Newmont Goldcorp Corp. has topped earnings expectations just days after taking the crown as the world’s biggest gold company, but mine disruptions are leaving analysts with some unanswered questions.
Last week, Colorado-based Newmont Goldcorp – formerly Newmont Mining Corp. – closed its US$10-billion acquisition of Vancouver-based Goldcorp Inc. The deal vaulted Newmont Goldcorp ahead of Toronto-based Barrick Gold Corp., making it the biggest gold miner by production, value and reserves.
As part of the deal, Newmont Goldcorp acquired a suite of new mines and development projects across North and South America. Newmont Goldcorp previously said the combination should lead to cost savings of US$365-million a year.
On Thursday, Newmont Goldcorp issued its results for the first quarter ended March 31, before the Goldcorp acquisition had closed.
Newmont Goldcorp earned net income of US$113-million, or 21 US cents a share, down from US$176-million, or 32 US cents, in the same period last year. The fall in profit was mainly owing to integration costs from acquiring Goldcorp. On an adjusted basis, profit was 33 US cents a share, six US cents higher than predicted.
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