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UPDATE 1-Newmont raises 2014 gold production outlook
July 30, 2014 / 12:35 AM / 3 years ago

UPDATE 1-Newmont raises 2014 gold production outlook

July 29 (Reuters) - Newmont Mining Corp reported a marginal rise in second-quarter earnings on Tuesday due to an increase in gold and copper production during the quarter.

The biggest U.S.-based gold miner said adjusted net income rose to $101 million, or 20 cents per share, in the quarter, from a loss of $90 million, or 18 cents per share, in the same period a year ago.

Analysts expected Colorado-based Newmont to reported adjusted earnings of 19.4 cents a share, according to Thomson Reuters I/B/E/S.

Newmont raised gold production forecast by 2 percent to 4.7 million to 5 million ounces for 2014. It also expects to produce between 90,000 and 100,000 tonnes of copper in 2014.

The company, which halted production at its Batu Hijau copper mine in Indonesia last month and has not been able to export for six months due to a dispute with the government, said “timing and outcome of a resolution in Indonesia is difficult to predict.”

Newmont said last week it is negotiating an agreement to restart exports, but an Indonesian official denied any talks had taken place.

“We continue to work with the Indonesian government to find a fair solution that allows us to resume normal operations as quickly as possible,” Gary Goldberg, Newmont’s president and chief executive officer said in a statement.

The company, which also has mines in North and South America and Asia, produced 1.2 million ounces of gold in the second quarter, up 5 percent from same period in 2013. It produced 20,200 tonnes of copper against 19,400 tonnes a year ago.

Earlier on Tuesday, it said it planned to invest around $1 billion building a gold mine in Suriname.

All-in sustaining costs for gold were $1,063 an ounce in the quarter, down from $1,283 per ounce in the same quarter a year ago. Newmont is one of the higher-cost North American gold producers.

Realized gold prices fell to $1,283 an ounce in the quarter from $1,386 per ounce in the second quarter of 2013.

U.S. listed Shares of the Denver, Colorado-based gold and copper miner rose about 1 percent after market. (Reporting by Nicole Mordant in Vancouver and Shashwat Pradhan in Bangalore; Editing by Lisa Shumaker and Eric Walsh)

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