Summary
Newmont Mining Corporation (NEM) reported a significant net loss of $2.019 billion for the second quarter of 2013, a substantial decline from the $279 million net income in the same period of the prior year. This downturn was largely driven by a substantial write-down of $2.26 billion, primarily impacting the Boddington mine, due to revised lower long-term gold and copper price assumptions and increased operating costs. Consequently, earnings per share (EPS) for the quarter was a loss of $4.06, compared to $0.56 in the prior year. Despite the significant write-down, the company's operational performance showed mixed results. While sales declined, gold production remained relatively stable year-over-year, though costs applicable to sales per ounce increased significantly due to the write-downs. Copper production also saw a decrease. The company continues to invest in its project pipeline, with capital expenditures focused on projects like Akyem, Phoenix Copper Leach, and Turf Ventilation Shaft. Management highlighted the challenges faced, particularly with the Conga project in Peru due to community protests, which led to the suspension of construction activities and a potential accounting impairment. Overall, the second quarter was heavily impacted by asset impairments and a challenging commodity price environment. Investors will be closely watching the company's ability to manage costs, advance its development projects, and navigate the volatile commodity markets in the coming periods.
Financial Highlights
53 data points| Gross Profit | -$97.00M |
| R&D Expenses | $46.00M |
| Operating Expenses | $4.63B |
| Operating Income | -$2.13B |
| Net Income | -$2.06B |
| EPS (Basic) | $-4.14 |
| EPS (Diluted) | $-4.14 |
| Shares Outstanding (Basic) | 497.00M |
| Shares Outstanding (Diluted) | 497.00M |
Key Highlights
- 1Reported a net loss of $2.019 billion for Q2 2013, a significant decrease from a net income of $279 million in Q2 2012.
- 2Recorded a substantial write-down of $2.26 billion, primarily impacting the Boddington mine, due to revised lower long-term commodity price assumptions and increased operating costs.
- 3Earnings per share (EPS) for Q2 2013 was a loss of $4.06, compared to $0.56 in Q2 2012.
- 4Consolidated gold production was 1.284 million ounces, a slight decrease from 1.362 million ounces in Q2 2012.
- 5Costs applicable to sales per ounce for gold increased significantly to $885 from $681 in Q2 2012, largely due to stockpile and leach pad write-downs.
- 6Capital expenditures decreased to $1.12 billion in the first half of 2013 from $1.58 billion in the first half of 2012, with ongoing investments in development projects.
- 7The company continues to face challenges with the Conga project in Peru due to community protests, leading to suspended construction and a potential accounting impairment.