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Newmont 3Q Adjusted Income Down By Penny Per Share

Kitco News

(Kitco News) - Newmont Mining Corp. (NYSE: NEM) Thursday reported a modest decline from a year ago in third-quarter adjusted net income due to lower metals prices and output.

The company listed adjusted income of $175 million, or 33 cents per share, compared to $184 million, or 34 cents, in the same period a year ago. This beat forecasts centered around 19 cents a share, according to news reports.

On a net basis, Newmont listed a loss of $161 million, or 31 cents a share. This was a turnaround from a profit of $213 million, or 39 cents, in the same quarter a year ago. The net loss included a charge of 74 cents a share for impairments and a write-down in North America, as well as several other special items, Newmont said.

The company said revenue decreased 8% to $1.73 billion for the quarter primarily due to lower realized gold prices and lower production at some sites. The average realized price for gold was $1,201 an ounce, down $75 per ounce from the prior-year quarter. The average realized 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, lower leach production at CC&V, and lower grades at KCGM, Newmont said. These impacts were partially offset by higher grades at Ahafo, Yanacocha and Tanami. The output was within the company’s guidance, Newmont said. All-in sustaining costs were $927 an ounce, which Newmont said was below its full-year guidance.

Copper production from Phoenix and Boddington was 12,000 tonnes for the quarter, in line with the prior-year period, Newmont said.

Full-year production guidance 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’s forecast for copper was left at between 40,000 and 60,000 tonnes. Officials said they anticipate updating their long-term guidance on Dec. 5.

Newmont also announced that Tom Palmer has been promoted to president and chief operating officer, effective Nov. 1. He will continue to report directly to Gary Goldberg, 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 chief operating officer. Since, Newmont has generated more than $2 billion in free cash flow and commissioned two new mines and four expansions ahead of schedule and within or below budget, the company said.

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