Thursday, 28th July 2005 (2878 views)

Newmont Mining has released a 2005 production forecast of 8.4 million ounces of gold at a cost of around $240 (£138) per ounce.

The mining group revealed that its net income for the second quarter of the year was $50 million (£29 million), up 35 per cent from $37 million for the same three months of 2004, attributing the increase to higher gold prices. The company said gold sales rose four per cent to $842 million over the April-June quarter.

Denver-based Newmont stated that a $30 million impairment charge related to the sale of the Golden Grove operation in Western Australia had impacted net income for the quarter and income from continuing operations had been $80 million for the three months to June 30th.

The world's biggest gold producer announced that consolidated capital expenditures for 2005 were expected to fall between $1.1 billion (£631 million) and $1.2 billion.

Wayne Murdy, Newmont chairman and chief executive officer, predicted a stronger performance in the second half of the year.

"We continue to expect stronger operating performance in the second half as we access higher grade ore, increase processing rates at Batu Hijau and Yanacocha and begin production at the Leevile mine in Nevada," he said.

 

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