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UPDATE 1-Gold miner Newmont's income beats market, lowers costs

Published 2016-07-20, 04:50 p/m
© Reuters.  UPDATE 1-Gold miner Newmont's income beats market, lowers costs
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(Adds analyst expectations, production, outlook)

July 20 (Reuters) - Newmont Mining Corp (NYSE:NEM) NEM.N reported higher second-quarter adjusted net income on Wednesday, blowing past analysts' expectations, on the back of higher gold production and lower costs.

Newmont, the world's second biggest gold producer by market value, also lowered its cost forecast and its stock rose.

The U.S.-based miner said adjusted income rose to $231 million, or 44 cents a share, in the quarter to end-June from $131 million, or 26 cents a share, in the same period a year ago.

Analysts expected the company, which also mines copper, to earn, on average, 29 cents a share, according to Thomson Reuters I/B/E/S. Newmont's stock rose to $40.20 after hours from a $39.29 close.

Newmont, which has mines in the Americas, Africa, Australia and Asia lowered its forecast for all-in sustaining costs - the gold industry benchmark - to between $870 and $930 an ounce in 2016. Its previous range was between $880 and $940 an ounce. It held steady its 2017 forecast at between $850 and $950 an ounce.

It also gave new forecasts for gold production excluding its stake in the Batu Hijau mine in Indonesia, which it is selling. Newmont now expects attributable gold production of between 4.7 million and 5.0 million ounces in 2016 rising to between 4.9 million and 5.4 million ounces in 2017. Production is expected to remain stable at between 4.5 million and 5.0 million ounces through 2020.

In the second quarter, attributable gold production rose to 1.3 million ounces from 1.2 million a year ago while all-in sustaining costs improved to $876 an ounce from $909. Copper output, however, dropped to 38,000 tonnes from 42,000 tonnes.

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