Summary
Newmont Mining Corporation (NEM) reported third quarter and nine-month results for the period ending September 30, 2005. For the third quarter, the company posted net income of $126 million, or $0.28 per diluted share, a slight decrease from $129 million, or $0.29 per diluted share, in the same period of the prior year. For the nine-month period, net income was $260 million, or $0.58 per diluted share, up from $253 million, or $0.57 per diluted share, in the prior year. The company benefited from higher realized gold and copper prices, though this was partially offset by increased commodity costs and lower sales volumes for both gold and copper. Significant events during the period included the sale of the Golden Grove operation, a gain on the sale of its investment in Kinross Gold Corporation, and ongoing exploration and development projects. The company's balance sheet shows a healthy increase in cash and cash equivalents to $1,095 million from $781 million at the end of 2004, indicating strong liquidity. Long-term debt also increased significantly, reflecting new debt issuances and project financing.
Key Highlights
- 1Net income for the third quarter was $126 million ($0.28/share), slightly down from $129 million ($0.29/share) in Q3 2004.
- 2Nine-month net income was $260 million ($0.58/share), an increase from $253 million ($0.57/share) in the same period of 2004.
- 3Revenue from gold sales increased 4% year-over-year for the quarter, driven by higher average realized prices, though ounces sold decreased.
- 4Copper sales revenue decreased by 6% for the quarter due to lower volumes, partially offset by higher prices.
- 5Cash and cash equivalents increased significantly to $1,095 million from $781 million at year-end 2004.
- 6Long-term debt increased to $1,790 million from $1,316 million at year-end 2004.
- 7The company reported a $20 million pre-tax gain from the sale of its investment in Kinross Gold Corporation in Q3 2005.