Greenwood Village, Colorado-based gold miner Newmont Mining Corp. (NYSE: NEM – $41.27) reported that adjusted net income in the second quarter rose to $231 million or $0.44 per share vs. $0.26 a year ago and well ahead of Street views of $0.30 as gold output rose and costs fell. Revenues rose to $2.04 billion from $1.91 billion a year earlier and topped the $1.90 billion mean estimate. Newmont, which also mines copper, has mines in the Americas, Africa, Australia and Asia. The company lowered its forecast for gold all-in sustaining costs – the industry benchmark – to between $870 and $930 an ounce in 2016. Its previous range was $880 to $940 an ounce. It left unchanged its 2017 forecast at between$850 and $950 an ounce.
While the board maintained its $0.10 annual dividend, the company plans to reassess its dividend policy later this year with a possible uptick to the payout, given its strong cash performance and the increase in gold prices. Meanwhile, Newmont Mining seems to be performing well from an operational standpoint. The production goals outlined at the beginning of the year seem achievable, supported by the results from the first two quarters. Shares of NEM, up 123% over the past twelve months, can continue to be held in a well-diversified aggressive account for further recovery.