Newmont Profit Jumps on High Gold Pricesadmin
Newmont Mining, benefiting from high gold prices that more than compensated for lower production, yesterday reported a 57% jump in Q3 profit. Net earnings were $198 million, or $0.44/share, compared with $126 million, or $0.28/share, a year earlier. The EPS figure bested analyst expectations of $0.43, and the shares gained over 3% on the news to reach a high of $46.69. Revenue declined to $1.102 billion from $1.145 billion. In July, Newmont issued a warning that sales were likely to be lower in Q3 than in Q4 because of lost business in Uzbekistan, lower output in Ghana and Peru, and higher energy and labor costs. Though gold sales fell to 1.698 million ounces from 2.122 million a year earlier, the company’s average realized gold price rose to $615 per ounce in Q3 from $435 a year earlier.