Newmont stock drops after profit miss, as costs jump 33% while sales slip

Shares of Newmont Corp. NEM, -10.10% dropped 2.5% toward a more than two-year low in premarket trading Monday, after the gold miner reported second-quarter profit that fell well short of expectations, as cost of sales jumped 33% while sales slipped. Net income declined to $387 million, or 49 cents a share, from $650 million, or 81 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 46 cents missed the FactSet consensus of 66 cents. Sales slipped 0.2% to $3.06 billion, just above the FactSet consensus of $3.04 billion, while costs applicable to sales rose 33.3% to $1,708 billion. Newmont said earnings were negatively impacted by higher labor, materials and consumables costs, higher fuel and energy costs and expenses recognized related to the Peñasquito profit-sharing agreement announced in early July. Attributable gold production increased 3% to 1,495 thousand ounces, above 1,455 thousand ounces, while average realized gold price edged up 0.7% to $1,836 per ounce. The stock, which was on track to open at the lowest price since April 2020, has tumbled 29.2% over the past three months through Friday, while the SPDR Materials Select Sector ETF XLB, +0.12% has lost 12.2% and the S&P 500 SPX, -0.19% has declined 7.8%.

 » Read More  » Read More

Tags: No tags

Comments are closed.