Newmont Mining (NYSE:NEM)(ASX:NEM) exceeded analysts' estimates as first-quarter profits surged 46 percent on increased selling prices of gold.
According to CEO and President Richard O'Brien, performance for the quarter was based on growing demand and tighter supply, which should ensure bullish prices going forward.
on the conference call, O'Brien said, "Fundamentals including evidence of a rebounding market in India and growth from the jewelry market in China, plus sustained flows and historically low central bank sales continue to support gold price performance."
Net earnings for the quarter climbed to $743 million, or $1.11 a share, a major increase over the $277 million, or 40 cents a share last year in the same quarter.
Revenue grew 46 percent to $2.24 billion on sales of 1.33 million ounces of gold for the quarter. That was an increase from the 1.26 million ounces sold last year.
The average price of gold sold for the quarter grew 22 percent to $1,106 an ounce, with cost in relationship to sale stood at $480 an ounce.
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