GOLD NEWS

Weak Asian/Pacific mine performance hits Newmont 3Q results

The gold miner reported reductions in both output and net income during the first nine months of this year.

RENO (MINEWEB) - 

Newmont Mining announced Thursday that it expects output to be at the low end of its 2012 outlook for attributable gold and copper production at 5 million to 5.1 million gold ounces and 145 million to 165 million pounds of copper.

The company said it will also be at the higher end of its narrower cost after sales (CAS) outlook range of between $650 to $675 per ounce on a co-product basis due to issues at Tanami, Codding and Waihi.

For the first nine months of the year Newmont reported attributable gold production of 3.726 million ounces, down from 3.867 million ounces for the first nine months of last year. Attributable copper production of 108 million pounds of copper was reported for the first nine months of year, down from the 152 million pounds during the first nine months of 2011.

For the third quarter of the year, Newmont reported attributable gold production of 1.237 million ounces, down from attributable 3Q11 gold production of 1.3 million ounces. Attributable copper production for the third quarter of this year was 35 million pounds, down from 56 million pounds of copper production for the same period of last year.

Strong performances at both Newmont's Nevada complex and Yanacocha in Peru were offset by weaker performance in the company's Asia Pacific region, primarily at Boddington and Tanami in Australia, said Newmont CEO Richard O'Brien.

"We are also seeing clear progress on our commitment to deliver profitable ounces from new projects including our Akyem project in Ghana, which is 65% complete and proceeding on budget and on schedule to begin production in late 2012, and in Nevada where our Emigrant mine commenced production this quarter," O'Brien added.

FINANCIALS

Newmont reported an adjusted net income of $1.3 billion or $2.60 per share for the first nine months of this year, down from adjusted net income of $1.6 billion or $3.17 per share for the first nine months of last year.

Attributable net income of $1.136 billion or $2.29 per share was reported during the first nine months of 2012, down from attributable net income of $1.4 billion or $2.27 per share reporting during the same period of 2011.

For the third-quarter 2012, Newmont reported an adjusted net income of $426 million or 86-cents per share, down from $635 million or $1.29 per share for the same quarter of last year.

Newmont reported attributable net income of $400 million or 81-cents per share for the third-quarter 2012, down 19% from $493 million or $1 per share in the third quarter of 2011. Third quarter results this year were impacted by lower ore tonnes and grade mined at Tatami, slightly lower grade at Ahafo due to mine sequencing, and lower production and higher costs at Batu Hijau.

Newmont is maintaining its 2012 attributable capital expenditure outlook of $2.7 billion to $3 billion, or $3 billion to $3.3 billion on a consolidated basis.