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Newmont Profits Soar on Gold Prices
23 Oct
Summary
- Elevated gold prices increased Q3 earnings significantly.
- Cadia mine's copper output recovered, boosting revenue.
- Newmont advances Red Chris project with a 2033 production target.
Newmont surpassed third-quarter profit estimates, largely due to a significant increase in gold prices, which averaged $4,204.59 per ounce. This rise in gold, a safe-haven asset, occurred even amidst a stronger dollar and inflation concerns.
Copper production at the Cadia mine in Australia saw a robust recovery, increasing by 35% from the previous quarter. This surge in output contributed to a 15% rise in overall quarterly revenue, reaching $6.36 billion.
Looking ahead, Newmont is advancing its Red Chris Block Cave joint venture in British Columbia, Canada, with a final investment decision anticipated in early 2027. The project is projected to yield approximately 3 million ounces of gold and over 850,000 tonnes of copper over its initial 13-year lifespan, targeting commercial production by 2033.
The company also renegotiated its Nevada Gold Mines joint venture with Barrick Mining, expanding the agreement to include additional properties. Newmont plans to pay Barrick $1.95 billion in the fourth quarter. CEO Natascha Viljoen indicated that Newmont is not pursuing Australian miner Northern Star Resources, stating a preference for its existing internal assets.
