Newmont Mining 1Q Profit Helped By Higher Gold Prices
(Kitco News) - Newmont Mining Corp. (NYSE: NEM) Thursday reported arise in its first-quarter profit as the price of gold climbed, althoughproduction eased from the same quarter a year ago.
Netincome attributable to shareholders was listed at $192 million, or 36 cents pershare, compared to $47 million, or 9 cents, in the same quarter a year ago.
Thecompany put its adjusted net income at $185 million, or35 cents, compared to $136 million, or 26 cents, in theprior-year quarter. The result was ahead of market expectations for around 33cents per share, according to news reports.
Newmont said revenue rose 8%to $1.8 billion largely due to higher gold prices. The average realizedprice for gold was $1,326, an improvement of $107 per ounce over the prior-year quarter, while theaverage realized price for copper rose 20 cents to $2.88 per pound.
Gold production decreased2% to 1.21 million ounces due to lower leach activity at Yanacocha, lower gradeand scheduled maintenance at Boddington, and lower grade and reduced recoveryat CC&V that is related to stockpiling of concentrate for shipment to Nevada, Newmont said. The declines were partially offset byimproved production from Merian, Tanami, Carlin andAhafo. Copper production fell 8% to 12,000 tonnes.
Gold all-in sustaining costsrose 8% to $973 per ounce for the quarter on higher cashcosts and increased advanced projects and exploration expense, although thiswas in line with company expectations, Newmont said.
“Costs and productionremained in line with guidance, and our next generation of profitable mines -Ahafo North, Yanacocha Sulfides and Long Canyon Phase 2 - advanced on scheduleto the next stage of development study,” said Gary J. Goldberg,president and chief executive officer.
The company keptgold-production guidance at between 4.9 million and 5.4 million ounces for 2018and 2019. Longer-term production is expected to remain stable at between 4.6 millionand 5.1 million ounces per year through 2022, excluding development projectswhich have yet to be approved, Newmont said.
Newmont, which earlier thisweek announced a dividend of 14 cents per share, reported that the company endedthe first quarter with net debt under $1 billion. Newmont also said it had $3.1billion in cash.
By Allen SykoraFor Kitco News
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