...a gold industry leader lowering 2025 guidance at the time when Gold is hitting all time highs is unacceptable to the market. NEM faced significantly higher costs in Q3, and anticipates a 9% increase in full year costs in full year costs compared to previous guidance. Its EBITDA came in at -17% below RBC's estimates and -16% below consensus.
...And so NEM crashed -14.70% somewhat dragging down market sentiment in the gold space despite Gold recovering strongly gaining $29 to $2735! As a result, GDX was dragged down -2.61% given NEM being heavily weighted in the gold ETF.
...Company specific risk! And they take them on when they make acquisitions that later proved to be difficult.
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Listening to Newmont conference call now. I'm disgusted. Appears to me they bought a lot of problems when they acquired the Newcrest mines. In addition to Q3 miss, lowered 2025 guidance. I'm out - though I may be premature - as they're guiding to a strong Q4 and they do have a $2B buyback add.
Newmont's problems appear to be almost wholly company specific, though as the industry leader, their miserable performance is hurting the entire group (GDX -3.4% today). I assume next week's reports from the well-managed miners will provide a very different story for the industry.
