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UPDATE 1-Miner Newmont's quarterly profit misses as costs surge

Published 2017-02-21, 05:26 p/m
© Reuters.  UPDATE 1-Miner Newmont's quarterly profit misses as costs surge
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Feb 21 (Reuters) - Gold and copper miner Newmont Mining Corp (NYSE:NEM) NEM.N reported a smaller-than-expected quarterly profit on Tuesday, as costs and expenses jumped more than 51 percent.

Newmont, the world's second-biggest gold producer by market value, said gold production rose 17 percent to 1.3 million ounces during the fourth quarter.

The company produced 4.9 million ounces of gold in 2016, up 7 percent from a year earlier. all-in sustaining costs (AISC), the gold industry cost benchmark, fell to $918 an ounce in the three months ended Dec. 31, from $1,036 an ounce a year earlier.

Net loss attributable to stockholders from continuing operations widened to $391 million, or 73 cents per share, from $276 million, or 54 cents per share, a year earlier.

The company recorded a $970 million impairment charge related to a mine closure in Peru, which it had warned of in December. reported adjusted earnings of 25 cents per share.

Analysts on average had expected the company to earn 33 cents per share, according to Thomson Reuters I/B/E/S.

Newmont's costs and expenses jumped 51.3 percent to $2.58 billion in the fourth quarter.

Total sales rose 23.2 percent to $1.79 billion.

Shares of the company, which had gained 47.6 percent in the past 12 months, were down 1.6 percent at $36.84 in after-market trading.

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