Leading gold producer Newmont Mining Corp. (NEM) posted an unexpected net loss for the second quarter after taking a US$1.77 billion writedown on Australian mines and stockpile values. The writedown was made following a decline in bullion prices.

Newmonth Mining Corporation, a miner located in Greenwood Village, Colorado, is the second-largest producer of gold with active mines in Indonesia, Nevada, Australia, Peru, Ghana and New Zealand.

The company announced on Friday that second quarter results fell short of the US$ 279 million income a year earlier, showing a US $2.02 billion net loss or a US$4.06 decrease per share. Newmont reported that it was listing impairment charges on its Tanami and Boddington mines in Australia and writing down stockpile and ore values. It also said that it cut costs by US$362 million from the first half of 2012 to 2013.

Gary Goldberg, Newmonth Chief Executive Officer, commented in a statement, saying, "We are also on track to reduce our corporate work force by more than one third." 

Gold mining companies have taken a total of around $15 billion worth of writedowns during the past two months, following the steepest quarterly decline in more than 90 years. Newcrest Mining Ltd. (NCM) announced June 7 that it may take a writedown of about US$5.6 billion. Goldcorp Inc., the largest producer by market value, announced Thursday that it take a charge of asset value of US1.96 billion.