Skip to main content

Newmont Corp NGT-T on Thursday fell short of Wall Street estimates for fourth-quarter profit, as the world’s largest gold miner struggled with lower prices and increased costs.

Average realized gold prices fell 2.2 per cent to $1,758 per ounce in the quarter from a year earlier, while all-in sustaining cost for gold, an industry metric that reflects total expenses associated with production, rose 15 per cent to $1,215 per ounce.

For 2023, Newmont has given a production guidance between 5.7 and 6.3 million gold ounces and guided for all-in sustaining cost between $1,150 and $1,250 per ounce.

Miners had to grapple with higher fuel costs, as well as labour shortages in 2022.

On an adjusted basis, the company posted a net income of 44 cents per share for the October-December quarter, compared with the average analyst estimate of 46 cents. Revenue for the quarter fell by 6 per cent to $3.2-billion compared to the year before.

Earlier this month, Australia’s Newcrest Mining Ltd rebuffed Newmont’s $16.9-billion takeover bid, but left the door open for a better offer.

A source familiar with management’s thinking previously told Reuters that Newmont was open to sweetening its offer.

Denver, Colorado-based Newmont said attributable gold production for the fourth quarter edged up to 1.63 million ounces from 1.62 million ounces in the previous year quarter.

Report an error

Tickers mentioned in this story