Summary
Newmont Mining Corporation's (NEM) Q2 2015 filing reveals a mixed financial performance. While sales increased year-over-year, driven by higher gold and copper volumes, net income attributable to stockholders decreased significantly, primarily due to lower realized commodity prices and increased tax expenses. The company successfully raised capital through a stock issuance to fund the acquisition of the Cripple Creek & Victor mine, expected to close in Q3 2015. Despite operational improvements and cost reductions, the company continues to navigate volatile commodity markets and company-specific challenges, such as ongoing contract renegotiations in Indonesia, which could impact future results.
Financial Highlights
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Financial Statements
Beta
| Gross Profit | $366.00M |
| R&D Expenses | $33.00M |
| Operating Expenses | $1.50B |
| Operating Income | $18.00M |
| Net Income | $72.00M |
| EPS (Basic) | $0.14 |
| EPS (Diluted) | $0.14 |
| Shares Outstanding (Basic) | 505.00M |
| Shares Outstanding (Diluted) | 506.00M |
Key Highlights
- 1Sales increased to $1.908 billion for Q2 2015 and $3.880 billion for the first half, up from $1.765 billion and $3.529 billion in the respective prior periods, driven by higher gold and copper volumes.
- 2Net income attributable to Newmont stockholders decreased to $72 million ($0.14 per share) in Q2 2015 from $180 million ($0.36 per share) in Q2 2014. The first half saw a decrease to $255 million ($0.51 per share) from $280 million ($0.56 per share).
- 3The company raised $675 million in net proceeds from a common stock issuance to fund the acquisition of the Cripple Creek & Victor mine, expected to close in Q3 2015.
- 4Costs applicable to sales per ounce of gold decreased by 14% in Q2 and 17% in the first half, attributed to cost-saving initiatives, lower fuel prices, and favorable currency movements.
- 5Costs applicable to sales per pound of copper increased in Q2 and the first half compared to the prior year, impacted by renegotiations with the Indonesian government for copper concentrate exports.
- 6The company reported significant increases in consolidated copper production due to higher ore grades and the easing of export restrictions in Indonesia.
- 7The company's effective tax rate increased substantially in Q2 2015 to 51% from (58%) in Q2 2014, and for the first half to 48% from 10% in the prior year, primarily due to a change in valuation allowance and other tax adjustments.