Newmont slides after taking $1.6 billion Arctic hit
Shares in Newmont Mining was down 2.7% in early afternoon trade on Friday after the company announced it is taking a $1.6 billion hit over its Hope Bay project in Canada.
The $30 billion company is still up 3.5% year to date.
Newmont is the second largest gold producer in the world and the writedown of the project located in Nunavut tipped it into an overall $1 billion loss in the fourth quarter.
Newmont put Hope Bay on care and maintenance at the beginning of February.
The Denver, US-based company said in its results announcement it will now concentrate on better prospects in Australia, Peru and Ghana.
Newmont’s plans are to expand gold production from 5.2 million ounces to 7 million ounces by 2017.
The company said yesterday capital expenditure in 2012 is expected to top $4 billion.
Newmont has also run into trouble with its $4.8 billion Conga project, near its producing mine Yanacocha.
Newmont stopped construction of the copper-gold project in November after violent protests in the poor Cajamarca region of northern Peru.
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3 Comments
RonBarson
That’s a shame there is lots of gold there.
Dav1942
OH, Thats to bad….BOO HOO!!!!
Wincor Group
hello we have several buyers looking to buy gold cif to USA IS THIS A OPTION that is doable for this mining company need 200 kgs first tranche then will buy on a monthly contract once they see gold is real and seller sees there money is real please email me at wincorgroup@yahoo.com att.Nancy Matthews or Call me at 713-947-8164 we need cif gold
asap also one buyer has agold extraction machine he will give to a miner that can get 90 % of gold to a mine that will resell the gold to him on a contract monthly basis and my company will require a contract also of 3 kgs + flexiable to the current market value of gold per tranche clause in contract for helping the mine aquire this machine should this business transaction be finalized with your miner and mines thanks and May God Bless all involved in this Deal .