Newmont beats quarterly profit estimates on higher gold prices, Cadia recovery

Newmont Corporation reported stronger-than-expected third-quarter profits on Thursday, driven by higher gold prices and a recovery in copper production at its Cadia mine in Australia. Gold prices averaged $4,204.59 per ounce during the period, reflecting a 17.6% increase compared to the previous year. This was attributed to investors seeking safe-haven assets amidst a stronger US dollar and concerns over inflation stemming from rising oil prices due to the US military operation in Iran.

The company's revenue surged by 15% to $6.36 billion for the quarter. Copper output at Cadia surged 35% from the prior quarter, reaching 23,000 tonnes, as a result of the mine's recovery from a disruption in the previous quarter. The adjusted profit per share for the quarter ended September 30 was $2.20, surpassing the average estimate of $2.05 per share set by analysts.

Newmont's shares rose by 1.5% in extended trading following the report. The company has also advanced the Red Chris Block Cave joint venture in British Columbia, Canada towards a final investment decision in early 2027, with the project expected to yield around 3 million ounces of gold and over 850,000 tonnes of copper over a 13-year cave life.

Commercial production at Red Chris is anticipated to commence in 2033. Newmont, which owns 70% of Red Chris, has estimated the development capital required for the project at between $4.2 billion and $4.8 billion, after accounting for a prospective Canadian government contribution of C$500 million ($356.99 million). Additionally, Newmont amended its joint-venture agreement with Barrick Mining in Nevada to incorporate Barrick's Fourmile, Newmont's Fiberline, and Mike properties, and has agreed to pay Barrick $1.95 billion in the fourth quarter.

Newmont's CEO, Natascha Viljoen, stated that the company has no intention of bidding for Australian gold miner Northern Star Resources, as its assets do not align with Newmont's strategic objectives.