Newmont 3Q Adjusted Income Down By Penny Per Share
(Kitco News) - Newmont Mining Corp. (NYSE: NEM) Thursday reported a modest decline froma year ago in third-quarter adjusted net income due to lower metals prices andoutput.
The company listedadjusted income of $175 million, or 33 cents per share, compared to $184million, or 34 cents, in the same period a year ago. This beat forecasts centeredaround 19 cents a share, according to news reports.
On a net basis, Newmont listed a loss of $161 million, or 31 cents ashare. This was a turnaround from a profit of $213 million, or 39 cents, in thesame quarter a year ago. The net loss included a charge of 74 cents a share forimpairments and a write-down in North America, as well as several other specialitems, Newmont said.
The company said revenuedecreased 8% to $1.73 billion for the quarter primarily due to lower realizedgold prices and lower production at some sites. The average realized price forgold was $1,201 an ounce, down $75 per ounce from the prior-year quarter. The averagerealized price for copper was $2.50 per pound, a reduction of 56 cents.
Gold production decreased 4%to 1.29 million ounces primarily due to lower mill throughput at Carlin, lowerleach production at CC&V, and lower grades at KCGM, Newmont said. Theseimpacts were partially offset by higher grades at Ahafo, Yanacocha and Tanami.The output was within the company's guidance, Newmont said. All-in sustainingcosts were $927 an ounce, which Newmont said was below its full-year guidance.
Copper production fromPhoenix and Boddington was 12,000 tonnes for the quarter, in line with theprior-year period, Newmont said.
Full-year productionguidance was narrowed to between 4.9 million and 5.2 million ounces for 2018,while AISC guidance was narrowed to between $950 and $990. The company'sforecast for copper was left at between 40,000 and 60,000 tonnes. Officialssaid they anticipate updating their long-term guidance on Dec. 5.
Newmont also announcedthat Tom Palmer has been promotedto president and chief operating officer, effective Nov. 1. He will continue to report directly to GaryGoldberg, chief executive officer, and lead the company's global operations,projects, and health, safety and security teams, Newmont said.
Since May 2016, Palmer has been executive vice president and chiefoperating officer. Since, Newmont has generated more than $2 billion in freecash flow and commissioned two new mines and four expansions ahead ofschedule and within or below budget, the company said.
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