Newmont earnings drop 59 percent

Denver-based Newmont Mining Corp. (NYSE: NEM), the world's largest gold miner, reported Wednesday 2004 second quarter earnings of $37.5 million, or 8 cents per share, a 59 percent drop from $90.8 million, or 22 cents per share, it reported during the second quarter of 2003.

Revenues for the quarter were $1 billion, up 37 percent, from $736.8 million reported during the second quarter 2003.

"The decline in second quarter net income was the result of planned mine closures and divestitures, processing lower grade material and non-cash asset impairment charges," said Wayne W. Murdy, Newmont's chairman and CEO, in a statement.

"Despite lower ounces sold, cash flow generation from operations for the quarter was $243 million. For the full year, we expect gold sales of in excess of 7 million ounces, with the second half's sales weighted towards the fourth quarter. Our development projects are proceeding on schedule, and our exploration results have exceeded expectations, particularly at our two projects in Ghana. We are optimistic about our ability, similar to 2003, to grow reserves from exploration in 2004," he said.