Gold major Newmont has posted an 85% year-on-year increase in its first-quarter adjusted net income, as new production from the acquisition of Goldcorp and higher average realised prices bolstered revenue.

The NYSE- and TSX-listed mining company on Tuesday reported adjusted net income of $326-million, or $0.40 a share, compared with $176-million, or $0.33 a share, in the prior-year quarter.

Net income from continuing operations was $837-million, or $1.04 a share, in the March quarter, which is an increase of $724-million from the prior-year quarter, owing to gains on the sale of assets, as well as higher production from the acquired Goldcorp assets.

Revenue rose 43% to $2.58-billion in the three-month period. The company reported that the average realised price for gold increased by $291/oz in the quarter to $1 591/oz, while the average realised copper price decreased by $1.33/lb to $1.56/lb.

Production increased by 20% year-on-year to 1.50-million ounces, owing to the new production from the Goldcorp assets, partially offset by the sale of Kalgoorlie, in Australia and lower ore grade milled at Ahafo, Yanacocha and Merian. All-in sustaining costs (AISC) increased 14% to $1 030/oz.

Attributable gold equivalent ounce production from other metals increased to 339 000 oz, primarily owing to new silver, lead and zinc production from Peñasquito, partially offset by the classification of copper as a by-product at Phoenix following the formation of Nevada Gold Mines (NGM).

NGM’s attributable gold production was 329 000 oz with costs applicable to sales of $733/oz and AISC of $927/oz for the first quarter 2020. Earnings before interest, taxes, depreciation and amortisation (Ebitda) for NGM was $264-million.

Newmont has withdrawn its 2020 guidance as some production could be deferred into 2021 if some operations are on care and maintenance for an extended period during the Covid-19 pandemic.

Two of the group’s operations were temporarily in care and maintenance, but sites representing about 90% of planned production for the year were operating, Newmont reported.

“These unprecedented times further highlight the importance of a proven operating model, talented workforce and the ability to adapt to dynamic circumstances quickly and with care for all stakeholders," said president and CEO Tom Palmer.

“Our world-class diversified portfolio of assets and resilient team delivered solid first quarter performance with $1.1-billion in adjusted Ebitda and $611-million in free cash flow. Our robust balance sheet provides us with significant financial flexibility to continue allocating capital where it is needed most during this time of uncertainty, while maintaining our industry-leading returns to shareholders."

The miner earlier declared a first-quarter dividend of $0.25 a share, which is a 79% increase over the prior-year quarter.