KEY POINTS
- Newmont shares dropped 7.2% after missing Wall Street’s earnings expectations.
- The company reported a net income of $922 million, nearly six times higher than last year.
- Newmont produced 1.67 million ounces of gold, surpassing its rival Barrick Gold.
Newmont Corp. shares fell as much as 7.2% in postmarket trading on Wednesday after the world’s top gold producer reported third-quarter earnings that missed Wall Street expectations, despite posting its largest quarterly profit in five years.
The stock dropped to a low of $53.60 after the Denver-based company revealed quarterly revenue and adjusted earnings that were below analyst estimates. This comes even as Newmont reported a net income of $922 million for the quarter, nearly six times higher than the same period last year.
Strong growth driven by Newcrest acquisition and gold production
According to a report by mining.com, Newmont is projected to earn $3.2 billion in 2024, which would make it the company’s most profitable year on record. The company is the first major gold producer to report earnings this season, during which gold miners are expected to post strong profits due to soaring gold prices and lower production costs.
Newmont’s growth is also driven by its $15 billion acquisition of Newcrest Mining Ltd., which expanded its portfolio with additional gold and copper mines. The company produced 1.67 million ounces of gold in the third quarter, far exceeding its closest competitor, Barrick Gold Corp., which reported producing 943,000 ounces.
