Newmont Mining Corp. has seen its stock climb 144% as it cut its costs and increased its production.

In response to lower prices, this industry leader has aggressively cut its operating costs. It’s also bought properties to boost its production. Those moves put Newmont Mining in a strong position to spur its long-term earnings when gold prices recover long term. However, its progress may be slow in the next few months.

NEWMONT MINING CORP. (New York symbol NEM; www.newmont.com) is one of the world’s largest gold and copper producers, with major mines in the U.S., Peru, Suriname, Australia, Ghana and Indonesia.

Gold peaked at just over $1,900 an ounce in 2011, but fell to around $1,050 in 2015. Prices have since rebounded to around $1,300.

In response to lower gold prices, Newmont focused on improving its efficiency. In the quarter ended March 31, 2016, its operating costs per ounce fell 29.7%, to $828 from a recent peak of $1,177 in 2012.

In addition, the company took advantage of low gold prices to buy attractive properties. These include its August 2015 purchase of the Cripple Creek & Victor mine in Colorado for $821 million. This project will produce 350,000 to 400,000 ounces of gold a year once the company completes the mine’s current expansion in 2016.

Mining Stocks: Acquisitions lift production 3.6%

Thanks to this purchase, Newmont’s gold production in the first quarter of 2016 rose 3.6%, to 1.23 million ounces from 1.19 million a year earlier. That pushed up its revenue by 3.0%, to $2.03 billion from $1.97 billion.

However, earnings fell 20.5%, to $182 million from $229 million. That’s due to higher depreciation charges and taxes. Per-share earnings fell 26.1%, to $0.34 from $0.46.

Newmont’s balance sheet remains strong. As of March 31, 2016, it held cash and investments of $2.5 billion, or $4.69 a share. Its long-term debt of $5.4 billion is a moderate 28% of its market cap.

The company’s expansion projects will increase its gold production for 2016 to as much as 5.45 million ounces. Output could rise to as high as 5.7 million ounces in 2017.

The stock has moved up along with gold prices. It now trades at 29.5 times the $1.22 a share that Newmont will likely earn in 2016. The $0.10 dividend yields 0.3%.

Recommendation in Wall Street Stock Forecaster: BUY, but only for investors who want to own a gold stock.

For our report on a gold/silver mining stock that has stepped up its production, read Output boosts outlook for gold/silver miner.

For our view on how to make the most of gold investments, read Avoid these gold investing stocks—and maximize your profits.