New York, USA — MININGREVIEW.COM — 26 February 2010 – Newmont Mining Corporation “’ the world’s second largest gold producer “’ has revealed that its fourth-quarter profit soared, easily beating Wall Street estimates, as revenue almost doubled on record prices for the precious metal.
But in its latest earnings release published here, the company appeared to back off its previous forecast for a 5 to 10% gold production increase this year, saying only that 2010 production was expected to rise slightly.
“Results were much stronger than expected, but on first impressions 2010 guidance is down slightly,” analyst Heather Douglas of Thomas Weisel Partners wrote in a research note.
Newmont said net earnings had jumped to US$558 million (R4.2 billion), or $1.13 per share, from US$4 million (R30 million), or 1 cent per share, a year earlier. Revenue had risen 90% to US$2.5 billion (R18.75 billion), beating analysts’ estimates of US$2.06 billion (R15.45 billion). Net cash from continuing operations had more than quadrupled to US$1.0 billion (R7.5 billion).
Newmont sold 1.5 million ounces of gold “’ up from 1.3 million ounces a year earlier “’ while the cost of mining dropped 7% to $413 per ounce, the Denver-based company said.
The company added that it expected gold production to increase slightly to between 5.3 and 5.5 million ounces in 2010, primarily as a result of the ramp-up to full production of its Boddington mine in Western Australia. It also expected 2010 gold costs applicable to sales to increase slightly to between US$450 and US$480 per ounce.
“With the completion of construction of Boddington late last year,” said CEO Richard O’Brien, “we now turn our attention to the development of our next generation of projects, including Akyem in Ghana, Conga in Peru, Hope Bay in Canada and our portfolio of growth projects in Nevada.”