TORONTO (miningweekly.com) – Denver-based Newmont Mining earned $388-million in the third quarter, compared with net income of $191-million a year earlier, helped by surging gold prices, lower production costs and increased volumes.

Revenue in the quarter rose to a best-ever $2,05-billion, compared with $1,37-billion in the same period of 2008.

Newmont said gold sales increased 4%, to 1,33-million ounces of gold and realised an average gold price of $964/oz.

The group also sold 64-million pounds of copper, at $2,80/lb.

Costs applicable to sales declined to $404/oz, compared with $467/oz in the year ago quarter.

"Our continued focus on cost containment resulted in a 13% improvement in gold cost of sales per ounce over the same quarter last year,” said CEO Richard O'Brien.

“Combined with the current favourable commodity price environment, our gold operating margin grew by 41% to $560 per ounce during the quarter.”

Because of a longer start-up at the new Boddington mine, in Australia, Newmont said it expects gold sales for the full year will be about 5,2-million ounces, which is at the lower end of its previously estimated range.

The company has also narrowed its outlook for 2009 costs applicable to sales to between $400/oz and $425/oz, to reflect improvements in its operating costs and higher prices for byproduct metals.

For 2010, Newmont announced on Thursday that it expects its share of gold production to improve by around 5% to 10%, primarily as a result of higher production from Boddington in Australia and Batu Hijau in Indonesia, partially offset by lower production in Nevada and Yanacocha in Peru.

The company also announced that it expects 2010 costs applicable to sales to be 5% higher than this year's figures, "partially as a function of higher expected energy costs and adverse changes in exchange rates".

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