Newmont extends losses as Citi flags 'expectations reset'
Make us a preferred source
Make us a preferred source on Google
The news: Newmont shares extended loss on the ASX this morning after the gold miner's third-quarter results missed expectations on Thursday.
The numbers: Newmont was the worst performing company across the ASX 200 by 11:45am AEDT, with shares down 10.9% to $72.97. The stock closed 6.4% lower on Thursday after releasing its Q3 results.
The context: Citi analysts said that Newmont's cost performance during the quarter was "disappointing" and noted that an investor call on Thursday "did seem to represent a downward reset of expectations".
They flagged that production from Newmont's Tier 1 portfolio in 2025 will be "flattish, not up" and underlying costs in 2025 will be "flattish, not down".
The analysts also said that previous mid-term guidance of 6.7 million ounces in 2028 "seems under review", with Newmont noting that 6 million ounces is a good mid-cycle target. This may represent a 5% to 10% volume cut and an all-in sustaining cost increase of $100 to $150, they said.
The source: Citi research
