Gold producer Newmont Mining posted a 46% increase in its first-quarter revenue on higher selling prices for the precious metal.

Newmont, the world’s second-largest gold miner, said its net earnings jumped to $743m from $277m in 2009.

Revenue rose 46% to $2.24bn as Newmont sold 1.33 million ounces of gold in the quarter, up from 1.26 million ounces the previous year.

Newmont reduced costs as metal prices dipped in 2008 and achieved increased earnings as the prices regained in the recent quarters.

The company said the average selling price of its gold rose 22% to $1,106 per ounce, while costs applicable to sales were $480 per ounce.

Newmont Mining president Richard O’Brien said the growing demand and tighter supplies have combined to maintain a bullish sentiment on gold prices.

Gold output rose 4.4% while copper production more than doubled in the first quarter of 2010.