Falling gold and copper prices have led Newmont Mining Corp. to report a Q1 profit decline of 36% along with lower grade and recovery at two Nevada operations, along with shipping delays contributing to lower concentrate sales.
Total sales revenue stood at $2.2 billion, a 19% drop from Q1 year-on-year. Gold sales in particular fell 11% from 2013 to 1.1 million oz; copper sales fell 16% to 31 million lb from 2012, even though production increased 9% to 38 million lb. Newmont CEO Gary Goldberg emphasized his company’s desire to progress despite challenges. “We made progress on our plans to build long-term value through disciplined capital allocation and cost and efficiency improvements,” he said.
This year, Newmont also announced cutting capital expenditures by $100 million, and now estimates attributable capital expenditures between $2 billion and $2.2 billion with a consolidated capex of $2.3 billion to $2.5 billion. Newmont continues its 2013 forecasts of gold and copper production at 4.8 million to 5.1 million oz and 150 million to 170 million lb, respectively.
Company officials also announced their first production at Ghana’s Akyem will begin later this year, while Phase 6 ore mining at Indonesia’s Batu Hijau will commence by late 2014, enhancing cash flow that year and in 2015.