Summary
Newmont Mining Corporation's (NEM) first quarter 2013 results showed a significant year-over-year decline in both sales and net income attributable to stockholders. Sales decreased by 17% to $2.18 billion, primarily due to lower gold and copper volumes and prices. Net income attributable to Newmont stockholders fell to $315 million, or $0.63 per diluted share, from $490 million, or $0.97 per diluted share, in the prior year's quarter. This performance was impacted by reduced gold and copper production, lower realized prices, and increased unit costs across several segments. The company is actively managing its project pipeline, with a substantial portion of 2013 capital expenditures allocated to development projects like Akyem and Phoenix Copper Leach, which are on track for production in late 2013. However, the Conga project in Peru remains largely suspended due to local opposition, with spending focused on water infrastructure and social funds. Despite the near-term financial challenges, Newmont continues to focus on advancing its long-term growth strategy and maintaining financial flexibility.
Financial Highlights
54 data points| Gross Profit | $846.00M |
| R&D Expenses | $52.00M |
| Operating Expenses | $1.61B |
| Operating Income | $314.00M |
| Interest Expense | $65.00M |
| Net Income | $314.00M |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.63 |
| Shares Outstanding (Basic) | 497.00M |
| Shares Outstanding (Diluted) | 498.00M |
Key Highlights
- 1Sales for Q1 2013 decreased by 17% to $2.18 billion compared to $2.68 billion in Q1 2012, driven by lower gold and copper sales volumes and prices.
- 2Net income attributable to Newmont stockholders declined to $315 million ($0.63 per diluted share) from $490 million ($0.97 per diluted share) year-over-year.
- 3Consolidated gold production decreased by 13% to 1.28 million ounces, and copper production was relatively flat at 58 million pounds.
- 4Costs applicable to sales per ounce of gold increased by 22% and per pound of copper increased by 11% year-over-year.
- 5Capital expenditures for development projects, including Akyem and Phoenix Copper Leach, remain a focus, with approximately 40% of 2013 capex allocated to development.
- 6The Conga project in Peru remains suspended, with 2013 spending focused on water infrastructure and social initiatives rather than full construction.
- 7Cash and cash equivalents decreased to $1.38 billion at March 31, 2013, from $1.56 billion at December 31, 2012.