Newmont Corporation Q2 2025 Earnings Drop: Shares Plunge 7% Amid Production Challenges and Lower Gold Prices
Newmont Corporation, the leading global gold miner, reported disappointing Q2 2025 earnings due to reduced production and softer gold prices, causing a sharp decline in stock value.
Production disruptions from wildfires and labor strikes significantly impacted output at Newmont's key mining sites.
Newmont Corporation (NEM), the world’s largest gold mining company, fell short of profit forecasts for the second quarter of 2024, as decreased production volumes and lower sales weighed heavily on earnings. This led to a nearly 7% drop in the company’s stock price on Thursday, marking its steepest single-day decline in almost a year.
Highlights
- Newmont missed Q2 profit expectations due to a 17% decline in gold production and reduced sales volumes.
- Shares tumbled approximately 7%, reflecting investor concerns over operational setbacks.
- The anticipated completion of the $20 billion acquisition of Australian miner Newcrest Mining Ltd later this year could enhance future profitability.
Operational Setbacks and Market Pressures Impact Earnings
Gold output dropped to about 1.24 million ounces, primarily because a labor strike halted production at the Penasquito mine in Mexico. Additionally, wildfires forced a temporary closure of the Eleonore mine in Quebec, Canada, while production at the Cerro Negro mine in Argentina and the Akyem mine in Ghana remained below average.
Revenues declined 12% year-over-year, influenced by softer gold and silver prices. However, revenue was partially supported by increased sales of other metals such as copper and lead. Adjusted earnings per share (EPS) decreased to 33 cents from 46 cents in Q2 2023.
Operating costs per ounce of gold rose during the quarter due to reduced production but are expected to normalize as mining activities resume in the latter half of the year.
Looking ahead, Newmont anticipates improved performance following the expected closing of its acquisition of Newcrest Mining Ltd in Q4 2024, pending shareholder approval.
Despite gold prices rising since early 2023, Newmont’s shares have declined more than 8% year-to-date, reflecting ongoing operational challenges.
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