Newmont Corp quarterly profit more than doubles as gold prices rise

Newmont Corp said on Thursday its quarterly adjusted profit more than doubled, as the world’s largest gold miner benefited from a rise in bullion prices after investors sought refuge in safe-haven assets due to the Covid-19 pandemic.

Gold prices touched record highs during the quarter as a slowdown in economic activity and surging coronavirus cases sent investors to the precious metal, long seen as a hedge against inflation and currency debasement.

The miner said its average realized gold price jumped 30% to $1,913 per ounce in the third quarter, while attributable gold production fell 6% to 1.54-million ounces.

Excluding items, the Colorado-based company earned 86 cents per share in the quarter, up from 36 cents per share a year ago.

Net income from continuing operations fell to $611-million, or 76 cents per share, from $2.3-billion, or $2.71 per share, in the year-ago quarter that included a $2.4-billion gain on the formation of Nevada Gold Mines.

Third-quarter revenue of $3.17-billion missed an estimate of $3.29-billion, according to Refinitiv IBES data, while non-GAAP earnings per share of 87 cents beat an average of 85 cents.

Newmont on Wednesday increased its quarterly dividend 60% to 40 cents per share.