Newmont Mining Corp. (NEM) Monday reported a steeper-than-expected decline in first-quarter profit, due mainly to lower sales of gold and copper. Results were also hurt by lower grade and recovery at Carlin and lower grade at Twin Creeks in Nevada, along with shipping delays that ended with lower concentrate sales.
Newmont Mining shares lost 1.4 percent in after-hours trade on the New York Stock Exchange.
Green Village, Colorado-based Newmont reported quarterly net income to common shares of $315 million or $0.63 per share, compared to $490 million or $0.97 per share last year.
Excluding items, adjusted earnings for the quarter were $354 million or $0.71 per share, compared to $578 million or $1.15 per share a year ago. On average, 18 analysts polled by Thomson Reuters estimated earnings of $0.77 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the first quarter were $2.18 billion, compared to $2.68 billion a year ago. Analysts, on consensus, estimated revenues of $2.27 billion for the quarter.
Attributable gold production for the quarter slid 11 percent from last year to 1.165 million ounces, while copper production rose 9 percent to 38 million pounds.
Attributable gold sales declined 11 percent from a year ago to 1.142 million ounces, and copper sales fell 16 percent to 31 million pounds.
For fiscal year 2013, Newmont slashed its capital expenditure outlook by $100 million and now estimates attributable capexp of $2 billion to $2.2 billion and consolidated capex of $2.3 to $2.5 billion.
The company continues to project 2013 attributable gold and copper production of 4.8 million to 5.1 million ounces and 150 million to 170 million pounds, respectively.
Newmont said it anticipates first production at Akyem in Ghana later this year, and the ramp up Phase 6 ore mining at Batu Hijau in Indonesia late next year, to enhance free cash flow in 2014 and 2015.
Newmont closed Monday's regular trade at $33.97, up 1.49%, on a volume of 5.8 million shares on the NYSE. In after hours, the stock dropped $0.47 or 1.38%.
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