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Thanks to MiningNews.net

Cash rolls in for Newmont

Sarah Belfield


Thursday, April 29, 2004
NEWMONT Mining has recorded net income of US$86.7 million for the March quarter after selling 1.81 million ounces, with a higher gold price and solid operating performance seeing net cash up 141% from 12 months ago.

Net cash totalled US$328.2 million for the quarter, with the 141% increase achieved despite a mere 2% increase in sold ounces. Total revenues increased from US$748 million to US$1.1 billion.

The US$86.7 million bottom line was down from the $117.3 million achieved in the previous corresponding quarter, primarily due to a $47.1 million non-cash after-tax charge taken to accommodate a change in accounting principle with the consolidation of Batu Hijau.

Following the strong result, Newmont has increased it quarterly dividend by 50% to $0.075 per share, payable on June 23 with a record date of June 2.

Operationally, total cash costs averaged US$231/oz, an increase on the US$201 per equity ounce for the March quarter last year. However the average realised gold-price was up significantly over the same period, from US$351/oz to US$413/oz.

Newmont's Australian operations delivered 521,300oz at total cash costs of US$251/oz.

Total cash costs at Kalgoorlie increased 21% to US$300/oz, due to the appreciation of the Australian dollar and higher mining costs at Mt Charlotte and the Superpit.

Sales at Tanami increased by 74% to 183,100oz, with total cash costs unchanged from last year at US$256/oz. The sales increase resulted from a full quarter of 100% ownership, higher grades and an inventory drawdown.

During the quarter, copper sales at Golden Grove dropped 89% to 2.3 million pounds, largely due to mine-plan sequencing that saw more zinc delivered, with 45.4Mlbs sold, an increase of 82%.