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Newmont’s Q4 profit beats the Street

Gold producer Newmont Mining Corp. said yesterday that fourth-quarter profit soared, easily beating Wall Street estimates, as revenue almost doubled on record prices for the precious metal. Net earnings jumped to US$558-million, or US$1.13 per share, from US$4-million (US1¢) a year earlier. But Newmont backed off its previous forecast for a 5%-to-10% gold production increase this year, saying that 2010 production was expected to increase slightly. “A big factor is not only that gold prices were higher but also that their ounce sales were higher,” said Frank Holmes, chief executive of U.S. Global Investors, which has about US$2.5-billion in assets under management, including gold stocks. He noted Newmont’s capital expenditure budget was down “and with increasing production, those stocks tend to outperform…read more at the Financial Post