* Q1 EPS $0.63 vs $0.97 year earlier
* Sales fall to $2.18 billion from $2.68 billion
* Costs rise; nudges capital spending forecast lower
April 29 Newmont Mining Corp, the
largest U.S.-based gold miner, reported a sharper-than-expected
drop in first-quarter profit on Monday, as gold and copper
shipments fell more than 10 percent and realized prices for the
Consolidated all-in costs rose 7 percent to $1,086 an ounce
in the quarter, mainly due to lower gold and copper production,
and the company said it still expects the metric to come in
between $1,100 and $1,200 an ounce in 2013.
Newmont also cut its planned capital spending by $100
million, to between $2.0 billion and $2.2 billion for 2013.
Under the leadership of its new chief executive, Gary
Goldberg, Newmont has pledged to reduce production costs and
proceed with only the most promising opportunities in its
portfolio. It is a vow many gold miners have made in recent
quarters, as rising costs cut into their profits.
The miners are facing lower prices as well - spot gold
slipped into a bear market earlier this month, dropping below
$1,400 per ounce for the first time in two years. Spot gold
was at $1,476.20 an ounce on Monday.
Net income attributable to Newmont's common shareholders
fell to $315 million, or 63 cents a share, from $490 million, or
97 cents, a year earlier.
Excluding a restructuring charge and other unusual items,
earnings fell to $354 million, or 71 cents a share, from $578
million, or $1.15. Analysts on average had expected earnings of
77 cents a share, according to Thomson Reuters I/B/E/S.
Sales fell to $2.18 billion from $2.68 billion, compared
with the consensus estimate of $2.25 billion.
Newmont's shares slipped 1.4 percent to $33.50 in
aftermarket trade in New York.