Tuesday, April 30th 04:09 PM IST

Newmont profit drops on lower Gold output

# Newmont  # Gold output  # profit decline  #   

Newmont, the world's second-biggest gold producer after Barrick Gold Corp has struggled in recent quarters with lower production and higher costs.

LONDON(BullionStreet): Newmont Mining Corp announced decline in first quarter profit, mainly due to drop in gold production.

In a statement,the the Greenwood Village-based gold miner said its first-quarter profit dropped 36 percent in the face of a 11 percent drop in gold production.

Newmont, the world's second-biggest gold producer after Barrick Gold Corp has struggled in recent quarters with lower production and higher costs.

A drop in the spot gold price earlier this month added to gold miners' concerns, and led Standard & Poor's Ratings Services to lower its outlook on Newmont.

Newmont reported a first-quarter profit of $315 million, or 63 cents a share, down from $490 million, or 97 cents a share, a year earlier. Excluding write-downs and other adjustments, per-share earnings fell to 71 cents from $1.17. Revenue shrank 19% to $2.18 billion.

Analysts recently projected a per-share profit of 77 cents a share on revenue of $2.25 billion.

Attributable gold production fell 11% to 1.17 million ounces, while attributable copper output grew 9% to 38 million pounds.

The company said it is lowering its full-year attributable capital expenditure outlook by $100 million to a range of $2 billion to $2.2 billion, and its consolidated capital expenditure outlook by $100 million to $2.3 billion to $2.5 billion.

Shares fell 2.3% to $33.20 in after-hours trading. Through the close, the stock was down 27% since the start of the year.

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