The world’s largest gold miner, Newmont, has posted a near threefold increase second-quarter earnings, as a surging gold price offset lower production as a result of Covid-19 mine suspensions.
The US-based miner’s adjusted net income for the June quarter was $261-million, or $0.32 a diluted share, compared with $92-million, or $0.12 a diluted share in the prior-year quarter.
Revenue rose 5% from the prior-year quarter to $2.37-billion, helped by record-high gold prices. The miner’s averaged realised gold price for the three months was $1 724/oz, an increase of $407/oz over the prior-year period.
The gold price has scaled record levels this year, as investors fled to safer assets during the coronavirus pandemic and intensifying tensions between the US and China. The spot metal touched $1 981.27/oz earlier this week, which is about $60/oz above the previous peak set in 2011.