Newmont Mining more than triples revenue

Gold miner Newmont Mining Corp. said Thursday its second-quarter income jumped to $161 million, or 36 cents per share, on revenue of $1.31 billion.

That compares to income of $50 million, or 11 cents per share, on revenue of $997 million in the second quarter of 2005.

Newmont (NYSE: NEM) is based in Denver.

Gold sales jumped to $1.1 billion during the quarter, up from $833 million during the year-ago quarter. Newmont said copper sales jumped to $202 million, up from $164 million in the second quarter of 2005.

Newmont said consolidated gold sales were 1.9 million ounces — 1.4 million equity ounces — at an average realized price of $605 per ounce.

Gold prices have surged 40 percent to more than $600 per ounce during the first five months of the year.

Analysts had expected results of 47 cents per share and revenue of $1.37 billion.

The company said it expects to sell about 5.9 million to 6.2 million equity ounces of gold this year at a production cost, applicable to sales, of $290 to $310 per ounce. It also said it expects to sell between 225 million and 235 million equity pounds of copper at costs, applicable to sales, of 65 cents to 70 cents per pound.

“During the second quarter and for the first half of the year, we generated substantial earnings growth and gold price leverage for our shareholders,” Chairman and CEO Wayne Murdy said in a news release.

Murdy also said the company has sold its Black Gold oil sands property in Alberta, Canada, for about $280 million.

Published July 27, 2006 by The Denver Business Journal