Newmont Reports Biggest Quarterly Profit in Five Years Amid Surging Gold Prices
Newmont, the world’s largest gold producer, reported its highest quarterly profit in five years, driven by a surge in gold prices. Despite the profit jump, shares of the company fell after both sales and earnings missed analysts' expectations.
In the third quarter, the Denver-based company's net income attributable to shareholders was \$922 million, nearly six times higher than the same period last year, according to an earnings report released Wednesday. Analysts estimate that Newmont is on track to generate \$3.2 billion in total profit for 2024, potentially marking the strongest year on record for the company.
Newmont is the first major gold producer to report earnings during a season anticipated to be highly profitable for gold miners, as companies benefit from soaring gold prices that have repeatedly reached record highs this year. Additionally, mining costs have eased, further bolstering profitability.
The company also benefited from its acquisition of Newcrest Mining for approximately \$15 billion last year. The acquisition added several gold and copper mines to Newmont's portfolio, cementing its position as the world’s leading gold producer. In the third quarter, Newmont produced 1.67 million ounces of gold, significantly outpacing its closest competitor, Barrick Gold Corp., which produced 943,000 ounces in the same period.
Despite the strong profit figures, Newmont's stock fell as much as 7% in post-market trading in New York after adjusted per-share earnings and sales figures came in below estimates. The company is expected to discuss the quarterly results further during an earnings call scheduled for Thursday.
