Newmont Tops Profit Estimates on Higher Gold Prices
Newmont, the world's largest gold miner, exceeded second-quarter profit expectations due to higher bullion prices. The company's quarterly average realized price for gold was $4,414 per ounce, a significant increase from last year's average of $3,320 per ounce.
The rise in gold prices, driven by safe-haven demand and hopes of U.S. interest rate cuts, outweighed the impact of lower output. Newmont's quarterly gold production fell to 1.29 million ounces, down from 1.48 million ounces a year earlier due to lower grades at various mines.
CEO Natascha Viljoen stated that the expansion of Red Chris mine in British Columbia will depend on whether the project fits within its capital allocation framework and delivers value accretion. The company expects third-quarter gold production to be steady, with unit costs increasing mainly due to higher sustaining capital spend.