Why Newmont Stock Is Falling Today

Newmont Corp NEM shares are trading lower Monday after the company reported top-line results that were down year-over-year. 

Newmont reported second-quarter revenue of $3.058 billion, which was down from $3.065 billion year-over-year. The company reported quarterly earnings of 46 cents per share, which may not compare to the estimate of 91 cents per share. 

Newmont said it produced 1.5 million attributable ounces of gold and 330,000 attributable gold equivalent ounces from co-products, an increase of more than 130,000 total gold equivalent ounces compared to the first quarter.

Newmont said earnings were negatively impacted by higher labor, materials and consumables costs of approximately $80 million, higher fuel and energy costs of approximately $50 million and a $70 million expense related to the Peñasquito profit-sharing agreement announced in early July. 

Newmont also updated its 2022 outlook. The revised outlook includes 6 million ounces of attributable gold production and 1.3 million gold equivalent ounces from copper, silver, lead and zinc. The outlook for attributable gold production includes negative impacts from operational challenges, as well as challenges from a competitive labor market, primarily in Canada and Australia.

See Also: Why Motus GI Holdings Shares Are Getting Hammered Today

NEM Price Action: Newmont has traded between $86.37 and $50.83 over a 52-week period.

The stock was down 13.7% at $44.36 at press time, according to data from Benzinga Pro.

Photo: PublicDomainPictures from Pixabay.