Gold miner Newmont posts 641% jump in profit

Company benefited from higher production, gold prices

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Newmont Corp.’s quarterly profit spiked 641 percent from a year ago as asset sales, higher production and surging gold prices boosted the company’s bottom line.

The Greenwood Village, Colorado-based minerals explorer earned $837 million, or $1.04 per share, as revenue rose 43 percent year-over-year to $2.58 billion. Adjusted earnings, excluding asset sales and gold-price fluctuations, were 40 cents a share, missing the 43 cents that analysts surveyed by Refinitiv were expecting.

TickerSecurityLastChangeChange %
NEMNEWMONT GOLDCORP CORPORATION61.42-0.02-0.03%

“Our robust balance sheet provides us with significant financial flexibility to continue allocating capital where it is needed most during this time of uncertainty, while maintaining our industry-leading returns to shareholders,” Newmont CEO Tom Palmer said in a statement.

Newmont produced 1.5 million ounces of gold during the first quarter, up 20 percent year-over-year, at an all-in cost of $1,030 an ounce.

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Following the oubreak of COVID-19, Newmont has taken a number of steps to ensure the safety of its employees, including the elimination of non-essential travel, signiificantly reducing the number of workers on-site and enhancing screening prior to arrival on site.

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On March 23, Newmont withdrew its 2020 guidance because some production could be delayed until 2021 due to uncertainty caused by the pandemic. Newmont said that as of May 4, 90 percent of planned production for 2020 was in operation.

Newmont was up 44 percent this year through Monday, making it the top performer among S&P 500 companies.