Cost control is effective, Newman Mining (NEM.US) third-quarter profits exceed expectations.

Against the backdrop of soaring prices of precious metals, the world's largest gold mining company, Newmont Mining Corporation (NEM.US), reported quarterly earnings that exceeded expectations, mainly due to the company's cost control. The financial report shows that the company's revenue in the third quarter was $5.52 billion, a year-on-year increase of 19.7%, surpassing market expectations. Earlier this year, a key cost indicator had soared to a record high, but expenses fell slightly in the third quarter, performing better than expected. This led to earnings per share of $1.71 for the company, exceeding analysts' average expectations by $0.29. Although the company reported better-than-expected adjusted earnings and revenue in the third quarter, it was unable to fully leverage the record high gold prices due to lower production. In the third quarter, the average realized gold price for Newmont Mining rose from $2,518 per ounce in the same period last year to $3,539 per ounce, but gold production decreased by 15% from 1.67 million ounces to 1.42 million ounces. This was mainly due to declining ore grades, planned maintenance at the Penasquito mine in Mexico and the Lihir mine in Papua New Guinea, as well as the completion of mining at the Subika open pit at Ahafo South earlier in the quarter. Total maintenance costs for gold in the third quarter decreased by 2.8% to $1,566 per ounce. After spending $15 billion to acquire Newcrest Mining, expanding their portfolio to around 20 mines, and controlling expenses under outgoing CEO Tom Palmer, Newmont Mining also raised guidance on certain cost indicators. According to sources, Newmont Mining has informed management that the company aims to be closer to the lowest cost companies in the industry, a vision that could lead to significant layoffs. Newmont Mining stated in a release: "The company expects to realize the full benefits of cost-saving measures, which will be reflected in the guidance for 2026 to be announced next year." Against the backdrop of soaring prices of precious metals, the company's stock price has risen approximately 140% year-to-date, nearing the industry average.