(Reuters) -Newmont Corp surpassed Wall Street expectations for second-quarter profit on Wednesday, driven by strong production and decreasing costs.
Robust Production
Attributable gold production increased to 1.61 million ounces in the second quarter from 1.24 million ounces a year earlier, exceeding analysts’ expectations of 1.56 million ounces.
Rising Gold Prices
The prices of gold surged by 4.2% in the April-June quarter, closing at $2,325.70 per ounce. This increase was fueled by purchases from global central banks and speculation that the U.S. Federal Reserve would lower interest rates in September.
The company’s shares rose by 2.3% after the report.
Exceeding Estimates
Newmont Corp, headquartered in Denver, Colorado, reported an adjusted profit of 72 cents per share for the April-June quarter, beating analysts’ estimates of 62 cents per share.
Investors and analysts alike were impressed by Newmont Corp’s strong production numbers and cost management in an environment of rising gold prices. This performance indicates the company’s ability to capitalize on market trends and deliver solid financial results.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Sriraj Kalluvila)
