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.
ImpairmentsAs 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.