Newmont Up 4.3% in Premarket Trade as Q1 Adjusted Profit Almost Doubles, Topping Estimates

Newmont (NGT.TO, NEM) rose 4.3% in premarket New York trading after the world's No.1 gold producer on Thursday said first-quarter adjusted profit nearly doubled on higher production and prices for the metal. The company said its adjusted profit, excluding one-time items, rose to US$630 million, or US$0.55 per share, in the period, up from US$320 million, or US$0.40, in the year-prior period. The result was well above the consensus analyst estimate for the measure of US$0.37 per share, according to Capital IQ. Net income, including items, fell 51% to US$166 million from US$339 million. Newmont's gold production rose 32% to 1.68-million ounces from 1.27 million, while its average sales price rose 9.7% to US$2,090 per ounce from US$1,906. The company said it expects to produce 6.93 million ounce of gold in 2024,with all-in sustaining costs of US$1,400 per ounce, down from its first-quarter costs of US$1,439 per ounce. "Underpinned by the gold industry's leading portfolio of Tier 1 gold and copper operations, we remain well-positioned to achieve our full-year guidance and deliver meaningful synergies and productivity improvements from the combined portfolio," Chief Executive Tom Palmer said in a release. Newmont also said Lundin Gold (LUG.TO) will buy out Newmont's stream credit facility agreement and offtake agreement for gold production from the Fruta del Norte mine in Ecuador for US$330 million, while it retains an equity interest in the company. The company's shares were last seen up US$1.67 to US$40.27 in premarket trading. They closed up $1.29 to $52.87 Wednesday on the Toronto Stock Exchange.