(Reuters) – Newmont Corp beat Wall Street expectations for first-quarter profit on Thursday, as the world’s largest gold miner benefited from higher prices of the yellow metal.
Average prices of gold, considered as a safe-haven asset, rose 7.8% and peaked over the $2,000-mark during the reported quarter on fears over the stability of the financial system after a banking crisis and a potential recession.
Newmont’s average realized gold prices stood at $1,906 per ounce, higher than $1,892 per ounce a year earlier.
Gold’s all-in sustaining costs (AISC), a key industry metric that reflects total expenses associated with production, rose to $1,376 per ounce from $1,156 per ounce.
Denver, Colorado-based Newmont, however, said attributable gold production for the first quarter fell to 1.27 million ounces from 1.34 million ounces a year earlier.
On an adjusted basis, the company posted a net income of 40 cents per share for the quarter ended March 31, compared with analysts’ average estimate of 33 cents per share, according to Refinitiv data.
(Reporting by Ankit Kumar; Editing by Shilpi Majumdar)
