Newmont Mining Corp.’s profit fell sharply in the second quarter on lower metals prices, even as production and sales continued to increase.
Citing the effect of favorable oil prices and currency exchange rates as well as portfolio changes, such as its acquisition of AngloGold Ashanti Ltd.’s Cripple Creek & Victor mine, Greenwood Village-based Newmont raised its production guidance.
The miner raised its guidance for gold production for the year, as well as for what it expects to achieve by 2017. For 2015, Newmont expects gold production to reach between 4.7 million and 5.1 million ounces.
It projects copper production of 140,000 to 180,000 metric tons in 2015, up from 130,000 to 160,000 metric tons, and affirmed its previous guidance that output should then level out to between 115,000 and 135,000 metric tons in 2016 and 2017.
Shares, down 2 percent this year, edged down 0.76 percent to $18.38 in late trading.
For the period ended June 30, Newmont said the average realized gold and copper price fell to $1,179 a troy ounce and $2.41 a pound, respectively, compared with $1,283 an ounce and $3.01 a pound a year earlier.
Gold production, meanwhile, rose to 1.24 million ounces compared with 1.22 million ounces a year earlier, while copper production more than doubled to 41,000 metric tons from 24,000 metric tons a year earlier.
