UPDATE 1-Gold miner Newmont earnings in line, raises output forecast

Wed Jul 22, 2015 5:10pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

(Adds analyst estimates, outlook, other financial and production results)

July 22 (Reuters) - Newmont Mining Corp reported higher second-quarter adjusted earnings on Wednesday, in line with analyst expectations, as lower oil prices and favorable exchange rates offset the impact of weaker metal prices.

Based on this performance, Newmont, the world's No. 2 gold producer, raised its gold production forecast and lowered its cost outlook.

The miner now expects attributable gold production of between 4.7 million and 5.1 million ounces in 2015, up from a prior forecast of 4.55 million to 4.9 million ounces. It sees production rising to between 5.2 million and 5.5 million ounces in 2017.

Consolidated all-in sustaining costs per ounce are now expected to be between $920 and $980 in 2015, down from an earlier forecast of $960 to $1,020, and seen holding relatively steady at between $900 and $1,000 in 2017.

The changes also take into account the recent acquisition of the Cripple Creek & Victor mine, the pending sale of the Waihi mine and the start up of the Long Canyon mine.

Newmont said adjusted net earnings rose to $131 million, or 26 cents a share, in the quarter to end-June from $101 million, or 20 cents a share, in the same period a year ago.

Analysts on an average expected the miner to report earnings of 26 cents per share, according to Thomson Reuters I/B/E/S.

All-in sustaining costs to produce one ounce of gold improved to $909 an ounce from $1,063 in the same quarter a year ago.

Attributable gold production from Newmont's mines in the Americas, Australia, Asia and Africa rose to 1.24 million ounces of gold and 41,000 tonnes of copper in the quarter. That compares with 1.22 million ounces of gold and 20,000 tonnes of copper in the second quarter of 2014. (Reporting by Nicole Mordant in Vancouver; Editing by Diane Craft and Meredith Mazzilli)