Newmont Corporation's (NEM, Financial) stock took a hard hit today, plunging 14.3% as investors reacted to mixed Q3 results. Despite net income soaring nearly sixfold to $922 million, the surge wasn't enough to offset concerns about rising costs. Revenue jumped 84% to $4.61 billion, fueled by a gold price rally to $2,518 per ounce and a 29% increase in production. But even with these gains, adjusted earnings per share landed at $0.81, missing expectations as higher expenses, particularly at Lihir and Peñasquito, ate into profits.
Costs didn't just sneak up; they slammed into the bottom line, pushing all-in sustaining costs to $1,611 per ounce, well above the forecasted $1,374. Analysts flagged this as a key reason behind the earnings miss, with overspending at sites like Cerro Negro, Akyem, and Lihir driving the blowout. Yet, Newmont isn't backing down—it's pushing forward with a $2 billion share buyback program, signaling its commitment to returning capital to shareholders despite the setbacks.
Heading into Q4, Newmont's still aiming to hit its full-year target of 1.8 million ounces. The plan is to bring costs back under control while capitalizing on strong gold prices. With strategic asset sales in the pipeline and an aggressive approach to shareholder returns, the company is setting itself up to turn today's market stumble into a comeback story.
