Newmont earnings crash

Newmont Mining last week narrowed its gold guidance from 5 million to 5.2 million ounces to a range of 5 million to 5.1 million ounces this year, due to lower tons mined at Tanami.

Attributable 2012 copper production is being lowered from prior guidance of 150 million to 170 million pounds to a new range from 145 million to 165 million pounds.

Attributable gold and copper production for the second-quarter 2012 was 1.18 million ounces and 38 million pounds, down 3% and 10%, respectively from the 1.22 million ounces and 42 million pounds reported during the second quarter of 2011.

For the first half of this year, Newmont reported attributable gold production of 2.49 million ounces, down from 2.56 million attributable ounces reported during the same period of last year. Attributable copper output was reported at 73 million pounds during the first six months of this year, down from 96 million pounds during the first half of 2011.

"As expected, our second quarter gold production was impacted by annual planned mill maintenance in Nevada and lower gold and copper production from Batu Hijau in Indonesia, as we continue with the planned stripping in Phase 6," said Newmont CEO Richard O'Brien.

Financials

Newmont reported adjusted net income of $294 million or 59-cents per share for the second quarter, down from $445 million or 90-cents per share for the second-quarter 2011.

Net income for the second quarter was $279 million, down 28% from $387 million in net income for the same period of last year.

For the first half of this year, Newmont reported an adjusted net income of $872 million or $1.76 per share, down from the adjusted net income of $958 million or $1.94 per share reported during the first half of 2011.

Net income for the first six months of this year was $769 million, down from $901 million reported during the same period of last year.

"Our capital expenditures are expected to be approximately $300 million lower than originally planned for the year, largely as a result of our slower development timetable at Conga in Peru," said O'Brien. ‘We also expect our advanced projects, exploration and G&A expenditures to collectively be approximately $100 million power this year."

Newmont is revising its 2012 attributable capex outlook from $3 billion to $3.3 billion to a range of $2.7 million to $3 billion. The revision is due primarily to the deferral of the development of the Conga project.

The board of directors approved a third quarter price-linked dividend payable of 35-cents per share.

Article published courtesy of Mineweb. For more news on the global mining industry from Mineweb, click here.

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