The story of equities for now is going to continue to be guidance, as quarterly reports like the solid one turned in by Newmont Mining (NYSE:NEM) are no longer driving investor interest. The rearview mirror is no longer being used as a guide by investors.
Newmont Mining Corp., citing sharply higher copper and gold prices, reported Thursday a 46% jump in its fourth-quarter profit, topping Wall Street’s expectations.
But the world’s second-largest gold producer also lowered again its 2011 production forecast and warned of rising costs, which took the shine off its latest results and sent its shares tumbling nearly 4% to $56.82 at the open.
Denver-based Newmont (NEM) said its fourth-quarter net income attributable to stockholders rose to $812 million, or $1.61 a share, from $558 million, or $1.13 a share, in the year-ago period.
Adjusted to exclude one-time items, the company’s quarterly earnings rose to $574 million, or $1.16 a share, from $561 million, or $1.14 a share.
The per-share results topped the $1.14 analysts surveyed by FactSet Research had been looking for.
Consolidation in the gold mining sector is sure to pick up as production estimates continue to be lowered and organic growth not able to keep up with demand.
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