Gold mining giant Newmont Mining Corporation ( NEM ) has declared its preliminary gold and copper production for the second quarter of 2013. The company has also reaffirmed its outlook for 2013.
Newmont's attributable gold production for second-quarter 2013 amounted to 1.167 million ounces compared with 1.182 million ounces registered in second-quarter 2012 and 1.165 million ounces in first-quarter 2013. Attributable copper production for second-quarter 2013 was 34 million pounds compared with 38 million pounds in both second-quarter 2012 and first-quarter 2013.
Attributable gold sales were 1.213 million ounces for second-quarter 2013 compared with 1.140 million ounces in both second-quarter 2012 and in first-quarter 2013. Attributable copper sales were 37 million pounds for second-quarter 2013 compared with 28 million pounds for second-quarter 2012 and 31 million pounds for first-quarter 2013.
Newmont also maintained its outlook for 2013 and anticipates attributable gold and copper production to be roughly 4.8 million to 5.1 million ounces and 150 million to 170 million pounds, respectively.
Newmont's revenues and profit declined by double digits in first-quarter 2013 hurt by lower grade and shipping delays. Adjusted earnings and sales missed the Zacks Consensus Estimates.
Attributable gold production fell due to lower production across North and South America. Weaker gold and copper pricing affected the results. Newmont may continue to face headwinds due to increasing mining and non-mining costs.
Newmont is focused on reviewing the potential opportunities to improve its cash flow and preserve financial flexibility under the dominant volatile metal price environment. It is slated to release its second-quarter 2013 results after the market closes on Jul 25.
Newmont currently carries a Zacks Rank #4 (Sell).
Other companies in the mining industry with favorable Zacks Rank are NovaGold Resources Inc. ( NG ), Pretium Resources Inc. ( PVG ) and Lake Shore Gold Corp. ( LSG ). All of them retain a Zacks Rank #2 (Buy).