- 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.
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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.
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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.
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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.
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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.
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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
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