NEW YORK (Reuters) - Newmont Mining Corp (NEM.N: Quote, Profile, Research, Stock Buzz), the world's second biggest gold producer, said on Wednesday it expects margin expansion as a result of a higher gold price and its own cost-cutting measures.
Chief Financial Officer Russell Ball also told the Reuters Global Mining Summit he sees no writedowns affecting earnings this year, unlike the fourth quarter when the company reported a loss as a result of a $1.1 billion writedown on exploration.
"I am very comfortable and don't foresee any large writedowns," Ball said. "There isn't ... a lot left that I can see that would get charged to earnings."
Asked how a record gold price hovering around $1,000 per ounce will affect Newmont's earnings, he said: "We'll see significant margin expansion."
Ball also said that the gold industry's output will drop on average 1 to 2 percent annually in the next 10 years.
(For summit blog: summitnotebook.reuters.com/)
(For more information see TAKE A LOOK-Reuters Global Mining Summer ID:nN10455170 )
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