What was the net income for the quarter ended June 30, 2005, and how does it compare to the prior year?

For the quarter ended June 30, 2005, Newmont Mining Corporation reported a net income of $50 million, or $0.11 per diluted share. This is an increase compared to the $37 million, or $0.08 per diluted share, reported for the same period in 2004.

What caused the loss from discontinued operations?

The loss from discontinued operations was primarily due to a pre-tax impairment loss of $39 million recognized in the second quarter of 2005. This related to the Golden Grove copper-zinc operation in Australia, which was classified as held for sale and subsequently sold in July 2005.

How did changes in commodity prices and sales volumes affect the company's revenue?

Gold sales revenue increased in the quarter due to higher realized gold prices, which more than offset a slight decrease in ounces sold. However, base metals revenue, particularly copper, declined in both the quarter and the year-to-date period, primarily due to lower sales volumes and higher treatment and refining charges, despite some price increases.

What are the company's plans for future development and capital expenditures?

Newmont announced plans to proceed with the development of the Akyem project in Ghana, with estimated development costs of approximately $500 million and production expected to start in the second half of 2008. Capital expenditures for property, plant, and mine development increased significantly to $535 million for the first six months of 2005, and the company expects to spend between $1.1 billion and $1.2 billion on these additions in 2005.

NEM/NEMCL 10-Q Quarterly Report Q2 FY2005

Summary

Newmont Mining Corporation reported financial results for the quarter and six months ended June 30, 2005. For the three months ended June 30, 2005, the company reported net income of $50 million, or $0.11 per diluted share, an increase from $37 million, or $0.08 per diluted share, in the prior year period. For the six months ended June 30, 2005, net income was $134 million, or $0.30 per diluted share, up from $124 million, or $0.28 per diluted share, in the same period last year. Revenue from gold sales increased slightly in the quarter due to higher prices, but decreased year-to-date due to lower volumes. Base metals revenue saw a decline in both periods. The company's financial performance was impacted by a significant loss from discontinued operations, primarily related to the write-down of assets at the Golden Grove mine in Australia, which was sold in July 2005. Despite this, income from continuing operations showed strength, more than doubling in the second quarter compared to the prior year, driven by higher gold and copper prices, as well as increased investment income. However, operating costs, particularly for diesel and other commodities, increased, and consolidated gold and copper volumes sold were lower year-over-year.

Key Highlights

1Net income for the second quarter of 2005 increased to $50 million ($0.11/share) from $37 million ($0.08/share) in Q2 2004.
2Income from continuing operations more than doubled in Q2 2005 to $84 million ($0.19/share) from $41 million ($0.09/share) in Q2 2004.
3Gold sales revenue for the quarter increased by 4% to $842 million due to higher realized prices, despite a 2% decrease in ounces sold.
4Copper sales revenue decreased by 6% to $164 million in the quarter due to lower volumes and higher treatment and refining charges, partially offset by higher prices.
5The company reported a loss from discontinued operations of $34 million for the quarter, primarily due to an impairment loss on the Golden Grove mine assets.
6Operating costs increased due to higher commodity prices (diesel) and labor costs.
7Capital expenditures for the six months ended June 30, 2005, increased significantly to $535 million from $336 million in the prior year, reflecting investments in property, plant, and mine development.

NEWMONT Corp /DE/ Quarterly Report for Q2 Ended Jun 30, 2005

Summary

Key Highlights

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