Newmont Mining 3Q Profit Doubles On Record Revenue

Newmont Mining Corp.'s (NEM) third-quarter profit more than doubled, blowing past analysts' estimates, amid costs costs and record revenue due to higher metals prices.

The industry has seen gold prices rally - the metal broke through the benchmark $1,000 level in September for the first time since February and reached record levels. Gold and copper prices both jumped during the quarter. Still, in the face of the economic downturn, Newmont has cut costs. On Thursday, President and Chief Executive Richard O'Brien said cost cuts led to a 13% improvement in gold cost of sales per ounce from the year-ago quarter.

The company also forecast that its equity gold sales for 2009 would be at the low end of its previously given range because of the extended start-up of a new project. Newmont also forecast equity gold sales would improve 5% to 10% in 2010 because of increased production.

Newmont, the world's second-biggest gold miner after Barrick Gold Corp. (ABX), reported third-quarter earnings of $388 million, or 79 cents a share, up from $191 million, or 42 cents, a year earlier. Revenue jumped 49% to a record $2.05 billion.

Analysts polled by Thomson Reuters had expected earnings of 55 cents on $1.72 billion in sales.

The company saw net sales of gold jump 29%, and copper sales more than quadrupled.

Shares closed at $41.50 Wednesday and were inactive premarket.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; [e-mail]