Newmont Corp (NYSE:NEM) the world’s largest gold miner, posted a more than a 9X jump in Quarterly profit Tuesday buoyed by higher output mainly from its new Goldcorp assets and a surge in gold prices on a rise in safe-haven asset demand due to the C-19 coronavirus chaos.
Net income attributable to shareholders rose to $822-M or 1.02/share in Q-1, compared with $87-M, or 0.16/share, in the yr-ago frame, the US-based company said.
The nearly 100-yr-old miner said average realized price for gold in Q-1 was 1,591 from 1,300 oz last year, while production rose 20% to 1.5-M ozs primarily due to new production from Goldcorp mines that it acquired in Y 2019.
The rise 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% YTD, as investors shifted their investments to the precious Yellow metal after risk sentiment took a beating due to uncertainties in a C-19 coronavirus-hit global economy.
Attributable gold production rose to 1.5-M ozs, from last year’s 1.23-M.
Excluding items, Newmont posted a profit of 0.40/share, missing analysts’ estimate of 0.42/share, according to Refinitiv IBES.
All-in sustaining costs rose around 14% to $1,030 oz from the yr-ago frame.
NEM finished at 62.74, +1.75 Monday in NY, at the Top of its 52 wk trading range.
HeffX-LTN’s overall technical outlook for NEM is Very Bullish across the board, with Strong Support at 60.77 and lite Resistance at 69.13.
Have a healthy day, Keep the Faith!