Newmont Mining Corporation of Canada Ltd (TSX:NGT) has reported second-quarter earnings that fell short of market expectations, sending its shares lower on Thursday.
However, the gold mining company said it remains on track to achieve its full-year guidance following decisions it took during the period ended June 30, 2023.
These included suspending operations at its Peñasquito site in Mexico as it focused on resolving a dispute with the local trade union and evacuating and temporarily shutting down its Éléonore site to protect its workforce from the unprecedented wildfires in Canada.
Over the period, it produced 1.24 million attributable gold ounces and 256,000 co-product gold equivalent ounces (GEOs) from copper, silver, lead and zinc.
Gold costs applicable to sales (CAS) of $1,054 per ounce and gold all-in sustaining costs (AISC) of $1,472 per ounce were impacted by lower production volumes but the company said it expected costs to decrease in the second half of the year.
Adjusted underlying earnings (EBTIDA) fell 8% to $910 million, while adjusted net income per diluted share declined 17.5% to $0.33, below the $0.44 consensus estimate of analysts, according to Refinitiv data.
The miner said it expects to achieve full-year guidance of between 5.7 and 6.3 million ounces of attributable gold production with gold AISC between $1,150 and $1,250 per ounce, primarily driven by increased production at its Ahafo, Tanami, Cerro Negro, and Akyem operations and the two non-managed joint ventures at Nevada Gold Mines and Pueblo Viejo.
“Our business is underpinned by the industry's strongest balance sheet and a global portfolio with the size and scale to make decisions that deliver on our strategy,” CEO Tom Palmer said in a statement.
“We remain on track to achieve our full-year guidance, and I am proud of the prudent decisions made during the second quarter to safeguard our workforce, protect long-term value and position Newmont to deliver a strong performance in the second half of the year."
Newmont's shares were down 5.5% at $42.69 by mid afternoon on Thursday.
Contact the author at stephen.gunnion@proactiveinvestors.com