Thursday, July 29, 2004 ASSET value write-offs cut deeply into the second quarter profit of Newmont Mining, the world's biggest gold producer.
Reported earnings fell by 60% in the June quarter, largely because of a write-off in the value of an investment in Kinross Gold, and the value of the Ovacik goldmine in Turkey.
Net income came in at US$37.5 million compared with US$90.8 million in the previous corresponding period.
Reuters said the result on a pre-write off basis was equivalent to US19c a share compared with analyst estimates of US23c a share.
Newmont chief executive, Wayne Murdy, said in a statement that the decline in second quarter earnings was the result of planned mine closures and "divestitures", processing lower grade material, and non-cash impairment charges.
Gold sales in the latest quarter were down 10% to 1.6 million ounces. Production costs rose from US$277 an ounce to US$309/oz.
Murdy said he expects full year sales to exceed 7 million ounces with the best result coming in the fourth quarter.
Reuters resported Newmont shares dropped US55c to $US38.40 in early New York trading.
NEM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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