Newmont's 2Q Net Rose 32%, Buoyed By Higher Gold Prices
Thursday July 31, 12:44 pm ET
DENVER -- Newmont Mining Corp.'s second-quarter net income jumped 32%, helped by higher gold prices.
The mining company on Thursday reported net income for the period rose to $ 90.8 million, or 22 cents a share, from $69 million, or 17 cents a share, a year earlier.
Analysts expected earnings of 18 cents a share, according to Thomson First Call (News - Websites).
The latest quarter included charges and gains that had the net effect of increasing net by $18.9 million. In the year-earlier quarter, items boosted net by $40.6 million.
Revenue rose 16% to $747.2 million from $643.7 million, as the average realized gold price rose 12% to $353 an ounce from $314 an ounce a year earlier. Equity gold sales slipped to 1.8 million ounces from 1.9 million ounces last year, reflecting the company's sale of an interest in the TVX Newmont Americas joint venture in January and the exchange of its 45.7% interest in Echo Bay for a 13.8% interest in Kinross Gold.
Newmont raised its 2003 equity gold sales projection to 7.2 million to 7.4 million ounces, from an earlier outlook of between 7.1 million and 7.3 million ounces. The company now expects total cash costs of $198 to $208 an ounce, up from earlier estimates of $195 to $200 an ounce.
-Nora Devine; Dow Jones Newswires; 201-938-5400
(Amy Reilly contributed to this report.)
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