Newmont Corporation (NEM.N), the world’s largest gold miner, reported better-than-expected first-quarter profit and production on Thursday, as it benefited from strong performance at sites acquired following its acquisition of Australia’s Newcrest in November 2022.
Quarterly attributable gold production rose to 1.7 million ounces, up from 1.3 million ounces a year earlier, and exceeding the average analyst estimate of 1.61 million ounces. Sales in the quarter were $4.02 billion, compared to $2.68 billion a year ago.
On an adjusted basis, Newmont reported net income of 55 cents per share, compared to the average analyst estimate of 36 cents per share, according to LSEG data. Shares of the company were up 6.6% in morning trade.
“We view this release as positive to the shares given the EPS beat was mainly driven by better operating performance,” Scotiabank analysts wrote in a note.
The company saw higher average gold prices during the quarter, with the precious metal averaging $2,090 per ounce, up from $1,906 a year earlier. However, all-in-sustaining cost for gold, an industry metric that reflects total expenses associated with production, rose to $1,439 per ounce from $1,376 a year earlier.
Newmont maintained its 2024 forecasts, with production of 6.9 million ounces of gold at an AISC of $1,400.
The company did note that operations at its Cerro Negro mine in Argentina have been suspended as a full investigation is being conducted after the death of two members of the workforce on April 9.
Overall, Newmont’s strong first-quarter performance, driven by the integration of Newcrest’s assets, has been well received by the market, with the stock price reflecting the company’s operational success.