Newmont Goldcorp Corp. (NYSE: NEM – $31.21) gave investors a last look at Newmont Mining’s books before its merger with Goldcorp. The pre-merged company’s first-quarter profit fell 55% from a year earlier as the company recorded higher expenses and weaker sales. Net income fell to $87 million down from $192 million. Excluding special items like costs from the Goldcorp deal and accounting adjustments, profit was $0.33 a share, down from $0.35 a year earlier, but six cents ahead of Wall Street views. Sales fell to $1.8 billion from $1.82 billion a year earlier, and about $300 million shy of analysts estimates. Gold ounces sold were flat from a year earlier while metric tons of copper sold fell 17%. Average realized gold prices were down 2% to $1,300 an ounce, while copper prices were little changed at $2.89 a pound. Newmont closed its purchase of Goldcorp earlier this month after reaching a deal to buy the miner in January. In March, Newmont reached a deal with Barrick Gold Corp. to squeeze billions of dollars of costs from their Nevada operations. Newmont will own a roughly 38.5% interest in the venture.
NEM shares, yielding 1.7%, are a decent addition to an aggressive account for diversification purposes and a small allocation can be maintained for now.