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Newmont Mining profit drops as Indonesia output plunges
(Reuters) - Newmont Mining Corp (NEM.N), the world's second-largest gold producer, reported a 26 percent drop in quarterly profit as production at its giant Indonesian copper and gold mine plummeted and costs rose.
Attributable gold production at the Batu Hijau mine on Sumbawa island plunged to 7,000 ounces in the third quarter from 65,000 ounces a year earlier.
Newmont said last month it planned to lay off 100 people from a workforce of 4,000 at the mine to reduce operating costs at a time of low output.
Total copper production fell 38 percent in the quarter ended September 30, while attributable gold production dropped 5 percent to 1.24 million ounces.
Lower ore grades at its Tanami mine in Australia and the Ahafo mine in Africa also weighed on production, Newmont said.
Net income attributable to Newmont stockholders fell to $367 million, or 74 cents per share, from $493 million, or 98 cents per share, a year earlier.
Excluding one-time items, the company earned 86 cents a share. Analysts on average had expected a profit of 91 cents per share, according to Thomson Reuters I/B/E/S.
Revenue fell 10 percent to $2.48 billion.
Shares of the Denver-based company were down 2 percent after the bell. They closed at $53.22 on the New York Stock Exchange on Thursday.
(Reporting By Garima Goel in Bangalore; Editing by Maju Samuel)
(This story was corrected to fix production figures at the Indonesian mine in paragraph 2) ݍ
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