Newmont Mining Corp. said Monday its profit for the fourth quarter fell 67 percent because of increased operating costs and one-time charges. The gold miner also said it expected lower gold sales in 2006. Its shares tumbled more than 5 percent.
For the quarter that ended Dec. 31, Newmont reported net income of $62 million, or 14 cents a share, compared with $190 million, or 42 cents a share, in the fourth quarter of 2004.
Revenue rose to $1.31 billion from $1.2 billion in the same quarter a year ago.
Wayne Murdy, chairman and chief executive, attributed the earnings drop to industrywide cost pressures and accounting items. The latest quarter included write-downs of 15 cents a share and settlement of a civil suit that reduced earnings by 4 cents a share.
Consolidated gold sales totaled 2.4 million ounces at an average realized price of $472 an ounce, up from 2.3 million ounces at an average realized price of $436 an ounce a year ago.
Analysts surveyed by Thomson Financial had predicted earnings excluding one-time items of 36 cents per share, on revenue of $1.4 billion.
Newmont shares fell $3.32, or 5.7 percent, to $54.78 on the New York Stock Exchange. The company’s share price has ranged between $34.90 and $62.72 in the past year.
Net income for 2005 totaled $322 million, compared with $443 million in 2004.
