2023-10-26 14:28:15 ET
- Newmont ( NYSE: NEM ) +2.3% in Thursday's trading despite missing Q3 adjusted earnings expectations and cutting full-year guidance, as some analysts speculate investor focus may be targeting upcoming benefits from the gold miner's takeover of Newcrest Mining, which is set to close November 6.
- "Newmont's operations are poised to improve starting in the fourth quarter... we anticipate significant synergies and per-share accretion" from the Newcrest deal, CFRA Research's Matthew Miller said.
- Q3 net income from continuing operations fell to $157M, or $0.20/share, from $218M in the year-earlier quarter, mostly due to lower sales volumes as a result of the Peñasquito labor strike, as well as higher reclamation and remediation charges.
- Newmont ( NEM ) was forced to suspend operations at the Peñasquito mine in Mexico in June, but it reached a resolution with the workers union earlier this month and expects to return to full productivity in the next 2-3 weeks.
- The strike impact caused Newmont's ( NEM ) Q3 attributable gold production to fall 13.4% Y/Y to 1.29M oz, below the 1.41M oz analyst consensus estimate, prompting the miner to lower its full-year gold production guidance to ~5.3M oz from a prior forecast for 5.7M-6.3M oz and below the ~5.5M oz analyst consensus .
- Citi analyst Alexander Hacking maintained his Buy rating and $60 price target, but he said Q3 results were "weak" and production was 9% below Citi estimates and expected the stock to underperform today "following another lackluster quarter," according to Bloomberg.
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Newmont shares push higher despite Q3 miss, full-year production guidance cut