Newmont cost-cutting helps boost earnings as gold prices rally

Newmont Corp. has made progress getting its costs under control, helping the world’s top gold miner beat expectations on earnings at a time when a rally for the precious metal is underpinning the industry.

The producer’s all-in sustaining costs, the industry benchmark gauge for expenses, decreased about 4% to $1,593 per bullion ounce in the second quarter, the company said Thursday. That came in under analyst expectations.

The drop in costs marks a sharp turnaround for the company, which had struggled with rising expenses, mirroring issues across the industry. Just last quarter, Newmont had posted its highest quarterly costs in at least nine years, limiting its ability to fully take advantage of the sharp rise in the bullion market.

The company attributed this quarter’s cost decline to lower spending across its operations, particularly at two of its Australian mines and its Lihir mine in Papua New Guinea.

Shares of Newmont rose roughly 3% in post-market trading on Thursday.

Gold has climbed by more than 25% this year as uncertainty around global trade and conflicts in Ukraine and the Middle East sparked a flight to haven assets.

(By Jacob Lorinc)