Newmont ( NYSE: NEM ) -10.2% to its lowest level since April 2020 in Monday's trading after reporting weaker than expected Q2 earnings , hurt by a drop in gold production and prices, and lowered its gold production forecast for the full year.
Q2 net income from continuing operations fell to $379M, or $0.48/share, from $640M, or $0.80/share in the year-ago quarter, while revenues totaled $3.06B, compared with $3.07B a year earlier and in line with analyst estimates.
Newmont's ( NEM ) Q2 gold production rose 3% Y/Y to 1.5M oz from 1.45M oz, at an all-in sustaining cost of $1,199/oz compared with $1,035/oz a year ago.
Newmont ( NEM ) said earnings were hurt by higher labor, materials and consumables costs, higher fuel and energy expenses, and a $70M charge related to the profit-sharing agreement announced in early July with the workforce of its Peñasquito mine in Mexico.
For the full year, Newmont ( NEM ) now forecasts attributable gold production of 6M oz, down from previous guidance of 6.2M oz and below 6.3M oz analyst consensus estimate, at all-in sustaining cost of $1,150/oz, below its prior forecast of $1,050/oz and $1,111/oz consensus.
The miner cited negative impacts from labor availability and supply chain disruptions affecting the Ahafo mine in Ghana, a transition to a leach-only operation at the Cripple Creek & Victor mine in the U.S., and a productivity slowdown caused by more competitive labor markets in Canada and Australia.
Newmont's ( NEM ) stock price return shows a 24% YTD drop and a 23% loss during the past year .
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Newmont Q2 profit plunges as costs rise; cuts full-year production guidance