Newmont Sinks 4%4 Despite Record Third-Quarter Profit as Gold Slides Back Toward $4,000
Newmont (NEM) shares fell 4% despite reporting record Q3 adjusted EPS of $2.20, beating estimates. Gold prices dropped to $4,020/ounce, impacting the stock. Management expects Q4 AISC of $1,900/ounce, with normalized EPS seen rising through 2028. Analysts note the stock trades at 11x forward earnings, near a 5-year low.
How this was made
The 30-second read
Why it matters
The earnings beat was outweighed by the decline in gold prices and higher cost guidance, leading to a negative market reaction.
Market read
The article highlights a disconnect between strong earnings and a falling stock due to commodity price pressure, relevant for miners and commodity‑linked portfolios.
What to watch
Newmont's long‑term projects and cash flow generation remain strong, and the gold price could rebound on macro cues.
Background
Newmont (NEM) posted a record Q3 adjusted EPS of $2.20, beating consensus, yet the stock fell 4% as gold prices slipped toward $4,000, below the $4,500 level assumed in its guidance.
Ticker impact
Newmont reported record Q3 adjusted EPS of $2.20 beating consensus, but shares fell 4% as gold price slipped toward $4,000.
likely further downside as market prices in lower gold price and higher AISC expectations
The earnings beat did not move the stock; the primary driver is the gold price drop and higher cost outlook, which suggests continued selling pressure.
Market effects
Gold miners may face pressure if gold stays near $4,000, affecting the broader mining sector.
U.S. and Canadian mining stocks could see similar moves.
Gold price movements influence commodity markets worldwide.
Counterpoint
Despite the sell‑off, the stock trades at a discount to historical forward earnings multiples, offering a potential buying opportunity.
Key entities
- CompanyNewmont Corporation
World's largest gold miner, ticker NEM.
