Newmont Gold’s gold output tops 1-million-oz level

During the first nine months of 1989, Newmont Gold produced a record 1.07 million oz from its open pit mines, up from 585,800 oz at the same time last year.

Newmont said its 9-month gold output was boosted by a 2-year expansion program in Nevada where production is expected to reach 1.5 million oz next year. Production for the nine months ended Sept 30 exceeded the Colorado company’s production for all of 1988.

As a result, net income for the first nine months of this year was $77.8 million(US) or 74 cents a share, compared with $70.9 million or 68 cents a share for the same period last year.

Newmont Gold reported third quarter net income of $33.5 million or 32 cents a share, compared with $27.2 million or 26 cents a share in the third quarter of 1988. Newmont says the increase came despite the decline in the price received for gold to $368(US) per oz in the quarter from $430 per oz at the same time last year.

Newmont’s third-quarter gold production was up 70% to 426,900 oz from 251,300 oz during the same period in 1988. Despite the treatment of lower ore grades, the cash cost of production in the 1989 quarter benefited from the planned record level of production, Newmont said.

At $210 per oz, compared with $227 per oz last year, the third quarter’s cash cost will be the lowest for this year and is consistent with the company’s previously projected annual average cost of about $230 per oz.

Newmont Gold has 16 deposits along the 40-mile stretch of land known as the Carlin gold trend, and proven and probable gold reserves stand at 16.3 million oz.

On Sept 30, Newmont Gold had more than 104.8 million shares outstanding.

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