Newmont Mining Corp (NYSE:NEM) reported Q1 2017 report that showed improved financial and operational performance. Revenue surged 13% to $1.7 billion for the first quarter mainly due to slightly improved pricing and higher volumes. Average realized price for gold surged $29 to $1,221 an ounce for the first quarter; for copper, average realized price surged $0.65 to $2.68 per pound.
Newmont reported that attributable gold production jumped 9% to 1.23 million ounces for the three-month period as new production from Long Canyon and Merian more than offset geotechnical concerns at Carlin. Exceptional weather affected operations in South America and Australia. GAAP net income from continuing operations came at $69 million while adjusted net income stood at $133 million.
The company recorded adjusted EBITDA of $566 million, up 20% from the previous year quarter. Gary Goldberg, the President and CEO of Newmont, reported that they generated strong financial numbers this quarter and approved strategies to invest in growth in Ghana and a potential gold district in the Yukon.
The company increased adjusted EBITDA by 20% to $566 million and free cash flow by over $320 million as against the previous year quarter. Newmont teams in South America and Australia overcame considerable weather events efficiently and safely and they remain on track to achieve 2017 outlook. Funding, resources and Permits are in place to establish the Subika Underground mine, which will yield 1.8 million ounces of gold in an eleven-year mine life, and access premium ore grades that are 3 times higher than surface mines, and the Ahafo Mill expansion.
Newmont’s capital and cost discipline, combined with industry-leading balance sheet, provides them the means to sustain self-funding projects, improving margins and enhancing the life and quality of reserves, with an objective to create sustainable value for company’s shareholders.
In the last trading session, the stock price of Newmont gained 0.29% to close the day at $34.48.