Newmont reports nearly 80% boost in 2Q adjusted net income

For the full-year 2010, Newmont predicts gold prices will average $1,100 per ounce while copper prices are expected to average $3 per pound.

RENO, NV - 

Newmont reported Wednesday a 79% increase in adjusted net income during the second quarter to $377 million or 77-cents per share.

The company also reported 1.3 million ounces of equity gold production and 80 million pounds of equity copper production during the second quarter, prompting Newmont to maintain its 2010 outlook for production, operating costs and capex.

For the first six months of this year, Newmont reported 2.63 million ounces of equity gold production, up from 2.45 million equity gold ounces reported during the same period of 2009. The company also reported 170 million pounds of equity gold production during the first half of this year, up from 88 million pounds a year ago.

CEO Richard O'Brien said the company is maintaining its 2010 outlook for equity gold production of 5.3 million to 5.5 million ounces. Total equity copper production outlook is being maintained at 330 million to 360 million pounds for this year.

Newmont reported second quarter adjusted net income of $377 million or 77-cents per share, compared to $211 million or 33-cents per share in the second quarter of 2009. For the first six months of this year, Newmont reported an adjusted net income of $786 million or $1.60 per share, compared to adjusted net income of $409 million or 85-cents/sh for the first half of 2009.

The company has increased its exploration forecast by $30 million to a range of $220 million to $245 million this year due to successful drilling at the Leeville/Turf operation in Nevada.

The company maintains its 2010 capital expenditure outlook of $1.4 billion to $1.6 billion with about 30% to be invested in east of the North America and Asia Pacific regions with the remaining 40% allocated to other locations.

Roughly 40% of capex is expected to be expended on major projects initiatives, including further development of the Akyem project in Ghana, the Conga project in Peru, Hope Bay in Canada, and the Nevada project portfolio.

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