Gold production for Newmont Mining Corp. (NYSE:NEM) rose in 2010, according to the company, adding their operating margins related to gold also rose.
Chief Executive Officer Richard O'Brien said, "Our gold operating margin also increased from $566 per ounce in 2009 to $737 per ounce in 2010 ... highlighting our increasingly attractive gold price leverage in a rising metal price environment."
The amount of gold production surpassed their previous estimate in the early part of November of 5.3 million ounces, coming in at 5.4 million ounces.
Copper production for Newmont really soared, increasing by 45 percent over production levels of 2009, growing to 327 million pounds.
In their latest quarter, Newmont produced 1.4 million ounces of gold, selling 1.3 million ounces at an average price of $1,368. They sold 57 million tons of copper in the fourth quarter for $4.52 each.
Newmont closed Thursday at $55.71, gaining $0.25, or 0.45 percent.
Showing posts with label Richard O'Brien. Show all posts
Showing posts with label Richard O'Brien. Show all posts
Friday, January 21, 2011
Monday, November 22, 2010
Newmont's (NYSE:NEM) Boddington Mine Disappointing So Far
Even though Newmont Mining's (NYSE:NEM) CEO Richard O'Brien recently told investors and analysts it's far too early to start worrying about their Boddington Mine project, early results have been extremely disappointing for this part of the startup stage.
O'Brien reminded those attending the Denver Gold Forum that the project is spread over a 20-year period, and they're just getting going on it, as production launched in the fourth quarter of 2009.
But there is reason to be concerned, as the quality of the ore is much less than is usually produced at this stage of an operation, as normally it's of high quality and gradually works down to lower quality ore.
Other challenges have been a stronger Australian dollar and increasing mining costs. Every quarter since production began unit costs have risen.
With Newmont counting on Boddington in the short term, this is definitely something they hope to turn around soon; especially the costs, which is something they do have control over.
O'Brien reminded those attending the Denver Gold Forum that the project is spread over a 20-year period, and they're just getting going on it, as production launched in the fourth quarter of 2009.
But there is reason to be concerned, as the quality of the ore is much less than is usually produced at this stage of an operation, as normally it's of high quality and gradually works down to lower quality ore.
Other challenges have been a stronger Australian dollar and increasing mining costs. Every quarter since production began unit costs have risen.
With Newmont counting on Boddington in the short term, this is definitely something they hope to turn around soon; especially the costs, which is something they do have control over.
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