TORONTO (miningweekly.com) – US gold miner Newmont Mining has reported a second-quarter loss of $2-billion after a sharp drop in prices and an impairment charge related to two Australian mines.

Denver-based Newmont late on Thursday released its financial results for the second quarter ended June 30, reporting a $1.8-billion charge for impairments of property, plant and mine development and other long-term assets at Boddington, in Western Australia, and Tanami in the country’s Northern Territory.

This resulted in a net loss attributable to shareholders of $4.06 a share, compared with a net profit of $279-million, or $0.56, a share.

With one-time items removed, Newmont posted a surprise-adjusted loss of $0.10 a share, compared with analyst expectations of earning $0.42 a share during the quarter.

Newmont, which pays a quarterly gold-price-linked dividend, also on Thursday declared a payout of $0.25 a share, down from $0.35 in the previous quarter, as the average realised gold price declined 13% to $1 386/oz.

Gold prices have fallen sharply this year, hitting a near three-year low of about $1 180/oz in late June, prompting gold producers to slash capital spending, exploration expenses and other costs.

Vancouver-based Goldcorp on Thursday also booked an impairment charge, writing down the value of its assets by $1.96-billion on the back of a sharp decline in the gold price. Last month, Australia’s Newcrest, announced an impairment of between A$5-billion and A$6-billion – said to be the biggest one-time charge in gold-mining history – while South Africa’s Harmony Gold also said it expected an asset write-down of between $260-million and $280-million.

Newmont said it was implementing cost-cutting strategies across its operations and, to date, it has saved about $362-million in year-to-date spending compared with the first half of 2012. This also entailed cutting jobs in Australia.

Attributable gold production was down 1% at 1.17-million ounces, while sales rose 6% to 1.2-million ounces. Copper output fell 11% to 34-million pounds, and sales rose 23% to 37-million pounds.

The company’s total revenues were down 11% at $2-billion.

All-in sustaining costs were $1 136/oz in the quarter, and Newmont said it remained on track for full-year all-in costs of $1 100/oz to $1 200/oz.

Newmont’s shares on the NYSE on Friday morning traded as low as $28.52 apiece, but clawed back to about $29.56 a share by noon.