Newmont Surpasses Profit Estimates on Higher Gold Prices

Newmont, the world's largest gold miner, exceeded second-quarter profit estimates despite lower output due to higher gold prices. The company reported an adjusted profit of US$2.10 per share for the quarter ended June 30, beating analysts' average estimate of US$1.99.

The rally in bullion prices averaged US$4,506.41 per ounce in the second quarter, up about 37% from a year earlier. Newmont's quarterly average realized price for gold was at US$4,414 per ounce, compared to US$3,320 per ounce a year ago.

However, quarterly gold production fell to 1.29 million ounces, down from 1.48 million ounces in the same period last year. The decline was attributed to lower output at several mines due to seismic events and planned mine sequencing.

Newmont's CEO Natascha Viljoen said that the company has received all critical approvals for the expansion of its Red Chris mine in British Columbia, but will only proceed if it fits within their capital allocation framework and delivers value accretion. The company expects third-quarter gold production to be broadly in line with second-quarter output.