Newmont 3Q Gold Output Down 6%, Faces $77M Charges

Global gold miner Newmont Mining Corporation on Wednesday reported its third quarter attributable gold production had slumped by 6 per cent on lower mill availability and recoveries as well as lower ore tons and grades.

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Newmont Mining Corporation (NYSE: NEM), based in Denver, Colorado, USA, is among the 3 largest producers of gold in the world. It has active mines in Nevada, Indonesia, Australia, New Zealand, Ghana, and Peru. Some smaller operations include Bolivia, Mexico, and Canada. Holdings include Battle Mountain Gold, Normandy Mining, and Franco-Nevada Corp. Newmont also has many joint venture relationships. Newmont can produce approximately 6 million equity ounces of gold annually and holds reserves of about 100 million ounces. Production in the Americas accounts for about 70% of the company's equity ounces, but even so, Newmont is the largest gold mining company in Australia. Newmont employs approximately 15,000 people worldwide. Other metals that the company mines include copper and silver.

Total gold churned for the period in review reached 1.24 million ounces, a decline of 5.3 per cent from 1.31 million ounces a year ago.

Its attributable copper production, meanwhile, was 35 million pounds.

Preliminary attributable sales of its gold and copper sales hit 1.21 million ounces and 38 million pounds, respectively, at average realized prices of approximately $1,659 per ounce of gold and $3.54 per pound of copper. The London PM Fix average gold price for the quarter was $1,652 per ounce.

Moreover, Newmont likewise announced it is expecting a $27 million charge for the care and maintenance works applied on its care and maintenance, along with a $50 million charge for restructuring, severance, and related costs during the quarter.

Newmont's year-to-date 2012 attributable total gold and copper production had been reported to have reached 3,746,000 gold ounces and 108 million pounds of copper.

Newmont will report its third quarter 2012 financial results on Thursday, November 1^st, 2012, after market close.

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Newmont Mining Corporation (NYSE: NEM), based in Denver, Colorado, USA, is among the 3 largest producers of gold in the world. It has active mines in Nevada, Indonesia, Australia, New Zealand, Ghana, and Peru. Some smaller operations include Bolivia, Mexico, and Canada. Holdings include Battle Mountain Gold, Normandy Mining, and Franco-Nevada Corp. Newmont also has many joint venture relationships. Newmont can produce approximately 6 million equity ounces of gold annually and holds reserves of about 100 million ounces. Production in the Americas accounts for about 70% of the company's equity ounces, but even so, Newmont is the largest gold mining company in Australia. Newmont employs approximately 15,000 people worldwide. Other metals that the company mines include copper and silver.