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Thursday, 19th January 2006 (4456 views)

The world's largest gold miner, Newmont Mining, has announced it expects gold sales to fall in 2006.

The US-based behemoth expects consolidated gold sales to reach 6.25 million this year, down from 6.5 million in 2005.

More bad news was to come as the company admitted gold equity sales would decline three per cent in 2007.

Newmont blamed the fall on an expected drop in gold drawn from its Peruvian Yanacocha mine, as well as asset sales and mine closures.

But the gold miner remained upbeat and insisted that sales would increase in 2007 following the completion of several projects in Nevada and Ghana.

Newmont chairman and chief executive Wayne Murdy, said: "With approval to move forward with the Nevada power plant and the development of our new mines in Nevada and Ghana, we are well positioned to leverage gold price exposure for our shareholders.

"And with the strongest balance sheet in the industry, we intend to enhance our growth profile through an aggressive programme of project development initiatives and strategic acquisitions."

Newmont has enjoyed a strong run on the stock market with shares up a fifth this year alone.

 

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