Newmont Lowers Copper Production Estimate (NEM, FCX, SCCO, ABX)
Newmont Mining Corp. (NYSE: NEM) is out with its preliminary estimates on 2011 production and an outlook for 2012. In 2011, the company expects gold production of about 5.2 million ounces at an average selling price of $1,563/ounce. Copper production…
Newmont Mining Corp. (NYSE: NEM) is out with its preliminary estimates on 2011 production and an outlook for 2012. In 2011, the company expects gold production of about 5.2 million ounces at an average selling price of $1,563/ounce. Copper production is expected to total 206 million pounds at an average selling price of $3.54/pound. The cost of sales is expected to be $592/ounce of gold and $1.26/pound of copper.
Newmont is the world’s second largest gold miner, after Barrick Gold Corp. (NYSE: ABX), and among the largest copper producers with Freeport-McMoran Copper & Gold Inc. (NYSE: FCX) and Southern Copper Corp. (NYSE: SCCO)
For 2012, the company expects gold production to be flat, and has budgeted a selling price of $1,500/ounce. Copper production is expected to decline in 2012, to 150-170 million pounds, and the selling price is budgeted at $3.50/pound. Cost of sales is forecast at $625-$675/ounce of gold and $180-$2.20/pound of copper.
Shares of Newmont are down about -3% at $61.38 in a a52-week range of $50.05-$72.42.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
