Newmont's Q3 2024 earnings fell short, as indicated by the earnings surprise of -0.04 EPS1, due to several key factors:
- Production Issues and Disruptions: Newmont experienced production challenges at certain mines, such as Cerro Negro and Lihir, which affected gold output. For instance, Cerro Negro saw a suspension of operations following a tragic accident, leading to lower production. Similarly, Lihir had a softer quarter with reduced gold output2. These disruptions likely impacted revenue and profitability.
- Lower Gold Production: Despite a 30% year-over-year increase in gold production, Newmont's gold-equivalent production per share was lower due to a significant increase in the company's share count resulting from the Newcrest acquisition. This dilution in shares could have offset the positive impact of higher gold prices2.
In summary, Newmont's Q3 2024 earnings fell short due to production issues and disruptions at key mines, along with lower gold production despite higher prices, and share dilution from recent acquisitions.