Newmont Mining Corp.'s (NEM) third-quarter profit more than
doubled, blowing past analysts' estimates, amid costs costs and
record revenue due to higher metals prices.
The industry has seen gold prices rally - the metal broke
through the benchmark $1,000 level in September for the first time
since February and reached record levels. Gold and copper prices
both jumped during the quarter. Still, in the face of the economic
downturn, Newmont has cut costs. On Thursday, President and Chief
Executive Richard O'Brien said cost cuts led to a 13% improvement
in gold cost of sales per ounce from the year-ago quarter.
The company also forecast that its equity gold sales for 2009
would be at the low end of its previously given range because of
the extended start-up of a new project. Newmont also forecast
equity gold sales would improve 5% to 10% in 2010 because of
increased production.
Newmont, the world's second-biggest gold miner after Barrick
Gold Corp. (ABX), reported third-quarter earnings of $388 million,
or 79 cents a share, up from $191 million, or 42 cents, a year
earlier. Revenue jumped 49% to a record $2.05 billion.
Analysts polled by Thomson Reuters had expected earnings of 55
cents on $1.72 billion in sales.
The company saw net sales of gold jump 29%, and copper sales
more than quadrupled.
Shares closed at $41.50 Wednesday and were inactive
premarket.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com