Gold producer Newmont Mining Corp. today reported a 67 percent slide in fourth-quarter profit, as higher operating costs and one-time charges offset revenue growth.
Net income slid to $62 million, or 14 cents per share, from $190 million, or 42 cents per share, in the year-ago quarter. Income from continuing operations came to $72 million, or 16 cents per share, down from $150 million, or 34 cents per share, in the previous fourth quarter.
Chairman and Chief Executive Wayne W. Murdy said the lower earnings resulted from industrywide cost pressures and several accounting items. The latest quarter included write-downs of 6 cents per share on long-lived assets and 9 cents per share on goodwill, as well as a settlement of a civil suit that lowered earnings by 4 cents per share.
Revenue rose to $1.31 billion from $1.2 billion in the prior-year period. The company posted an average realized gold price of $472 per ounce versus $426 a year ago. At the same time, sales costs per ounce increased to $230 from $211.
Analysts polled by Thomson Financial predicted earnings excluding one-time items of 36 cents per share on $1.4 billion in revenue.
Net income for the full year fell to $322 million, or 72 cents per share, from $443 million, or $1 per share, in 2004. Revenue was essentially flat year over year at $4.41 billion.
At year end, Newmont had proven and probable gold reserves of 93.2 million equity ounces.
Shares of the Denver-based company fell $1.10 to $57 in pre-market trading.
