DOW JONES NEWSWIRES
Newmont Mining Corp.'s (NEM) second-quarter profit dropped 40%
as results fell short of analysts' expectations as lower copper
prices and a higher tax rate more than offset lower mining
costs.
The industry has seen gold prices somewhat unable to hold
rallies. In the second quarter, gold prices edged higher, supported
by increasing signs that the worst of the global recession may be
past and an uptick in inflation fears. Newmont has cut jobs to
reduce costs.
The world's second-largest gold miner after Barrick Gold Corp.
(ABX) reported a profit of $162 million, or 33 cents a share, down
from $271 million, or 59 cents a share, a year earlier. The latest
quarter included 10 cents in write-downs and other items.
Revenue rose 6.6% to $1.6 billion.
Analysts' estimates were for per-share earnings of 47 cents on
revenue of $1.64 billion, according to a poll by Thomson
Reuters.
The company had a $136 million income-tax cost in the latest
quarter, compared with a $42 million benefit a year earlier.
Looking ahead, Newmont trimmed the high end of its gold-sales
forecast but reiterated its copper view. The company also increased
its price targets for both metals, one-third in the case of
copper.
Shares closed Wednesday at $41.98 and were inactive premarket.
The stock has almost doubled since November.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com