What caused NEM's Q2 2024 earnings to exceed forecasts?

Newmont's Q2 2024 earnings exceeded forecasts due to several key factors:

1. Higher Gold Production and Realized Prices: Newmont's attributable gold production increased by 32.3% year-over-year, reaching 1.68 million ounces in Q1 2024. This significant increase, coupled with a 9.7% rise in realized gold prices to $2,090 per ounce, significantly boosted revenues and earnings.
2. Cost Management: Despite higher production costs, Newmont effectively managed its costs applicable to sales (CAS) and all-in sustaining costs (AISC) for gold. The CAS rose by 3.1% to $1,057 per ounce, and the AISC increased by 4.6% to $1,439 per ounce. These increases were well-contained, ensuring that the company's profitability was not adversely affected.
3. Operational Efficiency and Strategic Initiatives: Newmont's operational efficiencies and strategic growth initiatives, such as the acquisition of Australian miner Newcrest, have positively contributed to its financial performance. The company's focus on cost savings and generating cash, as indicated by its plans to trim its workforce and sell non-core assets, has likely enhanced its financial health and profitability.

In summary, Newmont's Q2 2024 earnings exceeded forecasts due to higher gold production, favorable realized prices, effective cost management, and strong operational efficiency. These factors combined to deliver robust financial results that surpassed market expectations.