AISC jumped 12% to $2.02 for the full year.
CEO Gary Goldberg pointed out in a statement that Newmont generated $2.6-billion in adjusted earnings before interest, taxes, depreciation and amortisation, as well as $805-million in free cash flow, while returning $400-million to shareholders.
“This performance gave us the means to complete expansions in the US and Africa, advance projects and exploration on four continents, and pursue an agreement to create the world’s leading gold business as measured by assets, people, prospects and value,” he said.
Newmont is forecasting attributable gold production of 5.2-million ounces at an AISC of $935/oz in 2019. Of the total output, 1.9-million ounces would be produced by operations in North America, 650 000 oz in South America, 1.5-million ounces in Australia and 1.1-million ounces in Africa.
Attributable copper output is forecast to be 45 000 t in 2019 and 2020.