Gold Miner Newmont Cuts Guidance After Disappointing Quarter

  • In Business
  • 2021-10-28 14:32:22Z
  • By Bloomberg

(Bloomberg) -- Newmont Corp. shares fell the most in four months as the world's biggest gold miner grapples with operational challenges and accelerating cost gains.

Most Read from Bloomberg

  • A Deep Dive Into Squid Game's World of Inequality

  • Meet Six People Fighting Water Scarcity Across the Globe

  • The Terrifying Rise of Haunted Tourism

  • Hamburg Is at the Heart of Germany's Growing Dilemma Over China

  • Can a New Mayor Fix Seattle's Downtown?

The Denver-based company churned out less bullion and profit than expected last quarter. In a report Thursday, it also lowered annual output guidance while raising its projection for costs.

Mining companies are navigating lingering operational restrictions in the pandemic. At the same time, tight labor markets and pricier freight, energy and other inputs are pushing up costs as supply-chain snarls continue to impact shipping of everything from bulldozers to iron ore. Those headwinds are hitting bullion producers harder than base metal miners given gold prices are down from a year ago.

Newmont cut its full-year guidance to 6 million ounces from 6.5 million ounces, citing difficulties at its mines in Boddington, Western Australia, and Nevada, as well as the continued impact from the pandemic in Canada and Australia.

That's after third-quarter output slipped to 1.45 million ounces versus the 1.6 million-ounce average estimate. Heavy rain at Boddington disrupted a switch to autonomous trucking.

Production is expected to increase about 5% next year, with costs likely to be in line with 2021 levels, Chief Executive Officer Tom Palmer said on a call with analysts.

The company's all-in sustaining cost jumped to $1,120 an ounce versus consensus of $1,024. It now projects $1,050 for the year from $970 previously.

Newmont reported adjusted earnings of 60 cents a share for the quarter, down from 86 cents a year ago and missing the 74-cent average estimate among analysts.

The company's shares fell as much as 5.3%, the steepest intraday decline since mid-June.

(Adds 2022 guidance for production and costs in sixth paragraph)

Most Read from Bloomberg Businessweek

  • Workers Press for Power in Rare Advance for U.S. Labor Movement

  • Australia Braces for Life After Covid Zero

  • You Could Be Competing With Bots to Buy Gifts This Christmas

  • Big Teacher Is Watching: How AI Spyware Took Over Schools

  • Colombia's Rain Shaman Got Paid to Stop the Storms, Until He Couldn't

©2021 Bloomberg L.P.


More Related News

Junket King
Junket King's Arrest Spurs Selloff as Key Macau Market Targeted

(Bloomberg) -- The tide turned swiftly on Friday in Suncity Group's VIP rooms across casinos in Macau, where millions of dollars are bet on blackjack and...

Huobi Group Picks Singapore as Regional Headquarters
Huobi Group Picks Singapore as Regional Headquarters

The crypto exchange has already moved significant parts of its operations to Singapore.

SoftBank-Backed Snapdeal Targets $250 Million IPO in 2022
SoftBank-Backed Snapdeal Targets $250 Million IPO in 2022

(Bloomberg) -- Snapdeal, the Indian online retailer backed by SoftBank Group Corp. and Alibaba Group Holding Ltd., plans to file preliminary documents for an...

Indonesia's Central Bank Wants to 'Fight' Crypto With CBDC: Report

Indonesia is considering developing a central bank digital currency as one way to counter the use of cryptocurrency in the country.

Omicron Reaches Nations From U.K. to Japan in Widening Spread
Omicron Reaches Nations From U.K. to Japan in Widening Spread

(Bloomberg) -- The omicron variant of Covid-19, first identified in South Africa, has been detected in locations from U.K. to Spain and Canada, showing the...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business