Newmont Reported Record Quarterly Operating Cash Flow
DENVER, CO - Newmont Mining Corporation reported record operating cash flow of $989 million for the first quarter of 2011, compared to $728 million in the first quarter of 2010, an increase of 36%. Revenue rose to $2.5 billion, up 10% from a year ago. First quarter 2011 adjusted net income was $513 million, compared to $408 million in the first quarter of 2010.
First Quarter Highlights: Attributable gold and copper production of 1.3 million ounces and 57 million pounds, respectively; Record operating cash flow of $989 million, an increase of 36% from a year ago; Adjusted net income of $513 million, an increase of 26% from a year ago; First quarter revenue of $2.5 billion, an increase of 10% from a year ago; Average realized gold and copper price of $1,382 per ounce and $4.00 per pound, respectively; Gold and copper costs applicable to sales ("CAS") of $557 per ounce and $1.11 per pound, respectively ($562 per ounce and $1.23 per pound, respectively, on an attributable basis); Net attributable CAS for gold of $438 per ounce; and maintaining 2011 Outlook for gold and copper production, CAS, and capital expenditures.
"In the first quarter Newmont's continued focus on execution led to strong operating and financial results backed by a rock solid balance sheet," commented Richard O'Brien, President and CEO. "Based on strong early year performance, we are maintaining our 2011 Outlook for production, CAS, and Capex. While execution remains foundational, we have also embarked on delivering on our future growth plan, as we have recently announced our full funds construction decision for our Akyem project in Ghana, successfully closed our acquisition of Fronteer Gold, and reported a 44% increase in exploration spending over last year. Such actions reflect our plans highlighted at our recent Investor Day to produce up to 7 million ounces of gold and 400 million pounds of copper per annum by 2017 through the development of our highest returning projects in each of our four operating regions."
The Company is maintaining its previously announced 2011 Outlook for attributable gold production of 5.1 to 5.3 million ounces with costs applicable to sales of $560 to $590 per ounce on a co-product basis and 2011 attributable copper production of 190 to 220 million pounds at costs applicable to sales of between $1.25 and $1.50 per pound. Newmont is maintaining its 2011 attributable capital expenditure outlook of $2.1 to $2.5 billion, or $2.7 to $3.0 billion on a consolidated basis. Based on the Company's net average realized gold price of $1,382 per ounce in the first quarter 2011, the Board has approved a second quarter 2011 gold price-linked dividend of $0.20 per share, an increase of 33% over the $0.15 dividend paid out in the first quarter 2011, and an increase of 100% over the second quarter 2010 dividend. In the first quarter of 2011, the Company reported attributable gold and copper production of 1.3 million ounces and 57 million pounds, respectively, at costs applicable to sales of $557 per ounce and $1.11 per pound, respectively. Attributable gold production was essentially unchanged from the year ago quarter. Lower leach production from South America and lower grade stockpile production at Batu Hijau was offset by higher grade production in Africa and Other Australia/New Zealand. Costs applicable to sales increased 17% in the first quarter of 2011 from 2010 due to lower production from Yanacocha and Batu Hijau and higher waste mining and milling costs, partially offset by higher production from Ahafo, higher by-product credits and lower workers' participation costs at Yanacocha.
Attributable copper production decreased 37% due to lower grade stockpile production at Batu Hijau. Copper costs applicable to sales increased 42% in the first quarter of 2011 from 2010 due to lower production at Batu Hijau. Attributable gold production at Nevada was 433,000 ounces at costs applicable to sales of $643 per ounce during the first quarter. Gold production was essentially unchanged in the first quarter of 2011 from 2010 as higher mill production from underground ores was offset by lower leach production due to mine sequencing. Costs applicable to sales increased 7% in the first quarter of 2011 from 2010 due to higher waste mining, milling and diesel costs and lower leach production, partially offset by higher by-product credits. The Company continues to expect 2011 attributable gold production from Nevada of approximately 1.8 to 1.9 million ounces at costs applicable to sales of between $565 and $615 per ounce. The company's address is 6363 South Fiddler's Green Circle, Suite 800, Greenwood Village, CO 80111, 303.863.7414, fax: 303.837.5837.