DOW JONES NEWSWIRES
Newmont Mining Corp. (NEM) swung to a fourth-quarter profit on
fewer write-downs despite slumping margins and a continuing drop in
copper sales.
Mining companies had been struggling as gold prices eased, but
in recent weeks gold has continued its advance back toward $1,000
an ounce, driving mining company stocks up as company officials and
metals strategists forecast more price strength.
The world's second-largest gold miner behind Barrick Gold Corp.
(ABX) reported net income of $10 million, or 2 cents a share,
compared with a year-earlier loss of $289 million, or 63 cents a
share. The latest results included $145 million in write-downs of
marketable securities, while last year included a write-down of
$220 million on exploration goodwill. Excluding items, the latest
quarter's earnings were 26 cents.
Revenue decreased 4.8% to $1.34 billion.
Analysts polled by Thomson Reuters expected earnings of 25 cents
on revenue of $1.42 billion.
Gross margin fell to 41.6% from 50.7% as gold mining costs rose
21%. Gold sales edged up 0.4% to $1.3 billion.
Copper sales slumped 61% as sharply falling prices more than
offset a 17% increase in output.
Newmont, which affirmed its gold-sales and capital-spending
expectations, earlier this month said it raised $1.7 billion from
sales of common stock and senior notes due in 2012. The money will
be used to fund its acquisition of the remaining one-third stake in
the Boddington project in Western Australia that it doesn't
own.
Shares closed Wednesday at $42.76 and haven't traded premarket.
The stock is up 80% in the last three months.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com
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