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Newmont Goldcorp

GREENWOOD VILLAGE, Colo. (AP) — Newmont Goldcorp Corp. on Thursday reported a second-quarter loss of $25 million, after reporting a profit in the same period a year earlier.

The company said it had a loss of 3 cents per share. Earnings, adjusted for non-recurring costs and to account for discontinued operations, came to 12 cents per share.

The results missed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 23 cents per share.

The results are the first to include both Goldcorp ad Newmont operations following their merger in April.

The company posted revenue of $2.26 billion in the quarter.

Newmont shares have risen 13% since the beginning of the year, while the Standard & Poor’s 500 index has risen 20%. The stock has risen roughly 6% in the last 12 months.

“Newmont Goldcorp delivered $679 million in adjusted EBITDA in the second quarter of 2019 as the Goldcorp integration process is well underway and on track to deliver an additional $365 million in annual cash flow,” CEO Gary J. Goldberg said. “Our proven strategy is driving improvements across the newly combined portfolio. Closing the Goldcorp acquisition, coupled with the successful close of the Nevada Gold Mines joint venture, has positioned Newmont Goldcorp as the world’s leading gold business for decades to come.”

Goldberg was referring to Newmont’s deal with Barrick Gold Corp. in which Nevada mines are operated by Barrick with 61.5% ownership while Newmont owns 38.5%. The joint venture went into effect on July 1.

“Newmont Goldcorp will proportionately consolidate its ownership interest in Nevada Gold Mines and will report the Company’s interest in the joint venture as a separate segment in its consolidated financial statements beginning in the third quarter of 2019,” the company stated Thursday.

Newmont Goldcorp reported that the average realized price for gold in the second quarter was $1,317, an increase of $25 per ounce over the prior year quarter. The average realized price for copper was $2.48, a decrease of $0.51 per pound.

Nevada production is expected to be 1.5 million ounces in 2019. The outlook has been adjusted by approximately 70,000 ounces to reflect remediation work at Gold Quarry, where a slide last year affected access to the Chukar underground mine.

Gold cost applicable to sales is expected to be $795 per ounce in Nevada this year. Gold all-in sustaining cost is expected to be $990 per ounce after adjustment for Gold Quarry.

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