Newmont Earnings Dip 26% in Q3

By @ibtimesau on

Third quarter earnings of Newmont Mining, the world's second largest gold miner, fell 26 per cent as operating costs escalated. A production decline at its Indonesian and Australian/Pacific mines also contributed to the drop.

Its big Batu Hijau copper and gold mine on Sumbawa island in Indonesia, in the quarter ended September 30, gave off an 89 per cent fall in gold production. Copper production likewise plummeted as much as 54 per cent due to lower-grade ore.

Newmont said that gold generated at Batu Hijau dropped to 7,000 ounces in the quarter compared from 65,000 a year ago, whereas copper, to 19 million pounds from 41 million.

Lower production and higher waste mining costs led costs attached to sales to jack up more than double by 134 per cent an ounce of gold and 164 per cent per pound of copper. With the waste removal as its Phase 6 still ongoing, waste tons mined increased by 57 per cent versus a year ago.

Gold production from the Australia/New Zealand region likewise fell 14 per cent from a year ago primarily due to a delay in open-pit ore production at Waihi, lower underground mining rates at Tanami and lower grades at Jundee and Kalgoorlie.

Profit dropped to $367 million or 74 cents per share, from $493 million, or 98 cents per share the previous year.

Still, Newmont is maintaining its 2012 attributable capital expenditure outlook of $2.7 to $3.0 billion, or $3.0 to $3.3 billion on a consolidated basis.

Join the Discussion