Anyone want to take a gander regarding the effects of the following press release?
Wednesday July 9 5:33 PM EDT
Company Press Release
Source: Newmont Gold Company
Newmont Posts First Million Ounce Quarter
DENVER, July 9 /PRNewswire/ -- Newmont Gold Company (NYSE:NGC) (94 percent owned by Newmont Mining
Corporation (NYSE:NEM)) produced more than 1 million equity ounces of gold in the second quarter of 1997 at a total cash
cost, including royalties, of approximately $195 per ounce. In the year ago quarter, Newmont and Santa Fe Pacific Gold
(NYSE:GLD - news) reported combined production of 735,000 ounces of gold at a weighted average cash cost of $222 per
ounce.
``Coupled with the results of the first quarter, this clearly establishes Newmont as North America's largest and lowest cost
producer.'' said Ronald C. Cambre, Newmont's Chairman, President and CEO. ``Increasing production and decreasing costs
reflect the underlying strength of our business as well as the early success in capturing synergies from the Santa Fe merger.''
As a result, Mr. Cambre said, despite a significantly lower gold price, earnings for the quarter are expected to exceed Wall
Street estimates of 24 to 25 cents per share, before merger related costs. The company will report earnings on July 30.
Mr. Cambre added:
* Production for the year will be approximately 3.8 million equity
ounces of gold at a cash cost of under $200 an ounce.
* While Newmont has been essentially unhedged, Santa Fe had hedged
its 1997 production of approximately 1.1 million ounces at an average of
$416 per ounce. Approximately 550,000 ounces are also hedged at that
price in 1998. As a result, the company's realized gold price in the
second quarter was $365 an ounce.
* Merger related and one-time costs of $115 million after tax will be
reported in the second quarter. This includes a $65 million break-up fee;
investment banking and legal fees; severance costs; the cost of closing
Santa Fe's Albuquerque headquarters, and the write off of certain Santa Fe
exploration properties and assets that do not meet Newmont's valuation
criteria.
``We have no particular insight into the future price of gold,'' Mr. Cambre said. ``But we remain confident that the inherent
quality of our assets will continue to position Newmont as the most competitive producer in the industry.''
SOURCE: Newmont Gold Company
Contact: Media, Doug Hock, 303-837-5812; Investors, Jack Morris, 303-837-5977, both of Newmont Gold Company
Judy @http://www.siliconheights.com |
