Of the top 25 mining companies by market value as of May 24, 14 bested their S&P Global Market Intelligence consensus EPS estimates for the first quarter, while three met estimates and seven underperformed.
The review is limited to companies listed on the Australia, London, New York, Johannesburg and Toronto bourses with comparable quarterly data for 2019. As a result, this current iteration excludes a number of large mining companies that report earnings on a biannual basis.
The largest company on the list, Southern Copper Corp., missed its EPS estimate by 7.4%. The company's net income fell 17.5% year over year for the first quarter, as lower average prices for all of its metal products drove down net sales.
In second and third place, respectively, Newmont Goldcorp Corp. and Barrick Gold Corp. both saw net income for the quarter decline year over year yet still managed to beat estimates by 22.2%.
Newmont Goldcorp's first-quarter results are attributed to Newmont Mining Corp., which completed a takeover of Canada-based Goldcorp Inc. in April at a reported transaction value of US$12.5 billion.
For its part, Barrick Gold closed its US$6.01 billion all-share merger with Randgold Resources Ltd. at the start of January. Barrick Gold then launched a hostile but short-lived bid for Newmont Mining in February before both settled in March on a joint venture for core gold mining assets in Nevada.
New York-listed Compass Minerals International Inc. beat its first-quarter EPS estimate by the widest margin of 2,100.0%, even as net income dropped amid increased nonoperating costs related to foreign exchange losses, higher interest expense and reduced sales.
Precious metals producers Pan American Silver Corp. and Kinross Gold Corp. also significantly outdid estimates by 400.0% and 250.0%, respectively, despite lower net income year over year. U.S. Steel Corp., Agnico Eagle Mines Ltd., Cia. de Minas Buenaventura SAA and Turquoise Hill Resources Ltd. also outperformed their respective estimates by 100.0% and to as much as 147.4%.
Aluminum producer Alcoa Corp. led misses against first-quarter EPS estimates with a 76.9% miss, after it swung year over year to a net loss in the first quarter as a result of falling aluminum prices pulling down revenues.
Russian PJSC Novolipetsk Steel is the only London-listed miner to make it to the list. It missed its estimate by 11.1%, as company net profit in the first quarter declined year over year amid increased cost of sales and a strengthening ruble.
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