Newmont profits capitalize on increasing gold, silver prices
The price of gold outpacing expenses and costs to employ and operate mines helped provide the globe's second-largest bullion producer with increased profits from the first quarter of the year, Reuters reports.
Newport Mining's earnings for January, February and March amounted to $561 million and $1.13 per share, a significant improvement against $514 million and $1.04 per share during the same period last year. Revenues for the Denver, Colorado-based firm advanced to $2.68 billion.
The first quarter of 2012 saw the yellowish metal increase its value 8 percent. Bullion was priced at $1,563.80 per troy ounce on the final day of the quarter after having notched its low of $1,563.80 per troy ounce.
Copper prices also advanced during the first quarter of the year, as the reddish metal achieving an 11 percent increase aided by mine optimisation.
Despite hiccups with growth in the globe's most rapidly developing economic system, the industrial metal gained in value on Friday for a fourth consecutive day in response to reports of weakened supplies, according to Bloomberg.
The price of the precious metal was gaining on Friday as well, MarketWatch reports. Bullion increased due to the U.S. dollar slipping in value as the two typically perform the inverse of one another.
Newmont predicted in February that 2012 expenses to manufacture the yellowish and reddish metals would rise, citing costs for labor and to power the operation. It also cited reduced production at an Indonesia mine.
Newmont projects this year's gold and copper production to be as high as 5.2 million ounces and 170 million pounds, respectively.