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Newmont net income soars despite lower output, sales

Keywords: Tags  Newmont Mining, Gary Goldberg, copper, gold, Russell Ball, Mark Burton

LONDON — Shares in Newmont Mining Corp. rose 2.5 percent Feb. 22 after the miner announced 2012 net income of nearly $1.81 billion, up fivefold from $366 million the previous year.

Despite rising production costs, lower output volumes and a 4.7-percent decline in sales to $9.87 billion, Newmont avoided making further large-scale write-downs following a $2.1-million charge against its assets in 2011.

Newmont’s copper production totaled 143 million pounds last year, down 27 percent from 2011, and gold production fell 4 percent to 5 million ounces as lower output in Africa and the Asia-Pacific region offset higher production in North America.

Newmont, echoing other major mining companies in recent weeks, stressed its commitment to capital allocation discipline in response to rising costs.

Gary Goldberg, who will become Newmont’s president and chief executive officer March 1, will treat capital allocation and cost control as an immediate priority, the Greenwood Village, Colo.-based company said.

Newmont also announced that executive vice president and chief financial officer Russell Ball will step down later in the year once a replacement is found.

A version of this article was first published by AMM sister publication Metal Bulletin.

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