Newmont Mining (NEM-N) saw a dramatic turnaround in its bottom line in 2002, thanks to rising gold prices and the inclusion of reveunes gained though its Febraury 2002 merger with Normandy Mining and Franco-Nevada Mining.
Newmont turned a profit in 2002 of US$154 million (US41 per diluted share) on revenue of US$2.7 billion, up from a loss of US$54 million (28) on revenue of US$1.7 billion in 2001.
The fourth quarter of 2002 was Newmont’s best, with a US$75-million profit on US$777 million in revenue, compared with the US$18 million gained on US$450 million in revenue inthe corresponding period in 2001.
Now the world’s biggest gold company both in terms of production and market capitalization, Newmont sold 7.6 million oz. gold in 2002, up from 5.5 million oz. in 2001.
Broken down by region Newmont’s 2002 equity sales came from: North America, 3.2 million oz. produced at a total production cost US$271 per oz.; South America, 1.4 million oz. at US$189 per oz.; Australia, 1.7 million oz. at US$265 per oz.; and other regions, 637,000 oz. at US$235 per oz.
Production costs between the two periods rose just US$7 to US$242 per oz., while the company’s average realized price for its production jumped to US$313 per oz. in 2002, up from US$271 per oz. in 2001.
Newmont ended 2002 with 401.7 million outstanding shares (403 million when diluted), up from 195.1 million at the end of 2001.
Be the first to comment on "Newmont sees profits surge in 2002 (March 31, 2003)"