Newmont shares fall the most in a year as gold production disappoints

(Bloomberg) – Newmont Corp. recorded its worst day in 12 months after the world’s largest gold producer reported earnings that missed analysts’ estimates following a series of operational setbacks.

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Shares fell 6% in New York, for the biggest daily decline since July 2022.

Newmont’s second-quarter gold production fell 17% from a year earlier after it suspended Mexico’s major Penasquito mine due to a workers’ strike and announced weaker-than-expected performance at its Cerro Negro mine in Argentina and Akyem mine in Ghana. It also temporarily closed a mine in Canada due to nearby forest fires. Overall production costs hit $1,472 an ounce, beating the average analyst estimate compiled by Bloomberg.

Newmont, which is working to complete its acquisition of Newcrest Mining Ltd. in the largest deal ever in the industry, has seen its shares fall 10% this year, even as spot gold prices have risen around 8%.

The company reiterated its full-year guidance on Thursday and said it expects a stronger second half.

(Updates with closing prices.)

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