Newmont beats fourth-quarter profit estimate on higher gold production, prices
Newmont beat analysts' estimate for fourth-quarter profit on Thursday, as the world's biggest gold miner benefited from a rally in bullion prices and higher production.
Average price of gold has been rising over the past few quarters and hit multiple all-time highs during the October to December period, as uncertainties surrounding the US Presidential election and the Middle East tensions fueled demand for the safe-haven asset.
Newmont's quarterly gold production increased 9.2% over the year earlier to 1.90-million ounces, while price was up 31.9% at $2 643 per ounce.
All-in sustaining costs for gold, an industry metric reflecting total expenses, were down 1.5% at $1 463 per ounce, also aiding the company's earnings.
Newmont now expects gold production of about 5.9-million ounces in the current year, above Wall Street estimate of 5.87-million ounces.
After buying Australia-based Newcrest for $17.14-billion, Newmont announced in February 2024 that it would divest non-core assets and trim its workforce to cut debt, which was at $5.31-billion as of December 31.
Late last year, the company said it would sell its Eleonore mine in Canada to UK-based miner Dhilmar for $795-million and sell its Musselwhite Gold Mine in Ontario to Orla Mining in a deal valued at $850-million.
Last month, Gold miner Discovery Silver said it would acquire Newmont's stake in Porcupine Operations in Ontario, Canada, for $425-million.
On an adjusted basis, Newmont earned $1.40 per share for the quarter ended December 31, compared with analysts' average estimate of $1.08 per share, according to data compiled by LSEG.
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