Newmont Gold (NGC-N) ranked among the world’s largest and lowest-cost gold producers in 1997, but first-quarter results indicate that the company may surpass last year’s achievements.
Newmont Mining (NEM-N) holds a 94% interest in Newmont Gold, its only asset. The two entities operate as a single economic unit, though direct interests in mines and mineral exploration projects are credited to Newmont Gold.
First-quarter 1998 production attributable to Newmont Gold totalled more than 1 million oz. gold at a cash cost of US$184 per oz. By comparison, the company produced 847,000 oz. gold at a cash cost of US$198 per oz. in the first three months of 1997.
Total production costs dropped to US$249 per oz. gold in the first quarter, compared with US$264 per oz. in the corresponding period of 1997.
Newmont Gold’s profits were hurt by low gold prices in the first quarter.
The company recorded net income of US$32.8 million (20 cents per share), compared with US$54.7 million (33 cents per share) in the corresponding period of 1997. Its realized gold price dropped to US$324 per oz. in the quarter, compared with US$370 per oz. in the first quarter of 1997.
Production from its Nevada operations totalled more than 728,000 oz. during the first quarter, an increase of 24% over the corresponding period of 1997, and cash costs dropped to US$205 per oz. gold from US$214 per oz.
At its foreign operations, which include mines in Peru, Uzbekistan and Indonesia, Newmont Gold’s share of first-quarter production was 262,700 oz.
gold at a cash cost of US$132 per oz.
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