Union files complaint against Orla Mining, alleging violation of worker rights in Mexico
The complaint is only the second of its kind made from Canada using CUSMA’s RRM process since the trade deal came into force in 2020.
Second-quarter profit at Newmont Goldcorp fell significantly more than expected as the cost of deals and non-operating mines overwhelmed increases in sales, gold output and prices, the world’s biggest gold miner said on Thursday.
Newmont is in the process of integrating operations after it finalized its acquisition of Goldcorp and its Nevada joint venture with Barrick Gold Corp in the second quarter.
“The Goldcorp integration process is well underway and on track to deliver an additional $365 million in annual cash flow”
Chief Executive Gary Goldberg
“The Goldcorp integration process is well underway and on track to deliver an additional $365 million in annual cash flow,” chief executive Gary Goldberg, who will be replaced by president Tom Palmer on Oct. 1, said in Newmont’s earnings statement.
Costs incurred while Newmont’s Penasquito mine in Mexico and Musselwhite in Canada were idle contributed to the decline. Penasquito suspended operations for seven weeks due to a blockade by a trucking contractor and some community members, while a conveyor fire hit operations at Musselwhite.
Shares dropped 2.5% to $38.34 in early trading in New York.
“Results appear disappointing at first look — even allowing for noise from Goldcorp consolidation and Penasquito (blockade),” said analysts at Citi, who have a ‘buy’ rating on the stock, in a note.
“We expect 2019 to be a transition year for Newmont… The key is to exit 2019 with plans in place and demonstrate execution on synergies and operating improvements in 2020-21.”
The Denver-based company said it expects attributable gold production of 6.5 million ounces for 2019, at an all-in sustaining cost (AISC) of $975 an ounce.
Net income attributable to shareholders from continuing operations sank to just $1 million, or zero cents a share, in the three months ended June 30, from $274 million, or 51 cents a share, a year earlier. Analysts had expected $188.58 million, or 23 cents a share, according to Refinitiv data.
Second-quarter gold production rose 37% from a year earlier to 1.59 million ounces, with AISC of $1,016 an ounce, while the average realized gold price rose by $25 to $1,317 per ounce.
Newmont posted revenue of $2.26 billion, compared with $1.66 billion a year ago and analyst estimates for $2.38 billion. Adjusted net income, excluding the deal costs, was $92 million, or 12 cents a share, down from $144 million, or 26 cents, a year ago.
This month, Barrick said the Nevada joint venture is expected to produce 1.8 million to 1.9 million ounces of gold in the second half of 2019.
(By Nichola Saminather; Editing by Bernadette Baum)
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