US Newmont Mining reports 514m profit in Q1 

(MENAFN) US-based miner Newmont Mining Corp.'s reported USD490 million net profit in the first quarter, down from USD514 million a year earlier, over higher costs, AP reported.

While some costs dropped, most rose, including exploration, research and development, adding that the costs of gold mining and milling in parts of Asia and the Pacific rose because it was processing lower-quality ore.

However, higher gold prices lifted Newmont's profit margin. Gold prices have fallen from highs reached late last year, but gold operating profit margin rose 29 percent for the quarter, the company said.

Newmont's gold output declined two percent to 1.3 million ounces while copper production fell 35 percent to 35 million pounds.

CEO Richard O'Brien said that the company could add about 90 million ounces of gold to its reserves over the next eight years.

The company kept its 2012 production outlook at 5-5.2 million ounces of gold and 150-170 million pounds of copper.