Newmont Mining turned in its first quarterly report since its mega-merger with Franco-Nevada Mining and Normandy Mining, and the results augur well for the company’s future. The company, now the world’s largest gold producer and the intellectual standard bearer for non-hedging, posted a second-quarter profit of US$64.8 million, or US16 per share, on gold sales of US$604 million and net cash flow from operations of US$134 million.
Quarterly gold sales totalled 1.85 million equity ounces, at a realized price of US$314 per oz. — up 17% from the year-ago period. Cash costs totalled US$195 per oz. Over the report period, Newmont rose 95 to US$24.95.
The U.S.-listed gold majors were mixed as political risk continued to weigh on the South African miners: AngloGold fell 38 to US$21.88; Gold Fields slipped 16 to US$10.62; Ashanti Goldfields jumped 49 to US$4.70; Harmony Gold recovered 20 to US$11.97; and Compania de Minas Buenaventura rose 24 to US$21.30.
With silver prices stabilizing around US$4.60 per oz. following July’s fall from above US$5, the big U.S. silver stocks found new support levels: Coeur d’Alene Mines rose 18 to US$1.78 and Hecla Mining shot up 57 to US$3.64. Apex Silver Mines fell 39 to US$13.10.
The base metal miners were down across the board as weakness in the world economy continued to depress prices: Alcoa dropped $1.01 to US$24.97; Phelps Dodge plummeted $4.34 to US$30.47; BHP Billiton sank $1.07 to US$9.28; Rio Tinto declined $6.20 to reach US$63.85; and Anglo American crashed $1.48 to US$11.90.
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