NEWMONT Mining's first-quarter profits more than doubled as it benefited from higher gold and copper prices and got a boost from production at a new Australian mine.
The US company, which is the world's second-largest goldminer, earned $US546 million ($588.62m), or $US1.11 a share, up from $US189m, or US40c a share, a year ago. Excluding gains from lower taxes and other items, it earned US83c a share. Analysts expected US79c a share, excluding special items.
The results indicated pockets of improvement in the global economy, such as a stronger appetite for gold from investors and jewellery makers in China and India. Copper demand is picking up in Asia.
"They're till seeing positive market fundamentals," Argus Research analyst Bill Selesky said.
There has been speculation that Newmont may make an offer for Australia's Lihir Gold, which is being pursued by Newcrest.
Revenue rose 46 per cent to $US2.24 billion from $US1.54bn a year ago -- beating analysts' estimates of $US2.15bn.
Newmont produced 1.3 million ounces of gold, compared with 1.27 million ounces a year ago.
Its average price of gold was $US1106 an ounce during the quarter compared with $US906 an ounce a year ago.
Costs for gold sales rose to $US480 an ounce from $US431. The cost of producing it rose because of higher mining and milling expenses and lower production from mines in Nevada and Peru. Newmont sells gold to refineries in the US, Australia, Europe and elsewhere.
Gold prices were benefiting from the improving global economy and historically low central bank sales, Newmont president and chief executive Richard O'Brien said.
Some countries were buying gold, and that had tightened supply, he said. Newmont produced 90 million pounds of copper, compared with 43 million pounds a year ago. Copper prices averaged $US3.33 a pound compared with $US1.69 a pound a year ago. Newmont produced 158,000 ounces of gold and 14 million pounds of copper from Boddington, its new Australian mine.
Newmont shares rose US66c to $US53.85 in afternoon trading.
