re: up almost 2 percent in usa
Excellent quarterly - improved reserves, mine construction on track, excellent gold prices. Just need the output to rise and we are in business - 9 mil oz in 2008 will put a smile on Pierres face.
"Newmont Mining Corporation (NEM) today announced a 57% year-on-year increase in net income for the third fiscal quarter of US$198 million (A$256.13 million). The gold miner said it expected equity gold sales for the 2006 financial year of between 5.6 and 5.8 million ounces at costs applicable to sales of between US$290 and US$310 per ounce.
The company also said it continued to expect equity copper sales of between 215 and 230 million pounds at costs applicable to sales of between US$0.65 and US$0.75 per pound.
Newmont said its net income for the nine months ended 30 September, 2006 of US$568 million compared with US$260 million for the first nine months of 2005.
However, consolidated gold sales for the third quarter stood at 1.7 million ounces, compared to 2.1 million ounces in the same quarter in the previous year.
But the average realised gold price for the quarter under review totalled US$615, against US$435 in the comparable quarter in 2005.
The global gold miner said costs applicable to sales in the quarter reached US$318 per ounce, up from US$236 per ounce in the same quarter last year.
In Australia and New Zealand, the company said it sold 6% fewer ounces of gold in the third quarter of 2006 compared to 2005.
Construction of the Boddington project in Western Australia was on schedule and approximately 11% complete, with start-up expected in late 2008 or early 2009, the company added.
In a press statement, Newmont chairman and chief executive officer Wayne Murdy said the company’s third quarter results reflected continued earnings growth and the company’s leverage to the gold price.
“Year-to-date earnings grew over 100% from the prior year, while gold prices rose approximately 40% for the same period,” Mr Murdy said.
“We are maintaining our production and cost outlook for the year, as our Leeville and Phoenix projects in Nevada near commercial production and our Ahafo mine in Ghana continues to ramp up.
“These new mines, as well as our expectation for a fifth straight year of reserve growth net of depletion, will form a solid base from which to grow our business,” he concluded.
Newmont’s directors also declared a regular quarterly dividend of US10c per share, payable December 28, 2006 to holders of record at the close of business on December 7, 2006.
At 1016 AEST, shares in Newmont Mining were 7c higher at $5.97.
NEM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
