Third-quarter earnings at Newmont Mining (NEM-N, NMC-T) grew by 57% year-on-year thanks to the rising gold price.
Newmont registered a profit of US$198 million (US44 per share) on revenues of US$1.1 billion in the quarter, versus US$126 million gained on revenues of US$1.1 billion in the third quarter of 2005. For the first nine months of the year, the company is showing a profit of US$568 million, out of revenues of US$3.5 billion; at the quarter-pole in 2005 it was US$260 million in the black having taken in US$3.1 billion.
Declining production from Australian and Indonesian operations, and a low-production year from Yanacocha in Peru, were offset by new production from the Ahafo gold mine in Ghana. The Golden Giant mine near Hemlo, Ont., which closed in 2005, finished remnant production in the quarter.
The expropriation of Newmont’s share of the Zerafshan joint venture in Uzbekistan resulted in a US$101-million writedown of the operation’s carrying value in the quarter.
Newmont announced that its president, Pierre Lassonde, would be retiring at year-end but would stay as vice-chairman and as a consultant. The company also declared a US10 dividend for the quarter, for shareholders of record on Dec. 7.
Be the first to comment on "Newmont earnings up"