Tuesday, April 27, 2010

Newmont (NYSE:NEM) Soars on Copper, Gold Prices

Newmont Mining (TSE:NEM)(NYSE:NEM) had its earnings soar as increasing prices of gold and copper generated earnings of $546 million, or $1.11 a share.

Production was another key factor in the solid quarter for Newmont, with gold production up slightly, but copper production was over double what it was a year ago, as well as copper prices, which almost doubled from $1.69 a pound last year during the same quarter to $3.33 a pound the latest quarter.

Average price for gold per ounce was $1,106 an ounce, up from $906 an ounce last year.

“Fundamentals including evidence of a rebounding market [for gold] 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,” Newmont CEO Richard O’Brien told analysts in the conference call.

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