Gold Miner Newmont Corp Stock Falls After Q3 Results: Details

Newmont Corporation (NEM), the world's leading gold producer, reported its third-quarter results on Wednesday, October 23, 2024, with a mixed performance that sent its stock down in after-hours trading. The company's earnings and revenue beat analyst estimates, but its stock price fell due to a miss on sales and earnings per share (EPS) expectations, as well as concerns about rising costs and a potential slowdown in production growth.

Key factors driving Newmont's earnings and revenue growth in Q3 included strong gold prices, increased production from its Tier 1 portfolio, and the contribution of Newcrest Mining, which Newmont acquired in 2023. Newmont reported quarterly GAAP earnings of $76 cents per share and quarterly revenue of $4.605 billion, surpassing the consensus estimate of $4.568 billion.

However, Newmont's stock price fell as much as 7% in postmarket trading in New York after the company's adjusted per-share earnings and sales missed estimates. The company's adjusted EPS of $1.15 per share fell short of the $1.22 per share expected by analysts, while revenue of $4.605 billion was slightly below the $4.61 billion estimate.


Newmont's gold production and costs compared to analyst estimates and historical trends showed a mixed picture. The company produced 1.7 million attributable gold ounces, primarily driven by the production of 1.4 million gold ounces from Newmont's Tier 1 portfolio. However, gold AISC per ounce increased 3% to $1,611 per ounce compared to the prior quarter, primarily due to higher cash operating costs (CAS).


Newmont's acquisition of Newcrest Mining played a significant role in its Q3 results and stock performance. The acquisition added a suite of gold and copper mines to Newmont's portfolio, cementing its status as the world's biggest producer of the precious metal. Newmont churned out 1.67 million ounces of gold in the quarter, well surpassing its biggest rival, Barrick Gold Corp., which said it produced 943,000 ounces in preliminary results posted last week.

Newmont's guidance for the fourth quarter and full year 2024 impacted investor sentiment, as the company expects to meet its 2024 production guidance and deliver attributable production of 1.8 million gold ounces at an All-In Sustaining Cost (AISC) of $1,475 per ounce in the fourth quarter. However, investors may be concerned about the potential slowdown in production growth and the impact of rising costs on the company's earnings.


Newmont's free cash flow generation and debt reduction plans factored into the stock price decline, as investors may be concerned about the company's ability to maintain its strong financial performance in the face of rising costs and a potential slowdown in production growth. Newmont generated $760 million in free cash flow in the third quarter and continues to make progress on its non-core divestment program, which is expected to deliver up to $1.5 billion in combined gross proceeds.

In conclusion, Newmont Corporation's mixed Q3 results sent its stock price down in after-hours trading, as investors reacted to a miss on sales and EPS expectations, as well as concerns about rising costs and a potential slowdown in production growth. Despite the strong gold prices and increased production from its Tier 1 portfolio, Newmont's stock price fell due to the company's failure to meet analyst estimates and the potential impact of rising costs on its earnings. Investors will be watching Newmont's progress in meeting its production guidance and reducing its debt in the coming quarters.