Monday, July 29, 2013

Newmont takes US$1.77bil writedown after gold falls

TORONTO: Newmont Mining Corp, the second largest gold producer, reported a surprise loss after taking a US$1.77bil writedown on the value of two Australian mines and stockpiles following a slump in bullion prices.

Source from (The Star Online): http://www.thestar.com.my/Business/Business-News/2013/07/29/Newmont-takes-US177bil-writedown-after-gold-falls.aspx
Published: July 29, 2013

The second-quarter net loss was US$2.02bil, or US$4.06 a share, compared with net income of US$279mil, or 56 cents, a year earlier, the Greenwood Village, Colorado-based miner said yesterday in a statement.

Gold-mining companies have announced at least US$15bil of writedowns in the past two months after the precious metal’s steepest quarterly drop in more than nine decades in London.

Newmont took impairment charges on its Boddington and Tanami mines in Australia, and wrote down the value of stockpiles and ore on leach pads, the company said.

Goldcorp Inc said on Saturday it took a writedown on the value of assets of US$1.96bil, while Barrick Gold Corp, the biggest producer by sales, said yesterday that it expected to write down the value of a project on the border of Chile and Argentina by as much as US$5.5bil and is reviewing other assets for further charges. Newcrest Mining Ltd said on June 7 it may take a charge of as much as A$6bil (US$5.6bil).

Newmont rose 1.5% to US$30.38 at the close in New York. The shares have dropped 35% this year. — Bloomberg

No comments:

Post a Comment