Newmont's (NYSE:NEM) Boddington Mine Disappointing So Far

Even though Newmont Mining's (NYSE:NEM) CEO Richard O'Brien recently told investors and analysts it's far too early to start worrying about their Boddington Mine project, early results have been extremely disappointing for this part of the startup stage.

O'Brien reminded those attending the Denver Gold Forum that the project is spread over a 20-year period, and they're just getting going on it, as production launched in the fourth quarter of 2009.

But there is reason to be concerned, as the quality of the ore is much less than is usually produced at this stage of an operation, as normally it's of high quality and gradually works down to lower quality ore.

Other challenges have been a stronger Australian dollar and increasing mining costs. Every quarter since production began unit costs have risen.

With Newmont counting on Boddington in the short term, this is definitely something they hope to turn around soon; especially the costs, which is something they do have control over.