This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Newmont Announces Second Quarter 2013 Results

Newmont Mining Corporation (NYSE: NEM) (“Newmont” or the “Company”) today reported quarterly revenues of $2.0 billion and cash flow from continuing operations of $293 million, or $0.59 per basic share. A non-cash impairment charge, primarily related to the impact of lower gold and copper prices on long-term assets at Boddington and Tanami, as well as stockpiles and ore on leach pads, resulted in a net loss attributable to stockholders of $2.0 billion, or $4.06 per basic share.

“I am pleased with our progress to improve our costs and operating efficiencies across our portfolio, which has resulted in a $362 million reduction in year-to-date spending compared to the first half of 2012,” said Gary Goldberg, President and Chief Executive Officer. “We are also on track to reduce our corporate work force by more than one-third, with similar efforts underway at our regional offices. At our operations, we performed in line with our plans. Excluding non-cash asset write-downs, we remain on track with our original outlook for gold and copper production, costs applicable to sales and all-in sustaining costs,” Goldberg added.

Second Quarter Financial Highlights 2

  • Revenues of $2.0 billion;
  • Attributable gold and copper production of 1.167 million ounces and 34 million pounds, down 1% and 11%, respectively, from the prior year quarter; attributable gold and copper sales of 1.213 million ounces and 37 million pounds, up 6% and 23%, respectively, from the prior year quarter;
  • Consolidated spending 1 down $362 million year-to-date compared to the first half of 2012;
  • All-in sustaining costs 3 of $1,136 per ounce, excluding stockpile write-downs or $1,548 per ounce, reflecting stockpile write-downs;
  • Gold and copper costs applicable to sales (“CAS”) 4 of $724 per ounce and $2.53 per pound, excluding stockpile write-downs, or $885 per ounce and $8.53 per pound reflecting stockpile write-downs;
  • Average realized gold and copper prices of $1,386 per ounce and $2.66 per pound, respectively;
  • Cash flow from continuing operations of $293 million or $732 million year-to-date;
  • Dividends paid of $174 million;
  • Maintaining full year 2013 attributable gold and copper production outlook 5 of 4.8 – 5.1 million ounces and 150 – 170 million pounds, respectively;
  • Maintaining annual gold CAS outlook of $675 to $750 per ounce, excluding stockpile write-downs, or adjusted to $750 to $825 per ounce, including stockpile write-downs; and
  • As previously announced, Newmont’s Board of Directors approved a third quarter gold price-linked dividend of $0.25 per share 6 based upon the average London P.M. Gold Fix for the second quarter.

Impairments

As a result of lower gold and copper prices and in accordance with US GAAP, second quarter net income was adjusted by $1.8 billion, net of taxes and minority interest, for impairments and revaluation. Of that amount, $272 million, net of tax and minority interest, is related to impairments of stockpiles and ore on leach pads. The remaining $1.5 billion, net of tax, is related to impairments of property, plant and mine development and other long-term assets at Boddington and Tanami in Australia. These charges do not impact the Company’s cash flow and are considered one-time charges.

1 of 10

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,070.22 -102.46 -0.60%
S&P 500 1,985.41 -8.88 -0.45%
NASDAQ 4,513.89 -13.7990 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs