US markets post slight gain, Feb. 18-22: Newmont, Rio Tinto

The Dow Jones Industrial Average rose 0.57% to 26,031.81, while the S&P 500 Index increased 0.62% to 2,792.67. Spot gold finished the week at US$1,337.80 per oz., up US$16.40 per oz., or 1.24%.

Newmont Mining reported net income from continuing operations of US$280 million, or US53¢ per diluted share, and earnings before interest, taxes, depreciation and amortization of US$2.6 billion in 2018. Consolidated cash flow from continuing operations totalled US$1.8 billion, and free cash flow, US$805 million. Attributable gold production for the year reached 5.1 million oz., in line with the company’s guidance, at costs applicable to sales of US$708 per oz., and all-in sustaining costs (AISCs) of US$909 per oz. gold. Newmont ended the year with US$3.4 billion in cash and net debt of US$0.9 billion. For 2019, the company expects attributable production of 5.2 million oz. at costs applicable to sales of US$710 per oz., and AISCs of US$935 per ounce. “This performance gave us the means to complex expansions in the U.S. and Africa, advance projects and exploration on four continents, and pursue an agreement to create the world’s leading gold business, as measured by assets, people, prospects and value,” Newmont’s CEO, Gary Goldberg, said in a news release. The company reported gold reserves at year-end of 65.4 million attributable ounces. Newmont’s shares rose US$3.24 to US$36.48 apiece.

Rio Tinto released details on all of its tailings facilities. The company reported it has 100 tailings facilities across 32 sites, and of the 100, 21 are upstream construction facilities. It has another 36 tailings facilities that are closed or under rehabilitation. Rio Tinto said all of the facilities it manages are subject to three levels of governance and assurance, and noted that, whether inactive or active, they have an external engineer of record or design engineer. “I would like to acknowledge the recent tragedy at Minas Gerais in Brazil, and our thoughts are with all those impacted by this truly awful event,” Jean-Sébastien Jacques, Rio’s CEO, stated, referring to the tailings dam disaster last month at Vale’s iron ore mine in the state. “Rio Tinto is again reviewing its global standard, and, in particular, assessing how we can further strengthen the existing external audit of facilities.”