Summary
Newmont Corporation (NEM) reported its first-quarter 2014 financial results, showing a significant decrease in net income attributable to stockholders to $100 million ($0.20 per share) from $314 million ($0.63 per share) in the prior year's first quarter. This decline was primarily driven by lower average realized gold and copper prices and increased unit costs for both metals, partially offset by higher gold sales volumes and a gain on asset sales. Operationally, consolidated gold production remained relatively flat year-over-year, while copper production saw an increase. The company's cash flow from operations also decreased significantly compared to the prior year, reflecting the lower profitability. Management highlighted strategic capital allocation towards sustaining projects and managing its project pipeline for flexibility. The company is navigating various operational and regulatory challenges, including a notable legal claim related to the Choropampa mercury spill in Peru and ongoing discussions with the Indonesian government regarding copper concentrate exports.
Financial Highlights
51 data points| Gross Profit | $363.00M |
| R&D Expenses | $42.00M |
| Operating Expenses | $1.57B |
| Operating Income | $117.00M |
| Net Income | $100.00M |
| EPS (Basic) | $0.20 |
| EPS (Diluted) | $0.20 |
| Shares Outstanding (Basic) | 498.00M |
| Shares Outstanding (Diluted) | 499.00M |
Key Highlights
- 1Net income attributable to Newmont stockholders decreased significantly to $100 million ($0.20/share) in Q1 2014 from $314 million ($0.63/share) in Q1 2013, driven by lower commodity prices and higher costs.
- 2Sales for the quarter were $1,764 million, a decrease from $2,188 million in the prior year's first quarter, primarily due to lower gold and copper prices.
- 3Consolidated gold production was 1.3 million ounces, largely in line with 1.28 million ounces in Q1 2013.
- 4Consolidated copper production increased to 35 thousand tonnes from 29 thousand tonnes in Q1 2013, benefiting from the new Phoenix copper leach facility.
- 5Cash flow from operations decreased to $180 million in Q1 2014 from $433 million in Q1 2013, impacted by lower profitability.
- 6Capital expenditures decreased to $178 million in Q1 2014 from $507 million in Q1 2013, with a focus on sustaining projects.
- 7The company is facing legal and regulatory challenges, including a royalty dispute related to discontinued operations and potential impacts from new Indonesian export regulations for copper concentrate.