Newmont Stock Is Diving. Earnings Fall Short, and Gold Costs More to Produce.

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Gold miner Newmont disappointed with its second-quarter report.

Photograph courtesy of Newmont Mining Corporation.

Shares of


tumbled Monday after the gold miner’s second-quarter earnings fell short of estimates.


(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.”

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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…


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