Shares of Newmont tumbled Monday after the gold miner’s second-quarter earnings fell short of estimates.
Newmont (ticker: NEM) earned 46 cents per share in the quarter, which was lower than the Wall Street consensus estimate of 63 cents, according to FactSet. Newmont’s EPS in the year-ago quarter was 83 cents. Revenue of $3.06 billion in the quarter topped expectations for $3.04 billion.
Newmont said gold cost per ounce increased 23% to $932 from a year ago “primarily due to higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and an increase in commodity inputs, including higher fuel and energy costs.”
Newmont stock has dropped 12.4% to $45.02 on Monday.
The company also raised its all-in sustaining costs, or the sum of certain costs associated with production, to $1,150 per gold ounce from $1,050, due to the impact from “lower production volumes and higher direct operating costs related to labor, energy, consumables and supplies as a result of sustained inflationary pressures.”
While gold is becoming more expensive for Newmont to produce, the commodity price has been dropping; gold has fallen 5.9% so far this year to $1,720.1 an ounce earlier Monday. Meanwhile, Newmont stock has tumbled 27% so far in 2022, compared with a roughly 17% drop in the S&P 500 index,
Write to Angela Palumbo at [email protected]
Credit: www.marketwatch.com /