Newmont stock extends pullback after profit misses expectations, as costs grow faster than sales

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Shares of Newmont Corp. NEM, -3.30% sank 2.1% in premarket trading Friday, after the gold miner reported first-quarter profit and sales that came up shy of forecasts, as costs increased at a faster pace than sales. Net income fell to $48 million, or 56 cents a share, from $559 million, or 70 cents a share, in the year ago period. Excluding nonrecurring items, adjusted earnings per share fell to 69 cents from 74 cents, and missed the FactSet consensus of 72 cents. Sales rose 5.3% to $3.02 billion, below the FactSet consensus of $3.07 billion, while costs applicable to sales jumped 15.1% to $1.44 billion. The company estimates COVID-19-related costs of $17 million during the quarter. The average realized gold price per ounce rose 8.1% to $1,892, while gold costs applicable to sales per ounce increased 18.4% to $890. Attributable gold product decreased 8% to 1.344 million ounces. The stock, which is headed for a fourth-straight decline after closing at a record $85.42 on April 18, has run up 24.3% year to date through Thursday, while the SPDR Materials Select Sector ETF NEM, -3.30% has slipped 1.7% and the S&P 500 SPX, -2.77% has lost 7.8%.

This article was originally published by Marketwatch.com. Read the original article here.

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