Gold miner Newmont’s quarterly profit beats estimates on higher prices
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Newmont beat Wall Street expectations for first-quarter profit on Thursday, as the world’s largest gold miner benefited from higher prices of the yellow metal.
Average prices of gold, considered as a safe-haven asset, rose 7.8 per cent and peaked over the $2,000-mark during the reported quarter on fears over the stability of the financial system after a banking crisis and a potential recession.
Newmont’s average realised gold prices stood at $1,906 per ounce, higher than $1,892 per ounce a year earlier.
Gold’s all-in sustaining costs (AISC), a key industry metric that reflects total expenses associated with production, rose to $1,376 per ounce from $1,156 per ounce.
Denver, Colorado-based Newmont, however, said attributable gold production for the first quarter fell to 1.27 million ounces from 1.34 million ounces a year earlier.
On an adjusted basis, the company posted a net income of 40 cents per share for the quarter ended March 31, compared with analysts’ average estimate of 33 cents per share, according to Refinitiv data.
Reuters – Ankit Kumar