Newmont (NYSE:NEM) Generates Record Revenue, Punished for Weak Guidance

Newmont Mining Corp. (NYSE:NEM) generated record revenue for the quarter and an increase in profits of 38 percent, yet were punished by the market for their guidance, which revealed production costs will rise and their annual gold production will drop.

On the gold production side, Newmont dropped their estimated production range from 5.3 million to 5.5 million ounces to 5.3 million to 5.4 million ounces.

Net income for the quarter rose to $537 million, or $1.07 a share, increasing from the $388 million, or $0.79 a share posted in the same quarter last year.

Revenue in the quarter soared to $2.6 billion, a gain of 27 percent over last years $2.05 billion.

Newmont raised it estimated 2010 costs applicable to sales from a range of $460 to $480, to a range of $485 and $500 an ounce going forward. That is what hit them the hardest today as shareholders and investors punished the company.

They were trading at $59.83, losing $1.40, or 2.29 percent, as of 1:06 PM EDT.