Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: 4figureau who wrote (856)	8/7/2002 10:13:27 AM
From: 4figureau	Read Replies (2) \| Respond to of 5423

FT.com High gold price helps Newmont reverse losses >>The company said it had closed out or delivered into a total of 724,000 ounces of committed gold positions during the quarter. In all, it had reduced Normandy's hedge book from 9.5m ounces in February to 6.6m ounces by the end of the quarter.<< By Matthew Jones Newmont Mining, Denver-based gold producer, on Wednesday said it was on-track to hit its debt reduction and cost-savings targets as it reported a sharp increase in second-quarter earnings. The group acquired Normandy Mining of Australia and Franco-Nevada of Canada in the first quarter to become the world's largest gold miner. It said the deals had allowed it to make cost reductions in procurement, through the integration of the Midas mine into its Nevada operations and through increased tax savings. es in excess of $75m by the fourth quarter of 2002," it added. Second-quarter net income surged to $64.8m compared with a loss in the corresponding period last year of $33.5m. This was comfortably ahead of analysts' consensus estimates of about $57m. Earnings a share were 16 cents compared with a loss last time of 17 cents a share. The improved result was driven by record gold sales of $604m following the acquisition, up 67 per cent on the second quarter of 2001. The average price of gold also increased 17 per cent to $314 an ounce as investors bought the metal as a safe haven from the troubled equity markets. Wayne Murdy, chief executive officer, said he expected an even stronger financial performance in the second half, despite a fall in the gold price to $306 an ounce in the last few weeks. "We remain comfortable with our gold sales target of 7.5m equity ounces for the full year. In addition, we are on-track to achieve our full year earnings forecast of $0.40 to $0.50 per common share...assuming a gold price of $300 an ounce for the remainder of 2002," he added. Newmont is aiming to become more levered to the improved gold price by reducing the hedge book it inherited from Normandy. Hedging - the practice of selling gold that will be mined in the future at fixed prices - is used to limit the impact of price falls on earnings but also controls the upside when prices rise. The company said it had closed out or delivered into a total of 724,000 ounces of committed gold positions during the quarter. In all, it had reduced Normandy's hedge book from 9.5m ounces in February to 6.6m ounces by the end of the quarter. Net income for the half-year rose to $54m compared with a net loss of $72.6m in the first half of 2001. Newmont shares closed at $24.95 on Tuesday in New York. biz.yahoo.com