Newmont Mining Corporation, one of the world’s largest producers of gold, has announced its results for the second quarter of 2012.
Attributable net income from continuing operations of $279 million, or $0.56 per share, was down 47 percent from $523 million, or $1.06 per share in the second quarter of 2011. Adjusted net income was $294 million, or $0.59 per share, compared with $445 million, or $0.90 per share, for the prior year quarter.
"Globally, our portfolio continues to perform in line with our budget,” said Richard O'Brien, chief executive officer.
“As expected, our second quarter gold production was impacted by annual planned mill maintenance in Nevada and lower gold and copper production from Batu Hijau in Indonesia, as we continue with the planned stripping of Phase 6.
"Our capital expenditures are expected to be approximately$300 million lower than originally planned for the year, largely as a result of our slower development timetable at Conga in Peru. We also expect our advanced projects, exploration and G&A expenditures to collectively be approximately $100 million lower this year. As we continue to optimize and refine our plans, we expect to deliver further efficiencies and cost savings for 2013 and beyond," he added.
Newmont is narrowing its previously announced 2012 outlook for attributable gold production to 5.0 to 5.1 million ounces (from 5.0 to 5.2 million ounces), and narrowing its outlook on attributable copper production to 145 to 165 million pounds (from 150 to 170 million pounds).
Attributable gold production in Nevada was 378,000 ounces at costs applicable to sales (CAS) of $718 per ounce during the second quarter. Gold production increased 6 percent from the prior year quarter due to higher throughput at Mill 6, partially offset by lower grade at Midas and Phoenix.
In Mexico, attributable gold production at La Herradura in Mexico was 59,000 ounces at CAS of $569 per ounce during the second quarter. Gold production increased 11 percent from the prior year quarter due to higher leach placement as Noche Buena commenced production during the first quarter of 2012.
At Yanacocha in Peru Q2 attributable gold production was 200,000 ounces at CAS of $466 per ounce. Gold production increased 14 percent from the prior year quarter due to higher mill grade and recovery, partially offset by lower leach placement. CAS per ounce decreased 14 percent from the prior year quarter due to higher production and lower mining costs.
At the Boddington mine in Australia results were similar, with gold ounces down 10 percent to 180,000 ounces at CAS of $947 per ounce due to lower mill grade and recovery, and at Ahafo in Ghana production also decreased 10 percent to 132,000 ounces.
