Denver-based mining company, Newmont, reported a decrease in profit for the second quarter due to lower-than-expected gold production. The company’s profit in the recently completed quarter was $155 million, or 19 cents a share, compared to $387 million, or 49 cents a share, in the same period last year.
After adjusting for certain one-time expenses, such as changes in investment value, earnings were 33 cents a share. This fell short of the expected adjusted earnings of 41 cents a share, according to analysts polled by FactSet.
Newmont’s revenue also declined in the second quarter, totaling $2.683 billion compared to $3.058 billion in the previous year. This missed analysts’ forecast of $2.933 billion.
The company attributed the decrease in profit and revenue to a 17% drop in total gold production, as their mining sites extracted less gold than planned.
However, there was some positive news as the average realized gold price in the quarter rose to $1,965 per ounce from $1,836 per ounce in the same period last year.
Despite these challenges, Newmont stated that it is still on track to meet its full-year guidance for attributable gold production.
