U.S.Report Gold operations enhance Newmont Mining earnings

Newmont Mining’s (NYSE) interests in U.S. and Australian gold operations were the main factors behind an increase in the Colorado company’s first-quarter earnings. First-quarter net income was US$57.4 million or 85 cents a share, compared with US$9.4 million or 14 cents a share in the first quarter of 1989. The 1990 quarter included US$14.7 million, 22 cents a share, of net income from Newmont’s investment in coal producer Peabody Holding Co., which was sold recently to a subsidiary of English conglomerate Hanson Industries.

Hanson owns 49% of Newmont by virtue of having merged last year with British mining conglomerate Consolidated Goldfields.

Newmont’s first-quarter results also included a US$16.4-million gain on the sale and issuance of stock by 44.5% owned affiliate Newmont Australia.

First-quarter revenues increased to US$165.5 million from US$111.3 million in the equivalent period last year. Revenues in the first three months of 1990 included US$4.8 million which was realized in connection with the payment of the first instalment of the corporation’s gold loan.

Newmont also received an average US$414 per oz. from gold sales in the first three months of 1990, compared with US$405 per oz. last year.

Newmont’s 90.1% owned subsidiary Newmont Gold (NYSE) contributed US$46.8 million in pretax income during the quarter, compared with US$21.7 million at the same time last year.

By contrast, Newmont Australia provided US$3.3 million in pretax income during the quarter compared with US$2.7 million in the equivalent 1989 quarter. Newmont Mining (NYSE) $000s except per-share items* Quarter ended Mar. 31 1990 1989 Revenue $165,530 $111,344 Net earnings 57,407 9,403

per share 0.85 0.14 *US dollars