Jakarta –
The profit of the world’s largest gold mining company, Newmont, continues to decline. This was revealed in the company’s financial report in the second quarter which did not meet the target. This is the second time the company has reported revenue that did not reach the target.
Launching from Investorpedia, Sunday (23/7/2023), in the second quarter, Newmont’s revenue was recorded to have decreased by 12% when compared to the same period in the previous year. This condition could occur due to a decrease in the company’s total gold production by 17% to around 1.24 million ounces.
It is reported that most of the decline in the number of own production can occur due to mining workers in Penasquitos in Mexico going on strike which renders all the facilities there non-functional.
In addition, recently the company also had to temporarily close their mine located in Eleonore, Quebec – Canada due to a forest fire.
It did not stop there, the company’s Cerro Negro gold mine in Argentina and the company’s Akyem mine in Ghana were also reported to have experienced a decline in production due to a number of factors. This condition ultimately caused Newmont’s gold production to continue to fall, causing a decline in the company’s profits.
As a result, Newmont’s share value has also decreased in recent times. In fact, the value of the company’s shares fell by up to 8% during trading on Thursday (20/7) yesterday.
“Newmont shares fell about 7% on Thursday, posting their sharpest one-day loss in almost a year. They are down more than 8% so far this year, although gold prices have risen by about the same amount since early 2023,” Investopedia wrote in a report.
(rrd/rir)
2023-07-23 11:31:53
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