July 27 (Bloomberg) -- Newmont Mining Corp., the largest U.S. gold producer, reported second-quarter profit that missed analysts’ estimates as costs were higher and production declined more than projected.
Net income fell 28 percent to $279 million, or 56 cents a share, from $387 million, or 77 cents, a year earlier, Greenwood Village, Colorado-based Newmont said yesterday in a statement. Profit excluding one-time items was 59 cents a share, less than the 93-cent average of 16 estimates compiled by Bloomberg. Sales declined 6.5 percent to $2.23 billion, trailing the $2.47 billion average of six estimates.
Newmont’s so-called cost attributable to gold sales was $681 an ounce, compared with $583 a year earlier. Greg Barnes, a Toronto-based analyst at TD Securities Inc., estimated $632.
Newmont fell 3.4 percent to $44.53 at the close in New York.
The company, which has mines in the Americas, the Asia-Pacific region and Africa, is developing a new mine in Ghana and is expanding its Tanami operations in Australia. Newmont halted construction of its $4.8 billion Minas Conga project in Peru in November after clashes between police and opponents of the mine. President Ollanta Humala authorized Newmont to resume work on Conga on June 23 after a six-month deadlock.
Newmont’s second-quarter gold production was 1.18 million ounces, compared with 1.22 million ounces a year earlier. Anita Soni, an analyst at Credit Suisse Group AG in Toronto, estimated 1.27 million ounces.
The company narrowed its forecast for full-year production to 5 million to 5.1 million ounces, from 5 million to 5.2 million.
Gold futures averaged $1,613 on the Comex in New York in the quarter, 7 percent higher than a year earlier. Gold prices have posted 11 consecutive annual gains.
Barrick Gold Corp., based in Toronto, is the largest gold producer.
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