Strong Gold Prices Power Newmont Mining's Best-Ever Quarter
Newmont Mining (NYSE: NEM) reported the best quarter in its history today, thanks to a 30% increase in its realized gold price. Overall, the gold mining giant generated $1.7 billion of adjusted EBITDA and $1.3 billion of free cash flow, record levels for the company. Meanwhile, its adjusted net income more than doubled to $697 million, or $0.86 per share, which beat analysts' expectations by $0.03 per share.
Those strong financial results came even though attributable gold production declined by 6% to 1.54 million ounces. Holding down output were some coronavirus-related impacts at three mines and the sale of two others, which the company partly offset with higher production from two other locations. Because of that lower output, the company's costs rose 3% on a per-ounce basis. But it more than offset that thanks to a 30% increase in its realized gold price, which averaged $1,913 an ounce during the period.
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Source Fool.com
