Newmont has income drop in 1987 third quarter

While rebounding from the beating it took during the recent takover bid by corporate raider T. Boone Pickens, Newmont Mining Corp. has reported a drop in net income for the 1987 third quarter.

Newmont says its third quarter net income fell to $21.4(US) million or 32 cents per share from $46 million or 76 cents per share during the same period in 1986.

For the first nine months of 1987, Newmont Mining’s net income was $336.9 million or $5.31 per share compared with $116.6 million, or $1.92 per share during the first three quarters of 1986.

According to the company, net income gains for the nine-month period were unusually high due to $337.5 million in pretax gains from second-quarter sales to the public of Newmont Gold and a 25% interest in Newmont Australia.

Newmont Mining also declared a regular quarterly dividend of 15 cents per share of common stock, payable Dec 10 to shareholders of record on Nov 25.

Newmont says its three operating segments Newmont Gold, Newmont Australia and Newmont Oil, reported that pretax income was up in the 1987 quarter from 1986 levels.

Newmont’s gold interests, which consist of a 90% interest in Newmont Gold Co. and 75% of Newmont Australia, reported pretax income of $36.3 million in the recent third quarter.

That was up from $22.1 million in the third quarter of 1986. During the quarter, Newmont Gold sold 147,000 oz of gold compared with 131,000 oz in the same period last year.

Newmont Australia’s production was also up. It sold 41,000 oz compared with 23,000 in the 1986 third quarter. Gold sales averaged $463 per oz compared to $381 in the third quarter of 1986.

In Newmont’s energy segment, third quarter income was $15.3 million before tax, up from $10.3 million in the 1986 third quarter. The company says pretax income increased at both 100%-owned Newmont Oil and 49.97%-owned Peabody Holding Co.

According to Newmont, the income gain attributable to Peabody over the 1986 period, was due mainly to the former company’s increase in ownership from 30.7% in 1986.