(Reuters) -Newmont beat analysts’ estimate for fourth-quarter profit on Thursday, as the world’s biggest gold miner benefited from a rally in bullion prices and higher production.
Average price of gold has been rising over the past few quarters and hit multiple all-time highs during the October to December period, as uncertainties surrounding the U.S. presidential election and the Middle East tensions fueled demand for the safe-haven asset.
Newmont’s quarterly gold production increased 9.2% over the year earlier to 1.90 million ounces, while price was up 31.9% at $2,643 per ounce.
All-in-sustaining-costs for gold, an industry metric reflecting total expenses, were down 1.5% at $1,463 per ounce, also aiding the company’s earnings.
Newmont now expects gold production of about 5.9 million ounces in the current year, above Wall Street estimate of 5.87 million ounces.
After buying Australia-based Newcrest for $17.14 billion, Newmont announced in February 2024 that it would divest non-core assets and trim its workforce to cut debt, which was at $5.31 billion as of December 31.
Late last year, the company said it would sell its Eleonore mine in Canada to UK-based miner Dhilmar Ltd for $795 million and sell its Musselwhite Gold Mine in Ontario to Orla Mining in a deal valued at $850 million.
Last month, Gold miner Discovery Silver said it would acquire Newmont’s stake in Porcupine Operations in Ontario, Canada, for $425 million.
On an adjusted basis, Newmont earned $1.40 per share for the quarter ended December 31, compared with analysts’ average estimate of $1.08 per share, according to data compiled by LSEG.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Shilpi Majumdar)
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