) saw its shares slip roughly 3% after it snipped its copper
production outlook for 2013. The gold giant now sees copper
production between 135 and 145 million pounds for the full year,
down from 150 and 170 million pounds expected earlier. The
Colorado-based company's shares eventually closed at $25.62 in
the trading session following the announcement, shedding around
BARRICK GOLD CP (ABX): Free Stock Analysis
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NEWMONT MINING (NEM): Free Stock Analysis
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The reduced copper production view is attributable to
lower-than-expected mill throughput at the Boddington mine in in
Australia and lower-than-expected ore grade at the Batu Hijau
mine in Indonesia.
Newmont, however, backed its attributable gold production outlook
for the full year, which is still expected in the band of 4.8 to
5.1 million ounces. The company noted that higher mill throughput
in Nevada and the start of commercial production from the Akyem
mine in Ghana in the fourth quarter will benefit gold production
for the full year.
Newmont also reported preliminary attributable gold and copper
production for third-quarter 2013 of 1.283 million ounces and 34
million pounds, respectively. Preliminary attributable gold and
copper sales for the quarter were 1.263 million ounces and 35
million pounds, respectively.
Production in the quarter benefited from higher mill throughput
in Nevada as well as increased grades and mining productivity
resulting from efficiency improvements at the Tanami mine in
Newmont is planning to divest its Midas operation in Nevada,
which it acquired through its merger with Normandy in 2002, to
private equity investment firm Waterton Global Resource
Management, Inc. The move reflects the company's strategy to
focus more on its core businesses.
Moreover, Newmont is reportedly planning to lay off 56 employees
in Nevada amid increasing costs. The move represents a part of
the company's efforts to remain competitive in the current
challenging business environment. The employees affected by the
layoff will be granted severance packages and will also be
provided access to services which will aid other job placement.
Newmont is also reportedly seeking acquisitions to add low-cost
gold or copper output. Its CEO Gary Goldberg, at the Denver Gold
Forum last month, said that the company will look for mines
having longer life and lower costs. Moreover, the company is
considering a joint venture with
) in Nevada to explore means to cut costs.
Newmont, which currently retains a Zacks Rank #3 (Hold), will
release its third quarter results after the closing gong on Oct
Other gold miners worth considering include
Lake Shore Gold Corp.
Gold Fields Ltd.
) with both holding a Zacks Rank #2 (Buy).