Newmont Corp. (NEM, Financial), the world's largest gold producer, reported its highest quarterly profit in five years due to surging gold prices. The company announced a net profit of $922 million for the third quarter, nearly six times higher than the same period last year. Analysts predict this windfall could lead Newmont to achieve a record $3.2 billion in total profit for the year.
Despite the impressive profit growth, Newmont's stock fell nearly 7% in after-hours trading as its adjusted earnings per share of $0.81 fell short of the anticipated $0.86 by analysts. Year-to-date, Newmont's stock has surged over 40%, outpacing the S&P 500's 22% gain during the same period.
Last year, Newmont solidified its position as the leading gold producer by acquiring Newcrest Mining for approximately $15 billion, adding several gold and copper mines to its portfolio. In this quarter, Newmont produced 1.67 million ounces of gold, significantly surpassing its main competitor, Barrick Gold Corporation, which produced 943,000 ounces.
Newmont is the first major gold producer to report earnings this season, with expectations of robust profits from other gold mining companies following suit as gold prices continue to rise and production costs decline. Influenced by factors such as the Federal Reserve's shift towards a rate-cutting cycle, geopolitical tensions, and uncertainty surrounding the U.S. elections, international gold prices have repeatedly hit new highs. On Wednesday, spot gold reached an all-time high of $2,758.25, with Wall Street analysts projecting prices to break the $3,000 mark.
