How does Newmont's 2018 revenue growth compare with that in prior periods and what is the forecast?
Change in Total Revenue
Total Revenue for Newmont Mining decreased by 1.7% (y-o-y) in 2018, primarily driven by lower gold and copper shipments along with lower copper prices, compared to a revenue growth of 10.5% in 2017 over 2016.
For 2019, we expect revenue to increase by 3.2% on the back of higher production along with strengthening of global commodity prices
How has Newmont's Costs and Margins changed over recent years, and what's the forecast for 2019?
Cost applicable to per ounce of gold sold
All-In Sustaining costs per ounce of gold sold
Cost of sales and AISC per gold ounce increased 2% in 2018 primarily due to lower volume sold, higher stockpile and higher oil prices.
We expect cost per ounce to reduce by 3.2% in 2019 on the back of higher production volume and better grades
Cost applicable to per pound of copper sold
All-In Sustaining costs per pound of copper sold
Increase in cost of sales and AISC per pound of copper ranged between 12% to 15% due to lower volume and higher co-product allocation of costs to copper.
We expect cost to reduce by 5.3% in 2019, driven by higher production
Effective Tax rate
Net Income Margin
The effective tax rate saw a sharp reduction in 2018, following the implementation of the Tax Cuts and Jobs Act in the US, which led to a significant rise in margins. However, since the company pays taxes in various jurisdictions, its tax rate is always higher than the statutory tax rate in the US.
Re-measurement and restructuring due to the implementation of the act led to a very high effective tax rate in 2017.
We expect the metric to remain around the current level of about 50%, thus supporting higher margins