NEWMONT, shares plunged on Wednesday (Oct 23) in postmarket trading after reporting quarterly earnings that fell short of Wall Street’s expectations.
The stock plunged as much as 7.2 per cent to a low of US$53.60 in New York after the world’s top gold producer reported third-quarter results that missed analysts’ expectations for revenue and adjusted earnings. The miss came even as Newmont posted its largest quarterly profit in five years.
Newmont’s net income attributable to shareholders was US$922 million in the quarter, nearly six times more than the year-earlier period, the Denver-based company said on Wednesday in its earnings report. That windfall puts Newmont on track to rake in US$3.2 billion this year, according to estimates, which would be the company’s strongest year on record.
Newmont is the first major gold miner to report results in an earning season that’s expected to see bumper profits for bullion miners. The companies are cashing in on a soaring gold price that has hit repeated record highs this year while costs for mining the metal have eased.
The company is also benefiting from its roughly US$15 billion purchase of Newcrest Mining last year, which added a suite of gold and copper mines to the portfolio and cemented its status as the world’s biggest producer of the precious metal. Newmont churned out 1.7 million ounces of gold in the quarter, well surpassing its biggest rival, Barrick Gold, which said it produced 943,000 ounces in preliminary results posted last week.
The company will hold an earnings call on Thursday to discuss results. BLOOMBERG
