Newmont Mining Corp. (
NYSE: NEM), the second-largest gold producer, reported a surprise loss after taking a $2.26 billion writedown on the value of stockpiles and two Australian mines following a slump in gold prices.
The second-quarter net loss was $2.1 billion, or $4.21 a share, compared with net income of $279 million, or 56 cents, a year earlier, the Greenwood Village, Colorado-based miner said today in a
statement. The net loss, excluding the writedown, was 10 cents a share, compared with the 42 cent profit a share average of 17
estimates compiled by Bloomberg.
Gold mining companies have announced at least $15 billion of writedowns in the past two months after the precious metal’s steepest quarterly drop in more than nine decades.
Newcrest Mining Ltd. (NCM) said June 7 it may take a charge of as much as A$6 billion ($5.6 billion) and
Goldcorp Inc. (G), the biggest gold producer by market value, said yesterday it took a writedown on the value of assets of $1.96 billion.
The second-quarter results were released after the close of regular trading in New York, where Newmont rose 1.1 percent to $29.93 at the close.
Newmont said it was taking impairment charges on its Boddington and Tanami mines in
Australia, and writing down the value of stockpiles and ore on leach pads.
The producer said second-quarter sales fell to $1.99 billion from $2.23 billion. The average of seven estimates was for $2.09 billion.
Gold futures in New York rose 0.7 percent to settle at $1,329.50 an ounce yesterday. The metal has dropped 31 percent from a record $1,923.70 in September 2011.
(Newmont scheduled a conference call for 10 a.m. New York time today. U.S. callers should dial 1-888-566-1822, international callers 1-312-470-7116. Pass code: Newmont.)