Newmont Corporation (NYSE:NEM), a leading gold mining company, reported a year-over-year decline in its third-quarter earnings, falling from $213 million or 27 cents per share to $158 million or 20 cents per share. This reduction is attributed to decreased gold production. The adjusted earnings for the quarter were recorded at 36 cents per share, underperforming Wall Street's projection of 40 cents.
Quarterly sales also experienced a downturn, dropping by 5.4% to $2.49 billion, which fell short of Wall Street's expectations of $2.83 billion. The Denver-based firm is currently in the process of acquiring Australian competitor Newcrest Mining (OTC:NCMGF) in a record $17.5 billion deal, set to finalize on November 6th.
In Q3, Newmont realized an average price of $1,920 per ounce of gold based on 1.29 million ounces of production. However, the company has revised its production forecast downwards to 5.3 million ounces due to several disruptions.
These disruptions include issues at the Mexican Peñasquito property, lower output from Nevada Gold Mines and Pueblo Viejo joint ventures, and equipment problems at the Ahafo mine in Ghana.
Newmont now expects an average gold cost applicable to sales price of $1,000 per ounce by 2023 and an all-in sustaining costs price of $1,400 per ounce.
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