Gold mining giant Newmont Mining Corporation (NEM - Free Report) has declared its preliminary gold and copper production for the first quarter of 2013. The company has also reaffirmed its outlook for 2013.
Newmont’s attributable gold production for first-quarter 2013 amounted to 1.165 million ounces compared with 1.307 million ounces registered in first- quarter 2012 and 1.251 million ounces in fourth-quarter 2012. Attributable copper production for first-quarter 2013 was 38 million pounds compared with 35 million pounds in first-quarter 2012 and fourth-quarter 2012, respectively.
Production for the first quarter was impacted by lower mill availability due to persisting cold weather in Nevada and lower-than-planned ore grades at Twin Creeks and Carlin in Nevada.
Attributable gold sales were 1.142 million ounces for first-quarter 2013 compared with 1.290 million ounces in first-quarter 2012 and 1.230 million ounces in fourth-quarter 2012. Attributable copper sales were 31 million pounds for first-quarter 2013 compared with 37 million pounds for first-quarter 2012 and 43 million pounds for fourth-quarter 2012.
Sales for the first quarter were negatively impacted by shipping delays reflecting lower concentrate sales for the quarter.
Average realized gold and copper price for the quarter was approximately $1,631 per ounce and $3.13 per pound, respectively. Average gold price of the London PM Fix for the first quarter amounted to $1,632 per ounce.
Newmont, which is among the prominent gold-mining companies along with Agnico-Eagle Mines Ltd. (AEM - Free Report) , Goldcorp Inc. (GG - Free Report) and Kinross Gold Corporation (KGC - Free Report) , also backed its outlook for 2013 and anticipates attributable gold and copper production to be roughly 4.8 million to 5.1 million ounces and 150 million to 170 million pounds, respectively.
Production is anticipated to increase in the second half of 2013 due to greater mill throughput in Nevada and the ramp up of production at Akyem in Ghana. However, adverse weather conditions and shipping delays that affected first quarter productions and sales are not expected to impact results in the second half of 2013.
Newmont is focused on reviewing the potential opportunities to improve its cash flow and preserve financial flexibility under the dominant volatile metal price environment. It is slated to release its first-quarter 2013 results after the market closes on Apr 29.
Newmont currently carries a short-term Zacks Rank #3 (Hold).