Buoyed by record result, Newmont earnings go up

With five operating gold mines and 15 million oz in proven ore reserves, New York-based Newmont Gold is moving rapidly toward the number one spot in North America’s gold production leagues.

The 95%-owned subsidiary of Newmont Mining expects to produce 930,000 oz gold from open pit operations at the Carlin trend in Nevada where is recently pulled a record-breaking drill intersection.

Recorded at Newmont’s Post deposit, it assayed at 0.93 oz gold per ton across 470 ft.

Newmont Gold reported net income of $23.9 million, or 23 cents per share in the fourth quarter of 1987 compared to $14.3 million or 14 cents per share during the same period last year.

During fiscal 1987, the company also reported earnings of $85.8 million or 83 cents per share compared to $40.6 million, or 42 cents a share in 1986.

Gold sales during the quarter were 152,000 oz up from 129,600 in the first quarter of 1986. During the 12-month period, sales amounted to 589,000 oz, up 24% from the 473,900 sold in 1986.

Newmont received an averaged $477 per oz for its gold in the recent fourth quarter compared to $398 in last four months of 1986. Cash cost per oz sold was $212 in 1987 up from $177 in the fourth quarter of 1986.

The company says royalty costs were up $16 per oz due to higher gold prices. “Part of the cost increase was also due to the treatment of lower grade ore,” the company says.