Newmont Mining Corporation, the world’s second largest mining operator, more than doubled its profits in its second quarter results, thanks to higher gold and copper prices.
Net income rose to $382 million ($0.78 per share) compared to $162 million ($0.33 per share) in the second quarter of 2009. Gold production was reported at 1.3 million ounces, a rise of 12 per cent over Q2 2009.
Nevada produced 420,000 equity ounces of gold, slightly higher than the year ago quarter due to higher underground production at Midas and Leeville.
Equity gold and copper production during the second quarter at Batu Hijau in Indonesia were 82,000 ounces and 65 million pounds, respectively, increasing 49 per cent and 27 per cent in the second quarter of 2010 from 2009. The company continues to expect 2010 equity gold and copper production at Batu Hijau of between 365,000 and 400,000 ounces, and between 265 and 290 million pounds, respectively.
Newmont’s Australian mine, Boddington, continues to ramp-up to full production and produced 184,000 ounces of gold and 15 million pounds of copper during the second quarter. For 2011, the company expects gold production at Boddington of between 850,000 and 925,000 ounces as the operation begins its first year of steady-state production.
Consolidated capital expenditures were $319 million during the second quarter, down from $580 million in the second quarter of 2009 as the Boddington capital spending was substantially completed at the end of 2009.
The company is maintaining its 2010 consolidated capital expenditure outlook of between $1.4 and $1.6 billion, with approximately 30 per cent to be invested in each of the North America and Asia Pacific regions, and the remaining 40 per cent at other locations.
Approximately 40 per cent of 2010 consolidated capital expenditures are expected to be related to major project initiatives, including further development of the Akyem project in Ghana, the Conga project in Peru, Hope Bay in Canada, and the Nevada project portfolio, while the remaining 60 per cent is expected to be for maintenance and sustaining expenditures.
