Newmont Rallies on Earnings

The stock rises 3% after the first-quarter profit doubles.
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Newmont Mining

(NEM) - Get Report

, a gold producer, said its first-quarter earnings more than doubled from a year ago, as the price of gold soared.

The company earned $209 million, or 46 cents a share, in the quarter, compared with $84 million, or 19 cents a share, including an 11-cent gain due to a tax adjustment, a year ago. From the continuing operations, the company earned 47 cents a share. Analysts surveyed by Thomson First Call were expecting earnings of 32 cents a share in the most recent quarter.

First-quarter revenue rose 21.5% from a year ago to $1.15 billion on gold sales of 1.8 million ounces as against analysts' expectation of 1.2 billion.

Denver-based company expects to sell 7.7 million to 7.9 million ounces of gold and 470 million to 475 million pounds of copper in this year.

Gold sales in Nevada decreased 9.1% to 535,000 ounces, and at the company's Yanacocha mine in Peru gold sales were 769,900 ounces.

"Our first quarter's results reflect strong margin and earnings per share growth from a higher realized gold price of $555 per ounce and our continued focus on cost containment," the company said. "With the current gold price in excess of $600 per ounce, we expect to deliver expanding gold margins for our shareholders."

Newmont rose $1.78 to $57.20.

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