Newmont Gives 1Q13 Prelim Operational Update - Analyst Blog
April 23 2013 - 7:40AM
Zacks
Gold mining giant Newmont
Mining Corporation (NEM) has declared its preliminary gold
and copper production for the first quarter of 2013. The company
has also reaffirmed its outlook for 2013.
Newmont’s attributable gold production for first-quarter 2013
amounted to 1.165 million ounces compared with 1.307 million ounces
registered in first- quarter 2012 and 1.251 million ounces in
fourth-quarter 2012. Attributable copper production for
first-quarter 2013 was 38 million pounds compared with 35 million
pounds in first-quarter 2012 and fourth-quarter 2012,
respectively.
Production for the first quarter was impacted by lower mill
availability due to persisting cold weather in Nevada and
lower-than-planned ore grades at Twin Creeks and Carlin in
Nevada.
Attributable gold sales were 1.142 million ounces for first-quarter
2013 compared with 1.290 million ounces in first-quarter 2012 and
1.230 million ounces in fourth-quarter 2012. Attributable copper
sales were 31 million pounds for first-quarter 2013 compared with
37 million pounds for first-quarter 2012 and 43 million pounds for
fourth-quarter 2012.
Sales for the first quarter were negatively impacted by shipping
delays reflecting lower concentrate sales for the quarter.
Average realized gold and copper price for the quarter was
approximately $1,631 per ounce and $3.13 per pound, respectively.
Average gold price of the London PM Fix for the first quarter
amounted to $1,632 per ounce.
Newmont, which is among the
prominent gold-mining companies along with Agnico-Eagle
Mines Ltd. (AEM), Goldcorp Inc. (GG) and
Kinross Gold Corporation (KGC), also backed its
outlook for 2013 and anticipates attributable gold and copper
production to be roughly 4.8 million to 5.1 million ounces and 150
million to 170 million pounds, respectively.
Production is anticipated to
increase in the second half of 2013 due to greater mill throughput
in Nevada and the ramp up of production at Akyem in Ghana. However,
adverse weather conditions and shipping delays that affected first
quarter productions and sales are not expected to impact results in
the second half of 2013.
Newmont is focused on reviewing the potential opportunities to
improve its cash flow and preserve financial flexibility under the
dominant volatile metal price environment. It is slated to release
its first-quarter 2013 results after the market closes on Apr
29.
Newmont currently carries a short-term Zacks Rank #3 (Hold).
AGNICO EAGLE (AEM): Free Stock Analysis Report
GOLDCORP INC (GG): Free Stock Analysis Report
KINROSS GOLD (KGC): Free Stock Analysis Report
NEWMONT MINING (NEM): Free Stock Analysis Report
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