TORONTO (miningweekly.com) – Despite reporting a drop in headline earnings, gold major Newmont Mining has beaten analyst forecasts by $0.14 a share with its first-quarter results.

For the three months ended March 31, the Denver, Colorado-based miner reported a 20% drop in adjusted net income of $182-million, or $0.34 a share, down from $229-million, or $0.46 a share, in the previous year quarter.

Net income attributable to shareholders from continuing operations narrowed to $78-million, or $0.15 a share, from $175-million, or $0.35 a share, in the comparable quarter of 2015.

Newmont generated cash from continuing operations of $524-million and free cash flow from continuing operations of $227-million, compared with $628-million and $344-million in the previous period.

Revenue remained flat year-over-year at $2-billion in the quarter. The average net realised gold price was $1 194/oz, and copper sold for $2.02/lb, compared with $2.34/lb in the previous year quarter.

Attributable production totalled 1.23-million ounces, up from 1.19-million ounces in the first quarter of 2015, as higher output from Batu Hijau, in Indonesia, and Kalgoorlie, in Australia, as well as the inclusion of the Cripple Creek & Victor (CC&V) mine, in Colorado, more than offset declining production at Yanacocha, in Peru. This was compounded by the sale of Waihi. Attributable copper production totalled 38 000 t compared with 37 000 t a year earlier, as Batu Hijau continued to mine higher-grade ore, the company advised.

The company reported improved consolidated all-in sustaining costs (AISC) of $828/oz, compared with $849/oz in the previous year's comparable quarter, and copper AISC to $1.33/lb, compared with $1.73/lb in the previous year's comparable quarter.

Newmont noted an improved 2016 cost outlook and maintained its long-term production and cost outlook, including money-making gold production of between 4.5-million and 5-million ounces, at AISC below $1 000/oz.

The company, the world’s second-largest miner by market capitalisation, said that its expansion projects – Merian, which was 80% complete, Long Canyon and the Tanami – were progressing on schedule, while the CC&V expansion reaching first production at the new valley leach facility.

Newmont traded 1% higher in after-market trading Wednesday on the NYSE, at $30.75 apiece, having gained 68% in value since the start of the year.