Newmont Mining Issues Production Guidance - Quick Facts

(RTTNews) - Newmont Mining Corp. (NEM) announced its attributable gold production is expected to increase from between 4.7 and 5.0 million ounces in 2016 to between 4.9 and 5.4 million ounces in 2017, and remain stable at between 4.5 and 5.0 million ounces through 2020. Attributable copper production is expected to be between 40,000 and 60,000 tonnes in 2016 and between 40,000 and 65,000 tonnes in 2017 and 2018, with stable production expected at Phoenix Copper Leach and Boddington.

Newmont expects 2016 capital to be between $1.1 and $1.3 billion including between $650 and $700 million of sustaining capital. Sustaining capital is expected to increase to between $800 and $900 million in 2017 to cover equipment rebuilds, water treatment and tailings storage facilities.

Newmont expects approximately $260 to $280 million of interest expense in 2016. Year-to-date, Newmont has reduced debt by more than $600 million in 2016. The company remains on track to repay $800 million to $1.3 billion of debt between 2016 and 2018, targeting the highest rates and nearest-term maturities first.

For the second-quarter, reported GAAP net income attributable to shareholders from continuing operations was $50 million, or $0.09 per share, compared to $63 million, or $0.13 per share in the prior year quarter. The company reported adjusted net income of $231 million, or $0.44 per basic share, compared to $131 million or $0.26 per share in the prior year quarter.

For the second-quarter, revenue totaled $2.0 billion, in line with $1.9 billion in the second quarter of 2015 as higher gold volumes and pricing offset lower copper volumes and pricing. Attributable production totaled 1.3 million ounces, compared to 1.2 million ounces in the second quarter of 2015. Attributable copper production totaled 38,000 tonnes compared to 42,000 tonnes in the prior year period due to slightly lower grade and throughput at Batu Hijau.

Capital expenditures for the second quarter were $294 million, including $155 million of sustaining capital, compared to $322 million in the prior year quarter, including $170 million sustaining capital. Sustaining capital for the quarter declined slightly due to timing of spend.