Newmont Mining Corp. Reports 35% Jump in Quarterly Profit

Newmont Mining Corp., one of the world's top gold producers, saw its second-quarter profit soar 35% as higher gold prices offset a decline in base metal revenue and volume. The company's earnings from continuing operations exceeded analysts' estimates, reaching $84 million, or 19 cents a share. Revenue grew 2% to $1.01 billion, driven by a 4% increase in gold sales.

Key Takeaways:

• Newmont's second-quarter profit jumped 35% to $50 million, or 11 cents a share, compared to $37 million, or 8 cents a share, in the same period last year.
• Earnings from continuing operations totaled $84 million, or 19 cents a share, exceeding analysts' estimates of 17 cents a share.
• Revenue grew 2% to $1.01 billion from $982 million in the second quarter of 2004.
• Gold sales rose 4% to $842 million, while base metal sales decreased 4% to $164 million.
• The company sold approximately 2 million ounces of gold at an average realized price of $421 per ounce, up from 2.1 million ounces sold last year at an average price of $395 per ounce.
• Newmont predicts 2005 gold sales of 8.4 million to 8.6 million ounces and copper sales of 635 million pounds.

Statistics:

• Second-quarter profit: $50 million, or 11 cents a share (35% increase)
• Earnings from continuing operations: $84 million, or 19 cents a share
• Revenue growth: 2% to $1.01 billion
• Gold sales: $842 million (4% increase)
• Base metal sales: $164 million (4% decrease)
• Gold production: 2 million ounces average realized price of $421 per ounce
• Forecasted 2005 gold sales: 8.4 million to 8.6 million ounces
• Forecasted 2005 copper sales: 635 million pounds

Sources:

• Dow Jones Commodities News via Comtex (07-27-2005)
• Thomson First Call survey
• Comtex SmarTrend(SM) Alert (07-15-2005)
• Dow Jones & Company, Inc. (Copyright 2005)
• Comtex News Network, Inc. (Copyright 2005)