Freeport Indonesia to process 400,000t of copper concentrate at new smelter
Earlier this month, Freeport obtained an export permit for the rest of the year from the government.
Newmont Mining Corp (NYSE:NEM) stock was up in after-hours trade on Wednesday after the Denver-based announced second quarter earnings that hit targets on production, cash flow and cost control and improved the outlook for the year.
Newmont, worth $9.8 billion in New York, is the only gold company that forms part of the S&P500 index and has been publicly traded since 1940.
Although sharply down from its May highs, compared to its peers Newmont has had a good 2015, with year to date market capitalization down only 2%.
The world’s second largest gold miner in terms of output increased earnings by nearly 30% to $131 million in earnings compared to the second quarter last year and at the same time cut all-in costs by to $909 per ounce, a 14.5% improvement.
The company generated cash from continuing operations of $441 million and free cash flow from continuing operations of $119 million, compared to $378 million and $124 million in the prior year quarter.
While others are disposing of mines, Newmont is building its portfolio and last month acquired a 100% interest in the Cripple Creek & Victor gold mine in Colorado for $820 million in cash from AngloGold Ashanti. The company estimates 2016 production of between 350,000 and 400,000 ounces at the mine.
Including the acquisition Newmont now expects attributable gold production of between 4.7 million ounces and 5.1 million ounces in 2015, up from a prior forecast of 4.6m – 4.9m ounces.
The company sees production rising to 5.2m – 5.5m ounces in 2017 while consolidated all-in sustaining costs are now seen at $920 – $980 ounces in 2015, down from an earlier forecast of $960 – $1,020.
Newmont President and CEO Gary Goldberg, President and Chief Executive Officer said “favorable oil prices and exchange rates largely offset the impacts of lower metal prices.”
