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Newmont profit dips

US-based gold producer Newmont Mining (NYSE:NEM) reported lower September-quarter profit and revenue Thursday as lower gold and copper prices weighed on the bottom line.
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The Denver, Colorado-headquartered miner reported third-quarter adjusted profit of US$175 million or 33c per share, compared with $184 million, or 34c a share a year earlier. This was 13c higher than average analyst forecasts that called for earnings of 20c, on revenue of $1.8 billion.

Revenue fell 8% year-on-year to $1.73 billion, mainly because of lower realised gold prices and lower production.

Newmont reported a net loss of $161 million, or 31c a share, compared with profit of $213 million, or 39c a share a year earlier.

The major booked impairment charges totalling $366 million because of a decision not to proceed with certain exploration projects and because of a new mine plan at its Emigrant openpit operation, in Nevada, which dramatically shortened its mine life.

Gold output fell 4% over the year-earlier period to 1.29 million ounces, mainly owing to lower mill throughput at Carlin, lower leach production at Cripple Creek & Victor, and lower grades at KCGM in Western Australia.

All-in sustaining costs also fell 1% in the period to $691.

Copper output from Phoenix and Boddington were flat year-over-year at 12,000 metric tonnes, but copper AISC increased 13% to $1.87 per pound owing to a higher co-product allocation of costs to copper, the company said.

"Newmont delivered $636 million in adjusted EBITDA and $154 million in free cash flow in the third quarter on the back of ongoing productivity improvements across the portfolio and higher grades in Africa and South America," CEO Gary Goldberg said.

The miner narrowed its 2018 gold production forecast to between 4.9-5.2Moz, from 4.9-5.4Moz previously.

It now sees improved all-in sustaining costs at between $950-$990/oz, from $965-$1,025/oz previously.