Carlin output adds up for Newmont Mining

New York-listed Newmont Mining posted another profitable quarter on the strength of more than half a million ounces of gold produced.

The company’s gold mining division, Newmont Gold (NYSE), earned US$27.9 million (or 25 cents per share) in the third quarter, compared with US$22.4 million (19 cents per share) a year earlier.

Newmont Mining (whose sole asset is its 89.2% interest in Newmont Gold) earned US$25.3 million, compared with US$20.4 million a year ago.

Newmont Gold Chairman Ronald Cambre says the new figures “establish a benchmark from which the company can continue to grow.”

Total gold output rose by 19% over the third quarter of 1994, thanks to a 15% increase at Newmont’s operations in Nevada’s Carlin Trend and a 60% boost in the company’s share from the Yanacocha operations in Peru.

Output from Carlin amounted to 446,700 oz., as cash costs fell to US$205 per oz.

>From Yanacocha, Newmont extracted 54,500 oz. at a cost of US$122 per oz.

In the final days of the quarter, an additional 3,100 oz. were realized from the first shipments from the Newmont-Zarafshan joint venture in Uzbekistan.

Newmont experienced a US$3 drop in its realized gold price for the period, although this was offset by a US$12 drop in overall cash operating costs to US$194 per oz.

New production from the bio-oxidation process at the company’s Carlin area mines will be included in fourth-quarter results.