Newmont ups earnings

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 revenue of US$1.1 billion in the quarter, versus US$126 million gained on revenue 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.

The company also declared a US10 dividend for the quarter, for shareholders of record on Dec. 7.

President Pierre Lassonde is stepping down, as planned, at the end of 2006, but will remain as vice-chairman of the board of directors. Six executive and senior vice-presidents will continue to assist chief executive Wayne Murdy.

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