Newmont Mining posts net income of $523m in second quarter 2011

Newmont Mining Corporation has announced that its net income from continuing operations increased to $523 million in 2011 second quarter compared to $382 million in the second quarter of 2010.

The Denver-based mining company said the income increment was by 37% as compared to what it recorded in 2010, according to the company’s 2011 second quarter results released today July 29, 2011.

Newmont says its second quarter 2011 attributable net income from continuing operations increased 37% to $523 million ($1.06 per share) compared to $382 million ($0.78 per share) in the second quarter of 2010.

The company posted a consolidated revenue of $2.4 billion, an increase of 11% from the prior year quarter.

Adjusted net income increased 18% to $445 million ($0.90 per share) from $377 million ($0.77 per share) in the second quarter of 2010, it said.

Giving the highlights of the results during the second quarter period, Newmont indicates that average realized gold and copper price of $1,501 per ounce and $3.78 per pound were up by 25% and 62% respectively from the prior year quarter.

Operating cash flow of the company was $414 million, 45% lower than the prior year quarter. In the first quarter of 2011, it recorded high operating cash flow of $989 million.

This was due to a $300 million it paid as taxes in Indonesia related to the 2010 earnings.

“With our average realized gold price increasing by 25% since the second quarter of last year, our dividend has doubled, highlighting our commitment to delivering value to our shareholders,” said Richard O’Brien, President and Chief Executive Officer of Newmont.

The company said it is still maintaining its 2011 outlook for production, costs applicable to sales (CAS) and capital expenditures.

Newmont has two gold mining operations in Ghana – located in Ahafo and Akyem.

By Ekow Quandzie