Newmont’s 1989 income down despite increase in sales

Denver-based Newmont Mining (NYSE) reported unaudited net income of US$123.9 million, or US$1.84 a share, for the year ended Dec. 31, compared with US$174.9 million, or US$2.60 a share, in 1988. Newmont’s earnings include a fourth-quarter after-tax gain of US$63.5 million on the sale of 26% of the company’s stake in Newmont Australia. The 1988 results included an after-tax gain of US$81 million, or US$1.20 a share, from the sale of Dupont shares held by Newmont, as well as net income of US$82.8 million, or US$1.23 a share, from discounted operations.

Consolidated sales in 1989 increased to US$591.1 million from US$394.5 million at the end of 1988.

In the final three months of 1989, Newmont had net income of US$81.6 million, or US$1.21 per share, compared with a restated US$93.8 million, or US$1.39 a share, in the fourth quarter of 1988.

Newmont’s fourth-quarter consolidated sales climbed to US$155.7 million from US$125.9 million in 1988.

Subsidiaries and affiliates, including 90% owned Newmont Gold (NYSE), contributed US$64.9 million before tax to Newmont’s income figures, compared with US$59.2 million last year. The unaudited net income in 1989 of Newmont Gold, North America’s largest gold producer, was a record US$118 million, or US$1.13 a share, compared with US$108.1 million or US$1.03 a share in 1988. Annual sales rose to US$559.2 million from US$388.8 million.

Newmont Gold also reported fourth-quarter net income of US$40.2 million, or 38cents a share, up from US$37.2 million or 35cents a share, at the same time in 1988. Fourth-quarter sales went up to US$154.6 million from US$128.6 million last year.

Newmont Mining also holds 49% of Newmont Australia and 54.97% of Peabody Holding Co., the largest coal producer in the U.S.006 Newmont Mining (NYSE)* Year ended Dec. 31 1989 1988 Revenue (000s) 591,141 394,568 Net earnings (000s) 123,947 174,851 Net earnings (per share)1.842.60 *US dollars.003