Global gold and copper miner Newmont posted a sharp rise in net earnings for the third quarter on the back of higher output and surging bullion prices.

The Denver-based company’s net income was $922-million, or $0.80 a share, which is a nearly sixfold increase from $158-million reported in the same period last year.

The group’s adjusted net income was $936-million, or $0.81 a share, a 12% increase from the prior quarter and a 230% rise from the third quarter of 2023.

The higher income was attributed to a higher average realised gold price and higher sales volumes, partially offset by higher unit costs of production.

“In the third quarter, Newmont delivered 2.1-million gold equivalent ounces and generated $760-million in free cash flow from our world-class portfolio,” reported president and CEO Tom Palmer.

Newmont’s attributable gold production increased to 1.67-million ounces from the prior quarter owing to higher output at Cerro Negro, Nicaragua, from a full quarter of resumed operations following the completion of the investigation into the fatalities of two workers in the second quarter.

Third-quarter production also benefited from higher throughput at Brucejack, in Canada, higher mill utilisation at Ahafo, in Ghana, and improved production at Yanacocha, in Peru, primarily driven by the benefits of injection leaching.

Newmont says its fourth-quarter production is expected to be the highest of the year driven primarily by improved grades at Peñasquito, in Mexico, and Tanami, in Australia, improved throughput at Lihir, in Papua New Guinea, after the expected completion of the planned autoclave maintenance, and sequential improvements delivered from the non-managed joint venture operation at Nevada Gold Mines, in the US.

Gold all-in sustaining costs increased 3% to $1 611/oz, compared with the prior quarter.

Palmer said that Newmont continued to make progress on its noncore divestment programme, pointing to the sale of its Akyem mine, in Ghana, to Chinese mining giant Zijin Mining for up to $1-billion in cash, and an agreement to let go of two Australian assets for up to $475-million. 

Other assets that remain on the chopping block include the Éléonore, Musselwhite and Porcupine mines and Coffee project, in Canada, as well as the CC&V mine, in the US.

“Our divestiture progress and strong free cash flow generation have positioned us to continue reducing debt and repurchasing shares, creating significant and lasting value for our shareholders,” said Palmer.

The precious metals market has surged this year, reaching successive all-time highs amid a powerful rally. This momentum has intensified in recent months as the Fed shifted towards cutting interest rates. Additionally, the escalating conflict in the Middle East and the tightening US election landscape are further fueling demand for safe-haven assets.