Newmont quarterly results affected by Peabody plan

Net earnings for the first nine months of 1989 were $42.3 million or 63 cents a share, compared with $81.1 million or $1.20 a share in the first three quarters of 1988.

Last year’s third-quarter results included pretax charges of $28 million for relocation of the company headquarters from New York to Denver and the writeoff of an Australian mining property. Newmont’s 1988 third-quarter results also included an after-tax loss of $43.9 million from discontinued operations, resulting from the sale of Newmont’s remaining interest in Magma Copper.

Results for the first nine months of 1988 included income of $10.8 million or 16 cents a share from discontinued operations and pretax income of $112.8 million, the net of a gain on a securities sale and charges for unusual items.

The 1989 period included an after-tax loss of $3.6 million or 5 cents a share, for the revision on a gain recognized in the fourth quarter of 1988 on a discontinued operation and net after-tax charges of $5 million for costs associated with the initial plan to recapitalize U.S. coal producer Peabody Holding.

Newmont’s 49.97% stake in Peabody earned $7.5 million, compared with $11.7 million in the third quarter of 1988. The 1989 results could be attributed to a summer strike.

Despite lower gold prices, Newmont’s gold interests had $41.1 million in pretax income in the third quarter, compared with $37.8 million in the same period last year.

Those interests include a 90% stake in Newmont Gold, North America’s largest gold producer and 75% of Newmont Australia. Together, they produced 489,200 oz in the third quarter, compared with 311,800 oz at the same time last year.

Due to Newmont’s hedging program, the company received an average of $393(US) per oz, compared with $429 per oz in the third quarter of 1988. — 30 — File: NIBS News in Brief

MDE Explorations has changed its name to Puff Pac Industries Inc. (PPK:VSE) on a share-for-share basis. Transfer agent is Central Guaranty Trust Company.

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