Newmont Mining Corp.'s (NEM) third-quarter profit more than doubled, blowing past analysts' estimates, amid costs cuts and record revenue due to higher metals prices.

The industry has seen gold prices rally - the metal broke through the benchmark $1,000 level in September for the first time since February and reached record levels. Gold and copper prices both jumped during the quarter. Still, in the face of the economic downturn, Newmont has cut costs.

On Thursday, President and Chief Executive Richard O'Brien said cost cuts led to a 13% improvement in gold cost of sales per ounce from the year-ago quarter.

The company also forecast that its equity gold sales for 2009 would be at the low end of its previously given range because of the extended start-up of a new project. Newmont also forecast equity gold sales would improve 5% to 10% in 2010 because of increased production.

With that guidance, the company is showing production growth and the ability to keep cost increases moderate, and that's what investors like to see them do, Jefferies analyst Mike Dudas said.

Newmont, the world's second-biggest gold miner after Barrick Gold Corp. (ABX, ABX.T), reported third-quarter earnings of $388 million, or 79 cents a share, up from $191 million, or 42 cents, a year earlier. Revenue jumped 49% to a record $2.05 billion.

Analysts polled by Thomson Reuters had expected earnings of 55 cents on $1.72 billion in sales.

The company saw net sales of gold jump 29%, and copper sales more than quadrupled.

"Though it's not necessarily going to continue at this sort of rate, we still look forward to strong quarterly earnings going forward into 2010," Barnard Jacobs Mellet analyst Patrick Chidley said. He added the company's results were good and very clean, without the hedging problems seen with companies like Barrick Gold.

The numbers were better than expected, Dudas said, adding he thinks the market will "increasingly appreciate Newmont's ability to provide price leverage to the bottom line," meaning that as prices increase, that extra money earned goes to the bottom line and isn't eaten up by higher costs.

Chidley said the slight delay of the company's big project at Boddington until later in the fourth quarter was the one thing that took a little shine off the report.

Newmont lowered its full-year outlook for the Australia and New Zealand region for gold sales because of the later-than-expected startup of Boddington.

But with gold prices likely staying strong and as the Boddington project comes on line and boosts production, he said "this quarter is pretty indicative of what we're likely to see next year."

Shares of Newmont rose 2.8% to $42.68 in recent trading. The stock is up 4.9% so far this year but has lost 2.4% in the last month.

-By Kerry Grace Benn and Nathan Becker, Dow Jones Newswires; 212-416-2353; kerry.benn@dowjones.com