Newmont's Earnings Double, Topping Estimates

The mining company benefited from surging gold prices.
By Meredith Derby ,

Newmont Mining

(NEM) - Get Report

posted a huge increase in fourth-quarter earnings Wednesday, helped by the continued rise in gold prices. Results surpassed the Wall Street analyst consensus estimate, excluding items.

The company earned $153 million, or 36 cents a share, in the three months ended Dec. 31, compared with $75.1 million, or 19 cents a share, a year ago. The results included certain charges which added $14 million, or 3 cents a share, to earnings.

Excluding items, the company would have earned 32 cents a share; analysts had been expecting 31 cents a share.

Total revenue in the quarter was $821.4 million, up 2.8% from $798.7 million in the prior-year quarter.

The company said it sold 1.715 million equity ounces of gold, which was 23% lower than the prior year quarter mostly due to lower sales in Nevada and Australia. However, the average realized gold price in the quarter was $394 per ounce, a 21% increase over the prior year quarter.

In full-year 2003, Newmont earned $475.7 million, or $1.16 a share, from $154.3 million, or 42 cents a share, in the year-earlier.

Looking ahead, the Denver-based company expects 2004 equity gold sales of 7 million to 7.2 million ounces at total cash costs of between $220 and $230 per ounce.

Newmont's stock rose 67 cents, or 1.7%, to $42.17 in

New York Stock Exchange

trading.

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