Newmont Mining Gains From Higher Gold Prices

The company's second-quarter earnings and sales rise from a year ago.
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Newmont Mining's

(NEM) - Get Report

second-quarter results got a boost from an increase in gold prices, which also led the company to raise its 2003 sales outlook on Thursday.

The Denver-based company earned $90.8 million, or 22 cents a share, including items totaling $18.9 million. This compares with a profit of $67.1 million, or 17 cents a share, in the previous-year quarter.

Analysts were expecting 18 cents a share. Shares of Newmont were climbing 1.1% at $35.83 in recent

New York Stock Exchange


Total sales reached $747.2 million, up from last year's $643.7 million. The average gold price during the quarter was $353 an ounce, up 12% from last year.

In the quarter, the company sold 1.82 million equity ounces of gold, compared with 1.86 million equity ounces last year. Newmont now expects equity gold sales to be 7.2 million to 7.4 million ounces in 2003, up from its previous expectation of 7.1 million to 7.3 million.

Additionally, total cash costs are projected to increase to $198 and $208 an ounce from between $195 and $200 an ounce.