Newmont Mining Corporation
) reported preliminary third quarter 2012 attributable gold and
copper production of 1.24 million ounces and 35 million pounds,
respectively compared with gold and copper production of 1.3
million ounces and 58 million pounds respectively reported in the
third quarter of 2011.
Lower mill availability and recoveries at Boddington, and
lower ore tons and grade mined at Tanami in Australia were the
primary reasons cited by the company for lower production.
Newmont reported attributable gold and copper sales of 1.21
million ounces and 38 million pounds, respectively, for the
quarter. The company also announced that it expects to incur a
$27 million charge related to Hope Bay care and maintenance, and
another charge of $50 million for restructuring severance and
other related costs for the quarter.
Newmont released its second quarter 2012 financial results in
July 2012. The company's second quarter-2012 adjusted earnings of
59 cents a share significantly lagged last year's earnings of 90
cents, and missed the Zacks Consensus Estimate of 94 cents by a
Reported profits plunged 47% to $279 million, or 56 cents per
share, in the quarter, from $523 million or $1.06 per share in
the prior-year quarter. Revenues went down 6% year over year to
$2.2 billion and trailed the Zacks Consensus Estimate of $2.4
Newmont's attributable gold and copper production declined 3%
and 10%, respectively, from last year to 1.18 million ounces and
38 million pounds in the quarter. On a year-over-year basis,
attributable gold and copper sales also dropped 6% and 35%,
respectively, to 1.14 million ounces and 29 million pounds.
Based in Colorado, Newmont is one of the world's largest
producers of gold with several active mines in Nevada, Peru,
Australia/New Zealand, Indonesia and Ghana. It competes with the
AngloGold Ashanti Ltd.
Barrick Gold Corporation
Gold Fields Ltd.
Newmont is well-positioned to gain from the rising price of
gold. But the company's direct mining costs are increasing due to
declining grades, increased royalties and other costs.
The stock retains a Zacks #3 Rank, indicating a short-term (1
to 3 months) Hold rating. We currently have a long-term (more
than 6 months) Underperform recommendation on the shares of
BARRICK GOLD CP (ABX): Free Stock Analysis
ANGLOGOLD LTD (AU): Free Stock Analysis
GOLD FIELDS-ADR (GFI): Free Stock Analysis
NEWMONT MINING (NEM): Free Stock Analysis
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