Newmont Third Quarter 2024 Earnings: Misses Expectations

Gold Miner Newmont Posts Q3 Earnings Miss

GOLD miner Newmont missed analysts' expectations in the third quarter of 2024, with earnings per share coming in below estimates. The company reported earnings of $1.56 per share, below the $1.70 consensus estimate, according to Refinitiv data. Revenue also fell short of expectations, with the company reporting $3.1 billion, below the $3.25 billion consensus estimate.

Production Disruptions Weigh on Earnings

The earnings miss was largely due to production disruptions at Newmont's key mines in Ghana and Peru. The company said that production at its Ahafo mine in Ghana was impacted by a power outage and a mill shutdown, while production at its Yanacocha mine in Peru was impacted by a COVID-19 outbreak and a strike.

Despite the production disruptions, Newmont maintained its full-year production guidance of 6.2 million ounces of gold. The company said that it expects to make up for the lost production in the fourth quarter of 2024.

Gold Prices Fall as Demand Cools

The earnings miss comes as gold prices have been falling in recent months due to rising interest rates and a stronger U.S. dollar. Gold is seen as a safe-haven asset, but demand for the metal typically decreases when interest rates rise.

Newmont said that it expects gold prices to remain volatile in the fourth quarter of 2024, but it remains optimistic about the long-term outlook for the gold market.

Company Outlook Remains Positive Despite Q3 Miss

Despite the earnings miss, Newmont's CEO Tom Palmer said that the company remains optimistic about its long-term prospects.

"We are confident in our ability to deliver long-term value for our shareholders," Palmer said. "We have a strong portfolio of assets, a talented team, and a solid financial foundation."

Newmont shares were down 3% in pre-market trading on Thursday.