Newmont Mining Earnings Cheat Sheet: The Gold Bulls Keep Winning

S&P 500 (NYSE:SPY) component Newmont Mining Corporation (Holding Company) (NYSE:NEM) reported its results for the first quarter. Newmont Mining Corp. explores and acquires gold properties and produces copper.

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Newmont Mining Corporation (Holding Company Earnings Cheat Sheet for the First Quarter

Results: Net income for Newmont Mining Corporation (Holding Company) rose to $670 million ($1.03/share) vs. $546 million ($1.11/share) YoY. A rise of 22.7% from the year earlier quarter.

Revenue: Rose 9.9% to $2.46 billion YoY.

Actual vs. Wall St. Expectations: NEM (NYSE:NEM) beat the mean analyst estimate of $1.01/share. Estimates ranged from 88 cents per share to $1.27 per share.

Quoting Management: “In the first quarter Newmont’s continued focus on execution led to strong operating and financial results backed by a rock solid balance sheet,” commented Richard O’Brien, President and CEO. “Based on strong early year performance, we are maintaining our 2011 Outlook for production, CAS, and Capex. While execution remains foundational, we have also embarked on delivering on our future growth plan, as we have recently announced our full funds construction decision for our Akyem project in Ghana, successfully closed our acquisition of Fronteer Gold, and reported a 44% increase in exploration spending over last year. Such actions reflect our plans highlighted at our recent Investor Day to produce up to seven million ounces of gold and 400 million pounds of copper per annum by 2017 through the development of our highest returning projects in each of our four operating regions.”

Key Stats: The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 45.5% and in the third quarter of the last fiscal year, the figure rose 38.4%.

Gross margins grew 2.8 percentage points to 61.9%. The growth seemed to be driven by increased revenue, as the figure rose 9.9% from the year earlier quarter while costs rose 2.4%.

Over the last five quarters, revenue has increased 23.3% on average year over year. The biggest increase came in the first quarter of the last fiscal year, when revenue rose 44.5% from the year earlier quarter.

Competitors to Watch: AngloGold Ashanti Ltd. (NYSE:AU), Freeport-McMoRan (NYSE:FCX), Royal Gold (NASDAQ:RGLD), Vista Gold (AMEX:VGZ), Goldcorp (NYSE:GG), Gold ishares (NYSE:GLD), Gold Juniors (NYSE:GDXJ), Kinross Gold (NYSE:KGC), Alto (ALTO), Silver ishares (NYSE:SLV), Barrick Gold Corporation (NYSE:ABX), and Gold Fields Ltd. (NYSE:GFI).

Today’s Performance: Shares of NEM (NYSE:NEM) are trading at $58.85 as of April 21, 2011 at 9:39 AM ET, up from the previous close.


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