RPT-Newmont sees higher results, hedging
DENVER, July 22 (Reuters) - Leading U.S. gold producer Newmont Mining Corp. should have stronger earnings in the second half of 1999 than in the first half, President Wayne Murdy said.
Murdy, who was named president on Wednesday, also said: ''Clearly, as we move forward you'll see (gold) hedging activity done at Newmont.''
Murdy said stronger performance in the second half of 1999 would be due to higher production from overseas operations and cost efficiencies.
''There's a continued press throughout the organization to lower costs,'' Murdy said in an interview.
Newmont has traditionally not hedged its gold production because of its low production costs and to give investors the maximum opportunity when prices do rise, Murdy said.
Gold prices are at 20-year lows, around $255 a troy ounce.
Murdy said any hedging would represent a ''very, very small percentage of reserves,'' or a ''relatively large percentage of a year's production.''
He said it would be a ''different philosophy than what you see from some others (gold producers) and we're going to try to still maintain the maximum upside pressure.''
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