Newmont Mining, the world’s largest gold producer, reported adjusted second-quarter earnings of $1.43 per share, outperforming the consensus estimate of $1.18. Strong gold prices helped offset an 8% decline in production, which fell to 1.48 million ounces for the quarter.
Gold averaged $3,220 per ounce during the period, up about 12% quarter-over-quarter and roughly 40% year-over-year, while realized prices were near $3,320 per ounce. Those higher prices lifted revenues and more than offset a modest increase in all-in sustaining costs, which rose to $1,593 per ounce.
Newmont has also taken steps to strengthen its balance sheet by divesting non-core assets and using proceeds to reduce debt. The company is concurrently managing a serious incident at one of its Canadian operations, where three workers remain trapped underground.