(Reuters) -Newmont surpassed Wall Street expectations for second-quarter profit as the world’s top gold miner benefited from a rally in bullion prices, sending its shares more than 2% higher in extended trading on Thursday.

Prices of the precious metal have consistently set record highs over the past few quarters, as uncertainty over U.S. President Donald Trump’s tariff plans and geopolitical concerns boosted gold’s safe-haven appeal.

In the second quarter, gold prices averaged at $3,220.58 per ounce, more than 12% higher than the preceding quarter and nearly 40% above levels seen a year earlier.

Newmont’s average realized price for gold was at $3,320 per ounce, compared with $2,347 a year ago.

The bullion rally helped Newmont cushion an 8% fall in gold production to 1.48 million ounces in the second quarter. Meanwhile, all-in-sustaining costs for gold, an industry metric reflecting total expenses, rose nearly 2% to $1,593 per ounce.

The decrease in output comes after Newmont began divesting non-core assets last year to reduce debt in the months following the completion of its $17.14 billion deal for Australian miner Newcrest.

Since November 2024, Newmont has divested its Eleonore mine in Canada for about $795 million, the Musselwhite Gold Mine in Ontario in an $850 million deal, and its stake in Porcupine Operations in Ontario for $425 million.

Earlier this week, the company said three workers were trapped underground at a western Canadian mine operated by Newmont, adding that operations had been temporarily suspended at the mine.

It has deployed specialized drones to assess the geotechnical conditions underground and is focused on re-establishing communication with the trapped workers.

On an adjusted basis, the miner posted a profit of $1.43 per share for the three months ended June 30, compared with analysts’ average estimate of $1.18 per share, according to data compiled by LSEG.

(Reporting by Vallari Srivastava in Bengaluru; Editing by Devika Syamnath)