Newmont Mining posts surprise loss on lower gold, copper prices

July 26 Fri Jul 26, 2013 2:02am EDT

July 26 (Reuters) - U.S. gold miner Newmont Mining Corp plunged to a second-quarter loss following a non-cash charge of $1.8 billion for lower gold and copper prices and cut its dividend.

The net loss attributable to common shareholders was $2.01 billion, or $4.06 per share, from a net profit of $279 million, or 56 cents per share, a year earlier.

Adjusted to remove one-time items, the loss was $50 million, or 10 cents per share, missing analysts expectations of a profit of 42 cents per share, according to Thomson Reuters I/B/E/S.

Revenue fell 11 percent to $1.99 billion.

Newmont, which pays a quarterly dividend that varies with the price of gold, declared a payout of 25 cents a share compared with 35 cents in the previous quarter.

Gold prices have fallen sharply so far this year, hitting a near 3-year low around $1,180 an ounce in late June and prompting gold producers to slash capital spending and other costs.

Denver-based Newmont said in June that it would reduce its workforce in Colorado by at least 33 percent, in an effort to streamline operations and create more value for shareholders.

FILED UNDER: