Newmont Mining Corporation (NYSE:NEM) take heat post earnings

Newmont Mining Corporation (NYSE:NEM) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $0.34 per share on revenue of $2.03B. Analysts had been modeling earning per share of $0.2 with $1.87B in revenue.

Newmont Mining Corporation (NYSE:NEM) announced first quarter results, including $227 million in free cash flow, and $803 million in adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA).

• Net income: Achieved adjusted net income¹ of $182 million, or $0.34 per basic share, compared to $229 million or $0.46 per share in the prior year quarter; GAAP net income attributable to shareholders from continuing operations was $78 million, or $0.15 per share, compared to $175 million or $0.35 per share in the prior year quarter


• Consolidated Adjusted EBITDA: Delivered Adjusted EBITDA of $803 million in the first quarter, compared to $815 million in the prior year quarter


• Consolidated cash flow: Generated cash from continuing operations of $524 million and free cash flow³ from continuing operations of $227 million, compared to $628 million and $344 million in the prior year quarter


• All-in sustaining costs (AISC): Improved gold AISC to $828 per ounce compared to $849 per ounce in the prior year quarter, and copper AISC to $1.33 per pound compared to $1.73 per pound in the prior year quarter


• Costs applicable to sales (CAS): Reported gold CAS of $638 per ounce⁵ compared to $614 per ounce in the prior year quarter, and copper CAS of $1.05 per pound compared to $1.35 per pound in the prior year quarter


• Attributable production: Delivered 1.23 million ounces and 38,000 tonnes of attributable gold and copper production, respectively, compared to 1.19 million ounces and 37,000 tonnes, respectively, in the prior year quarter


• Outlook: Improved 2016 cost outlook and maintained long term production and cost outlook, including profitable gold production of between 4.5 and 5.0 million ounces at AISC below $1,000 per ounce


• Portfolio: Merian, Long Canyon and the Tanami expansion are progressing on schedule; the Cripple Creek & Victor expansion reached first production at the new valley leach facility

Newmont Mining Corporation earnings per share showed a decreasing trend of -65.9% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 163%.Analysts project EPS growth over the next 5 years at 7.7%. It has EPS annual decline over the past 5 fiscal years of -39.5% when sales declined -4.1. It reported 3% sales growth, and -58% EPS decline in the last quarter.

The stock is trading at $32.41, up 111.4% from 52-week low of $15.39. The stock trades down -9.34% from its peak of $35.75 and 9.07% above the consensus price target of $35.35. Its volume clocked up at 18.52 million shares which is higher than the average volume of 8.84 million shares. Its market capitalization currently stands at $16.96B.