Newmont Reports Results From Continuing Operations
DENVER, CO - Newmont Mining Corporation reported attributable net income from continuing operations of $429 million up 7% from $400 million in the third quarter of 2012. Third quarter results benefited from the sale of the Company’s investment in Canadian Oil Sands Limited for approximately $587 million, resulting in a pretax gain of $280 million. Adjusted net income2 was $227 million, or $0.46 per share, compared with $426 million, or $0.86 per share, for the prior year quarter. Results for the third quarter of 2013 were favorably impacted by higher production from Nevada and other Australia/New Zealand operations. Improved production and stable operating costs relative to the prior year quarter were offset by declines of 20% and 13%, respectively, in gold and copper prices.
Our efforts to improve costs and efficiencies are gaining momentum, and we have reduced consolidated spending by $700 million year to date
Consolidated spending down $700 million year to date, or 13% compared to the first nine months of 2012; All-in sustaining costs (AISC) of $993 per ounce, down 16% from the prior year quarter; Gold and copper costs applicable to sales (CAS) of $649 per ounce and $2.63 per pound, down 6% and up 11%, respectively, from the prior year quarter; Attributable gold and copper production of 1.284 million ounces and 34 million pounds, up 4% and down 3%, respectively, from the prior year quarter; attributable gold and copper sales of 1.261 million ounces and 35 million pounds, up 4% and down 5%, respectively, from the prior year quarter; Revenue of $2.0 billion, a decrease of 20% from the prior year quarter; Cash flow from continuing operations of $443 million, a decrease of 23% from the prior year quarter; Average realized gold and copper prices of $1,322 per ounce and $3.10 per pound, down 20% and 13%, respectively, from the prior year quarter.
Our efforts to improve costs and efficiencies are gaining momentum, and we have reduced consolidated spending by $700 million year to date, said Gary Goldberg, President and Chief Executive Officer. Strong third quarter production was driven by our Australia / New Zealand operations. Our Nevada operations are also overcoming first half challenges. We remain focused on delivering value over volume at our existing operations as well as profitable growth at our new ones a great example is Akyem in Ghana where we recently achieved commercial production.
As previously announced, Newmont has maintained its 2013 attributable gold production outlook of 4.8 to 5.1 million ounces and has revised its attributable copper production outlook to 135 to 145 million pounds. Newmont now expects to be at the low end of its previously announced 2013 outlook for gold CAS of $750 and $825 per ounce inclusive of stockpile write-downs. The Company continues to expect copper CAS of $4.05 and $4.40 per pound, respectively, inclusive of stockpile write-downs. Exclusive of stockpile write-downs, the Company continues to expect gold and copper CAS between $675 and $750 per ounce and $2.25 and $2.50 per pound, respectively.
2013 consolidated capital expenditure outlook has been reduced by $200 million to $2.0 to $2.2 billion or to $1.7 to $1.9 billion on an attributable basis. Consolidated sustaining capital outlook has been reduced by $100 million to $1.2 to $1.3 billion, or to $1.0 to $1.1 billion on an attributable basis.
North America AISC for the third quarter was $772 per ounce, down 24% over the prior year quarter. AISC were favorably impacted by a 16% reduction in gold CAS per ounce, attributable to lower royalties, higher by-product credits, and higher production, and a 38% reduction of sustaining capital expenditures per ounce.
Nevada Attributable gold production in Nevada was 468,000 ounces at CAS of $527 per ounce during the third quarter. Gold production increased 2% from the prior year quarter due to higher leach production from Emigrant and Carlin North Area as well as higher grade and throughput at Juniper Mill and Phoenix, partially offset by lower grade and recovery at Mill 5 and lower throughput and recovery at Mill 6 and the Twin Creeks Autoclave. CAS per ounce decreased 20% from the prior year quarter due to higher ounces produced, higher by-product credits, and lower royalties. AISC at Nevada were $722 per ounce, down 29% over the prior year quarter.
The Company is maintaining its 2013 attributable gold production outlook of between 1.7 and 1.8 million ounces at CAS of $600 to $650 per ounce.
La Herradura Attributable gold production at La Herradura in Mexico was 52,000 ounces at CAS of $765 per ounce during the third quarter. Gold production increased 2% from the prior year quarter due to higher production from Noche Buena and Centauro, essentially offset by lower production from Soledad and Dipolos. CAS per ounce increased 26% from the prior year quarter due to higher waste mining. AISC at La Herradura were $1,173 per ounce, up 15% over the prior year quarter due to an increase in gold CAS per ounce.