Now they got Bloomberg to spin a negative story because the downgrade didnt work. ROFLMAO
Bloomberg is a paid service that will print any story you want for a price. They are part of the corruption that should be investigated by the SEC.
Its tooo obvious that someone is feeling really nervous right now about their positions in gold, and it isn't them that are long :)
Newmont Mining Says Profit Fell, Sees Output Lower
Denver, Feb. 7 (Bloomberg) -- Newmont Mining Corp., the world's No. 2 gold producer, said its fourth-quarter profit fell 30 percent as bullion prices fell close to 20-year lows. Newmont warned its mine output will shrink this year and costs will rise.
Profit from operations, excluding various asset write downs, fell to $34.1 million, or 21 cents a share, in the quarter from $48.9 million, or 29 cents, in the year-earlier period. Including asset write downs and other one-time items, net income fell to $19.7 million in the recent quarter, or 12 cents a share, from $46.8 million, or 28 cents.
``The continued low gold price was hugely disappointing, as it reduced earnings and eroded our share price and investor interest in all gold stocks,'' Chief Executive Wayne W. Murdy said in a statement.
Newmont warned that rising energy costs will increase its U.S. electricity bills, with mines in Nevada expected to pay as much as $20 million more this year. Total gold output, which rose 31 percent in the quarter to 1.6 million ounces, will fall as mines in Nevada and California produce 400,000 ounces less than last year. Overseas production will rise by 100,000 ounces.
The company plans to cut capital spending by about $100 million. Instead, it expected to cut operating costs and reduce its debt by $40 million or $50 million.
Existing mine projects are promising, ``but they are also capital intensive at a time when our attention is properly focused in the other direction -- on debt reduction,'' Murdy said. ``Given today's gold price, we believe investors would prefer that we continue to exercise firm discipline on capital expenditures until a higher gold price can assure an adequate rate of return.''
Newmont shares rose 13 cents to $15.08, after earlier dropping to $14.46, a two-month low. The stock is down by one- third in the past year.
While the company's production increase in the recent quarter helped boost revenue 11 percent to $476.8 million, average selling prices for gold fell 7 percent from the year-earlier quarter to $274 an ounce. In 1999, prices fell to a 20-year low of $253.20 an ounce.
Gold for April delivery fell 50 cents, or 0.2 percent, to $264.90 an ounce on the Comex division of the New York Mercantile Exchange. Newmont lowered its long-term outlook for prices to $300 an ounce from $325.
Feb/07/2001 16:54 ET
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