A Cave-In at Newmont in 2005: Fool by Numbers

On Feb. 27, Newmont Mining (NYSE: NEM  ) released Q4 and full fiscal 2005 earnings for the period ending Dec. 31, 2005.

  • Sales of $4.4 billion were essentially flat from the year before and missed analyst expectations. The bottom line was no better. Net income before a lot of one-time items was $0.84, or two cents below Street projections.
  • Worse, management says 2006 will mark the third straight year of declining sales volume. Ouch.
  • Maybe Fellow Fool Rick Munarriz is right. Maybe I'd better take Google over gold. (But maybe I should listen to the other argument first.)

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2005

FY 2004

% Change

Sales

$4,490

$4,406

$4,411

(0.1%)

Net Profit

--

$322

$443

(27.3%)

EPS

$0.93

$0.72

$1.00

(28.0%)



Get back to basics with a look at the income statement.

Margin Checkup

FY 2005

FY 2004

% Change

Gross Margin

47.34%

49.78%

(2.44%)

Op. Margin

24.15%

25.19%

(1.04%)

Net Margin

7.31%

10.04%

(2.73%)



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2005

FY 2004

% Change

Cash+ ST Invest.

$1,899

$1,724

10.2%

Inventory

$320

$244

31.1%

Accounts Rec.

$136

$130

4.6%



Liabilities

Long-Term Debt

$1,929

$1,602

20.4%

Accounts Pay.

$232

$222

4.5%



Cash Flow Highlights

FY 2005

FY 2004

% Change

Cash From Ops

$1,243

$1,557

(20.2%)

Capital Expend.

$1,251

$718

74.2%

Free Cash Flow

$(8)

$839

N/A



Find out why Fools always follow the money.

Related Companies:

  • AngloGold Ashanti (NYSE: AU  )
  • Barrick Gold (NYSE: ABX  )
  • Cambior (NYSE: CBJ  )
  • Goldcorp (NYSE: GG  )
  • Golden Star (NYSE: GSS  )
  • Placer Dome (NYSE: PDG  )

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.

Fool contributorTim Beyersdidn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.


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