Newmont Fourth-Quarter Earnings Miss Estimates as Gold Drops

Newmont Mining Corp., the world’s second-biggest gold producer, reported fourth-quarter earnings that missed analysts’ estimates as gold prices fell.

The company reported a net loss of 50 cents a share, compared with net income of 3 cents a year earlier, Greenwood Village, Colorado-based Newmont said Wednesday in a statement. Earnings excluding one-time items were 4 cents a share, less than the 13-cent average of 19 estimates compiled by Bloomberg.

Newmont revenue and earnings were impacted by lower shipments of metal from Indonesia after an export permit for copper from its Batu Hijau mine was delayed, the company said in the statement. Sales fell 10 percent to $1.8 billion from $2.0 billion a year earlier.

While larger rival Barrick Gold Corp. has been selling assets, Newmont has responded to a prolonged slump in gold prices by continuing to expand. In June, the company agreed to buy the Cripple Creek & Victor mine in Colorado for $820 million and in October it announced plans to expand its Tanami operations in Australia.  

Newmont’s reserves increased as the company added 5 million ounces of gold reserves through exploration, along with 4 million ounces with the company’s purchase of the Cripple Creek & Victor complex, the company said in a separate statement Wednesday. That more than offset depletion of 6.5 million ounces, Newmont said.

“They were quite successful at growing reserves at a number of operations,” Andrew Kaip, a Toronto-based analyst at BMO Capital Markets, said in a telephone interview on Wednesday.

“Our plans for 2016 and beyond remain focused on improving our underlying business, strengthening our portfolio and creating value for shareholders,” Chief Executive Officer Gary Goldberg said in the statement.

The results were released after the close of regular trading in New York, where Newmont rose 1.1 percent to $24.94 on Wednesday. The shares have increased 38 percent this year. The stock traded at $24.12 as of 5:40 p.m. in after-hours trading.

Gold futures fell 8 percent from a year earlier to average $1,104.58 an ounce in the fourth quarter. The price has risen 14 percent in 2016.

(The company scheduled a conference call to discuss the results on Thursday at 9:30 a.m. New York time. U.S. and Canadian callers can dial +1-800-857-6428, and international callers +1-517-623-4916. The passcode is Newmont.)

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