Newmont Mining beats by $0.15, beats on revs; provides 2016 production outlook 

  • Reports Q1 (Mar) earnings of $0.34 per share, excluding non-recurring items, $0.15 better than the Capital IQ Consensus of $0.19; revenues rose 3.0% year/year to $2.03 bln vs the $1.87 bln Capital IQ Consensus.

  • Attributable production totaled 1.23 million ounces, compared to 1.19 million ounces in the first quarter of 2015. During the quarter, higher production at Batu Hijau and Kalgoorlie and inclusion of CC&V more than offset declining production at Yanacocha and the sale of Waihi. Attributable copper production totaled 38,000 tonnes compared to 37,000 tonnes in the year ago period as Batu Hijau continued to mine higher grade ore.

  • Capital expenditures for the first quarter were $297 million, including $111 million of sustaining capital.

2016 Outlook:

  • Attributable gold production is expected to increase from between 4.8 and 5.3 million ounces in 2016 to between 5.2 and 5.7 million ounces in 2017, and remain stable at between 4.5 and 5.0 million ounces through 2020.

  • Attributable copper production is expected to be between 120,000 and 160,000 tonnes in 2016 and 2017 before decreasing to between 70,000 and 110,000 tonnes by 2018. The decline is due to the depletion of higher grade Phase 6 ore at Batu Hijau in 2018. Production at Phoenix Copper Leach and Boddington is expected to remain stable for the period.

  • 2016 sustaining capital is expected to be between $700 and $750 million increasing to between $800 and $900 million in 2017 to cover equipment rebuilds, water treatment and tailings storage facilities.