Newmont starts year with loss

Fresh from acquiring Franco Nevada Mining and Normandy Mining, Newmont Mining ended the May 9-14 period down $1.17 to US$28.05 as the world’s number-one gold producer posted a first-quarter net loss of US$10.9 million, owing in large part to reduced production.

The loss translates into US4 per share and compares with a year-ago loss of US$39.1 million, or US20 per share.

Newmont CEO Wayne Murdy cautioned that the first quarter “marks a transition and will not be indicative of our full year’s performance. This was an extremely ‘noisy’ quarter, with consolidated results for just half a quarter and various accounting adjustments relating to the acquisitions.”

Looking ahead, Newmont expects to produce about 7.5 million equity ounces at US$180 per oz. during all of 2002.

Among the remaining U.S.-listed precious metals majors: AngloGold dropped $1.22 to US$28.78; Ashanti Goldfields sank 45 to US$5.45; Compania de Minas Buenaventura plummeted $1.70 to US$26.29; Gold Fields rose 0.25 to US$14.33; and Harmony Gold jumped 79 to US$15.32.

Meanwhile, the base metal giants posted strong gains on resurgent metal prices: Alcoa added $1.82 to finish at US$36.25; Phelps Dodge tacked on $1.80 to US$38.40; BHP Billiton advanced 80 to US$12.40; Freeport-McMoRan Copper & Gold rose 27 to US$17.95; Rio Tinto soared $3.60 to US$79; Anglo American gained $1.14 to US$17.59; Southern Peru Copper eased up 24 to US$15.04; and WMC advanced 70 to US$20.90.

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