Newmont Mining’s Q3 2016 Earnings Review: Higher Gold Prices Boost Results As Cost Reduction Remains In Focus
Newmont Mining reported strong Q3 results, with elevated gold prices in the third quarter boosting the company’s earnings. The company’s average realized gold price stood nearly 20% higher in Q3, with heightened macroeconomic uncertainty in the wake of the UK’s June EU referendum boosting the investment demand for gold and prices of the metal. [1] However, Newmont Mining is well-prepared for an environment of lower gold prices, as well. The company remains on track to meet its all-in sustaining cost (AISC) guidance for the year, despite reporting a higher AISC figure in Q3, which would represent a 2% year-over-year decline. [1] The sale of high-cost mines and operational improvements will enable the company to lower its AISC. With gold prices having declined over the course of October in anticipation of a potential Fed interest rate hike in December, lower cost operations will stand the company in good stead going forward.
Have more questions about Newmont Mining? See the links below.
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Notes:- Newmont Mining’s Q3 2016 Earnings Presentation, Newmont Mining Website [↩] [↩]