Newmont profit beats estimates on bullion boost

COLORADO: Newmont Corp’s profit for the second quarter topped Wall Street’s estimates on Thursday, as the top gold producer benefited from slightly higher prices of the precious metal.

Bullion averaged about $1,814 in the second quarter, a marginal increase from the first, as a weak dollar and safe-haven buying due to COVID-19 pandemic-related uncertainty underpinned prices.

Newmont said its average realized gold price jumped 4.1 per cent to $1,823 per ounce in the quarter.

Its gold production fell marginally to 1.45 million ounces sequentially, but was up 15 per cent from the last year.

The Denver, Colorado-based miner also said its all-in sustaining costs (AISC) for the quarter, an industry metric that reflects total costs associated with production, fell to $1,035 per ounce from $1,039 per ounce in the Jan-march period.

Newmont’s shares, which are up 0.8 per cent so far this year, rose about 1 per cent to $60.92 in premarket trade.

The company’s adjusted profit rose to $ 670 million, or 83 cents per share, in the quarter ending June 30, from $ 594 million, or 74 cents per share, in the previous quarter.

Analysts on an average expected a profit of 78 cents per share, according to Refinitiv IBES data.

Rival Barrick Gold Corp is scheduled to report its quarterly earnings on Aug. 9.