Newmont shares drop 5% as Q3 results disappoint

DENVER - Shares of Newmont Corporation (NYSE: NEM) fell 5.6% in after market trading Wednesday after the gold mining giant reported third quarter results that fell short of analyst estimates.

Newmont posted adjusted earnings per share of $0.81 for Q3, missing the consensus forecast of $0.85. Revenue came in at $4.61 billion, below expectations of $4.67 billion.

The company produced 1.67 million attributable gold ounces in the quarter, up 4% from the prior quarter. However, costs remained elevated, with gold CAS (costs applicable to sales) rising 5% quarter-over-quarter to $1,207 per ounce.

"In the third quarter, Newmont delivered 2.1 million gold equivalent ounces and generated $760 million in free cash flow from our world-class portfolio," said Tom Palmer, Newmont's President and CEO.

While production improved sequentially, higher costs and lower-than-expected revenue weighed on the results. The miss on both the top and bottom lines disappointed investors, sending the stock lower.

Newmont maintained its full-year 2024 production guidance. The company expects to deliver 1.8 million attributable gold ounces at an all-in sustaining cost of $1,475 per ounce in the fourth quarter.

The miner continues to make progress on its divestment program, announcing agreements to sell assets in Ghana and Australia for up to $1.5 billion in combined proceeds. Newmont said it remains on track to receive at least $2 billion in gross divestiture proceeds.

Despite the earnings miss, Newmont declared a quarterly dividend of $0.25 per share. The company also authorized an additional $2 billion share repurchase program over the next 24 months.

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Source: Investing.com