UPDATE 2-Gold miner Newmont cuts cost forecast, beats market

Wed Jul 20, 2016 6:05pm EDT
 
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(Recasts; adds analyst comment, copper outlook details)

By Nicole Mordant

July 20 (Reuters) - Newmont Mining's adjusted net income in the second quarter blew past market expectations on Wednesday and the world's second biggest gold miner by value also cut its gold cost forecast, sending its shares higher after hours.

Greenwood Village, Colorado-based Newmont kicked off the reporting season for large North American gold miners, which are expected to have benefited from a rise in bullion prices this year.

Newmont, which also mines copper, said adjusted income rose to $231 million, or 44 cents a share, in the quarter ended June as gold output rose and costs fell.

That compared with $131 million, or 26 cents a share, in the same period a year ago and was well ahead of analysts' expectations, on average, of 29 cents a share, according to Thomson Reuters I/B/E/S.

Newmont's stock rose to $40.20 after hours from a $39.29 close. The miner's stock has risen 130 percent since January helped by a 24 percent gold price jump.

"It looks like solid results from the company. It's a deep beat relative to our numbers and the street," BMO Capital Markets analyst Andrew Kaip said.

Newmont, which has mines in the Americas, Africa, Australia and Asia lowered its forecast for gold all-in sustaining costs - the industry benchmark - to between $870 and $930 an ounce in 2016.   Continued...