Newmont on Tuesday reported a weaker-than-expected third-quarter profit as the world’s biggest gold miner was hurt by lower gold prices, higher input costs and a tight labor market.
Gold prices were down 8% in the quarter, their worst since March 2021, primarily driven by hawkish interest-rate hikes by central banks around the world in the face of unrelenting inflation.
The miner said its third-quarter gold production rose to 1.49-million ounces from last year’s 1.45-million ounces, primarily due to higher ore grade milled at Ahafo, Akyem and Boddington mines. However, its realised gold price fell by $87/oz to $1 691/oz of gold.
All-in sustaining costs (AISC) for the quarter, an industry metric that reflects total expenses, rose to $1 271/oz from $1 120/oz.
The company’s adjusted profit fell to $212-million, or 27c a share, in the quarter ended September 30, from $483-million, or 60c a share, a year earlier.
Analysts on average had expected income of 36c a share.