By Nathalie Tadena
Newmont Mining Corp. (NEM) swung to a fourth-quarter profit as a large write-down weighed on the gold-mining company's year-ago results.
Shares were up 2.3% to $41.50 after hours as adjusted earnings topped analyst expectations.
Newmont, the world's second-biggest gold producer after Barrick Gold Corp. (ABX, ABX.T), had posted weaker bottom-line results in recent quarters, hurt by lower production and higher costs, as well as write-downs and other one-time charges.
The latest period included a $58 million write-down of property, plant and mine development, compared with a $2.08 billion write-down a year earlier.
The company backed its full-year gold and copper production targets. Gold production this year is expected to remain roughly flat, while copper production is expected to grow from last year.
The company, which serves as the project manager for the troubled $5 billion Minas Conga copper-and-gold project in northern Peru, is up against antimining activists who are demanding the government shut down the project, saying it threatens water supplies.
Newmont reported a fourth-quarter profit $673 million, compared with a year-earlier loss of $1.03 billion. Excluding write-downs and other adjustments, per-share earnings fell to $1.11 from $1.14. Revenue slipped 10% to $2.48 billion.
Analysts polled by Thomson Reuters had expected earnings of 97 cents a share and revenue of $2.67 billion.
Attributable gold production slipped 1.3% to 1.3 million ounces, while attributable copper output slipped 22% to 35 million pounds. The average realized price for gold was $1,700 an ounce, while the average realized price for copper was $3.22 a pound.
The stock is off 14% over the past three months.
Write to Nathalie Tadena at [email protected]
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