Newmont Goldcorp profit misses on higher costs, cuts production target
Newmont Goldcorp missed Wall Street estimates for quarterly profit due to higher costs and the world’s biggest gold miner cut its annual output target on Tuesday as production remained suspended at one of its largest mines in Mexico.
The company said it expects attributable production for the year to be 6.3 million ounces, down from a prior forecast of 6.5 million ounces.
The gold miner had said in October a blockade that had restricted production and exports of lead and zinc concentrates from its Penasquito mine in Mexico has been lifted, though operations still remained suspended.
The blockade hit Penasquito’s third-quarter production by some 11,000 gold ounces, 1.7 million silver ounces, 13.7 million pounds of lead and 22.8 million pounds of zinc, the company had said.
Newmont is in the process of integrating new operations after it finalized its acquisition of Goldcorp and its Nevada joint venture with Barrick Gold Corp in the second quarter.
All-in sustaining costs, an industry metric that reflects total costs associated with production, rose 10% to $987 per ounce in the quarter due to a rampup to boost gold reserves.
Adjusted net income rose to $292 million, or 36 cents per share, for the third quarter ended Sept. 30, from $175 million, or 33 cents per share, a year earlier.
Analysts were expecting a profit of 39 cents, according to IBES Refinitiv data.
(By Arundhati Sarkar; Editing by Arun Koyyur)