Newmont Mining Corp. reported that its net income slipped 44 percent in the first quarter of 2013, however the company still expects to have full year production of gold and copper of 4.8 million-5.1 million oz and 150 million-170 million lbs, respectively.
The slip in income was the result of gold production being down 11 percent during the same period.
Newmont reported attributable gold production of 1.165 million oz and 38 million lbs of copper production, down 11 percent and up 9 percent respectively, from the first-quarter 2012.
The company reported attributable net income from continuing operations of $315 million or 63-cents per share, down 44 percent from $561 million or $1.13 per share in the first quarter of 2012. Results for the first quarter of 2013 were influenced by lower grade and recovery at Carlin and lower grade at Twin Creeks in Nevada, and shipping delays resulting in lower concentrate sales.
Adjusted net income for the first quarter was $354 million or 71-cents per share, down from $578 million or $1.17 per share for the first quarter of last year.
Meanwhile, Newmont is lowering its 2013 attributable and consolidated capital expenditure guidance by $100 million to $2 billion-$2.2 billion and to $2.3 billion-$2.5 billion, respectively.
Consolidated all-in sustaining costs were $1,086/oz during the first quarter, or $1,115/oz on an attributable basis due to lower gold and copper production, partially offset by lower advanced projects, exploration and sustaining capital spending. Newmont expects all-in sustaining costs of between $1,100 to $1,200/oz for this year.
“We made progress to build long-term shareholder value through disciplined capital allocation and cost and efficiency improvements,” said Gary Goldberg, Newmont CEO. “We cut planned 2013 capital expenditure guidance by $100 million and reduce our consolidated spending by $217 million compared to the first quarter of 2012.”
“This drove our all-in sustaining cost per ounce to the lower end of guidance despite some production challenges,” he noted. “We continue to build on this and the $130 million savings we realized last year by streamlining operation and overhead costs and investing in more profitable production to improve shareholder returns.”