May 5, 2020 / 11:39 AM / a month ago

Gold miner Newmont's profit surges on higher output, bullion prices

(Reuters) - Newmont Corp, the world’s biggest gold miner, posted a more than nine-fold jump in quarterly profit on Tuesday buoyed by higher output mainly from its new Goldcorp assets and a surge in bullion prices on a rise in safe-haven asset demand due to the coronavirus outbreak.

Net income attributable to shareholders rose to $822 million or $1.02 per share in the first-quarter ended March 31, compared with $87 million, or 16 cents per share, in the year-ago period, the U.S.-based company said.

The nearly 100-year-old miner said average realized price for gold in the first quarter was $1,591 per ounce from $1,300 an ounce last year, while production rose 20% to 1.5 million ounce primarily due to new production from Goldcorp mines that it acquired last year.

The jump in profit was due to the gains on the sale of KCGM, Continental Gold and Red Lake and higher production from the acquired Goldcorp assets and higher average realized gold prices, Newmont said.

Gold prices have risen around 12% this year, as investors shifted their investments to the metal after risk sentiment took a beating due to uncertainties in a coronavirus-hit global economy.

Attributable gold production rose to 1.5 million ounces, from last year’s 1.23 million ounces.

Excluding items, Newmont posted a profit of 40 cents per share, missing analysts’ estimate of 42 cents per share, according to Refinitiv IBES.

All-in sustaining costs rose around 14% to $1,030 per ounce from the year-ago period.

Reporting by Arunima Kumar in Bengaluru; Editing by Rashmi Aich

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