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$NEM 1Q15 10-Q: Sales by geography: North America, $520MM vs. $558MM in 1Q14; South America, $301MM vs. $265MM in 1Q14; Asia Pacific, $890MM vs. $647MM in 1Q14; Africa, $261MM vs. $294MM in 1Q14. CapEx by geography: North America, $89MM; South America, $15MM; Asia Pacific, $60MM; Africa, $32MM.
For 2018, Denver-based miner $NEM increased its gold production outlook and lowered its cost expectations. Gold production is now expected to increase to 4.9-5.4MM ounces compared with previous estimate of 4.7-5.2MM ounces and cost expectations improved to $700-750 per ounce from the prior estimate of $700-800 per ounce.
$NEM entered into an agreement with Compagnie Miniere Esperance to further explore the prospective Esperance gold discovery in French Guiana. The agreement entitles Newmont to earn up to a 70% interest in the property through multi-year investments. n 2017, Newmont increased its exploration and advanced projects investments by approx. 25%.
$NEM swung to profit in 3Q17, helped by higher gold production and lower income taxes. Net income was $206MM or $0.38 per share compared to a loss of $358MM or $0.67 per share in 3Q16. Net income from continuing operations rose 26% to $213MM or $0.39 per share. Revenue grew 5% to $1.9Bil and gold production was up 7% to 1.3MM ounces.
$NEM's subsidiary, Newmont Suriname, completed its first full year of production at the Merian gold mine in the mid-eastern part of Suriname. During this period, Newmont Suriname reported generating $34MM in royalties to the government, paid direct wages of $12MM, and purchased $2.2MM in goods and services from local vendors and suppliers.
$NEM entered an agreement to invest about $109MM for 19.9% ownership of Toronto-listed Continental Gold Inc., supporting near-term development of the high-grade Buriticá gold project in Colombia. The investment also covers three other exploration assets in the prospective gold district.
$NEM improved FY17 guidance for gold production to 4.9-5.4MM ounces as production at Merian and Long Canyon offsets declines at Twin Creeks and Yanacocha. Africa guidance was also improved following the inclusion of the Subika Underground and Mill Expansion projects. Production is expected between 725,000 and 785,000 ounces in 2017.
Mining company $NEM posted 13% growth in revenue to $1.7Bil in 1Q17, primarily due to increased volumes and slightly higher pricing. However, net income attributable to Newmont stockholders fell to $46MM, or $0.09 per share, from $52MM, or $0.10 per share in 1Q16, hurt by higher gold costs. Excluding items, EPS was $0.25.
For 2017, $NEM expects gold production to increase to between 4.9MM and 5.4MM ounces as full year production at Merian and Long Canyon more than offsets lower production at Twin Creeks and Yanacocha. In addition, the company expects production in 2018 to decline slightly to between 4.6MM and 5.1MM ounces.
$NEM generated $1.1Bil through asset sales in 2016 and increased cash on hand to $2.8Bil. The company said its $6Bil of liquidity includes a $3Bil undrawn revolver and allows the company to invest in best growth options and to pursue opportunistic M&A.
In 2016, $NEM added 4.1MM ounces of gold reserves by the drill bit, with particularly strong results at Tanami and Merian. The company said it improved reserve grade by 13% through high-grade additions and the sale of PTNNT, which helped to partially offset depletion of 6MM ounces and divestment of 2.6MM ounces.
$NEM's revenue rose 23% to $1.79Bil in 4Q16, helped by higher gold sales and improved pricing. Gold production was up by 17% to 1.3MM ounces. For 2017, North American gold production is expected to increase to 2.0-2.2MM ounces, South America to rise to 630,000-690,000 ounces, while Australia production to remain stable at 1.5-1.7MM ounces.