Newmont (NYSE:NEM) beat analysts’ third-quarter profit estimates on Thursday, as elevated gold prices and a recovery in copper production at its Cadia mine in Australia boosted earnings.
Gold prices averaged US$4,204.59 ($5,992.10) per ounce during the quarter, up about 17.6% from a year earlier, as investors sought safe-haven assets despite a stronger dollar and inflation concerns tied to higher oil prices during the US war on Iran.
Quarterly revenue rose 15% to US$6.36 billion, while copper production jumped 35% from the previous quarter to 23,000 tonnes as Cadia recovered from a prior-quarter disruption.
Shares of the company were up 1.5% in extended trading.
Newmont said it was advancing its Red Chris Block Cave joint venture in the British Columbia province of Canada toward a final investment decision in early 2027.
The project is expected to produce about 3 million ounces of gold and more than 850,000 tonnes of copper over an initial 13-year cave life. Commercial production is targeted for 2033.
The miner, which owns 70% of Red Chris, estimated development capital at US$4.2 billion to US$4.8 billion, net of an anticipated C$500 million ($508.80 million) contribution from the Canadian government.
The company also amended its Nevada Gold Mines joint venture agreement with Canada’s Barrick Mining (TSX:ABX) to include Barrick’s Fourmile and Newmont’s Fiberline and Mike properties, and plans to pay Barrick US$1.95 billion in the fourth quarter.
CEO Natascha Viljoen said Newmont was not interested in bidding for Australian gold miner Northern Star Resources (ASX:NST), saying its assets did not align with the company’s strategy.
“It is really hard to find anything better than what we have internally in our own operations,” Viljoen said.
The company posted adjusted profit of US$2.20 per share for the quarter ended 30 September, above analysts’ average estimate of US$2.05 per share, according to data compiled by LSEG.
(Reporting by Varun Sahay in Bengaluru and Divya Rajagopal in Toronto ; Editing by Sahal Muhammed)
Image: Newmont
