- Newmont Corp (NEM.US) stock fell over 10% on Monday after the gold miner lifted its annual cost estimates and posted weak Q2 profit caused by lower gold prices and rising inflationary.
-
Net income dropped to $387 million, or 49 cents a share, from $650 million, or 81 cents a share, in the year-ago period. Analysts from FactSet expected earnings of 66 cents.
-
Earnings were affected by rising labor, materials, fuel, energy and consumables costs. Also expenses related to the Peñasquito profit-sharing agreement announced in early July weighed on company performance.
-
Revenue slipped 0.2% to $3.06 billion, slightly above market estimates of $3.04 billion, while costs applicable to sales surged over 33.0% to $1,708 billion. Profit was down nearly 41% compared to last year.
-
Company will pay a second quarter dividend of $0.55 per share, consistent with the previous seven quarters and said that the $1 billion share repurchase program may be used opportunistically in 2022.
-
Attributable gold production rose 3% to 1,495 thousand ounces, , while average realized gold price increased 0.7% to $1,836 per ounce.
Newmont Corp (NEM.US) stock launched today's session with a bearish price gap and is currently trading at the lowest level since April 2020. Stock tumbled more than 47.0% from its recent high and is approaching major support at $44.55, which coincides with 78.6% Fibonacci retracement of the upward wave launched in March 2020. Should break lower occur, downward move may accelerate towards pandemic lows at $33.00. Also medium-term 50-day SMA (green line) crossed under the long-term 200-day SMA (red line). This has formed a bearish ‘death cross’ formation. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
